How To Find Cheap Houses In Seconds

the goal with wholesaling and flipping is to find and acquire discounted or cheap houses that you can wholesale or fix and flip for profit well how do you find and identify a cheap or discounted property on today's video I'm gonna show you how to find cheap houses in seconds coming up for a limited time you can get a free copy of Jerry Norton's data cruncher software which finds cheap houses in your area get it now at my data cruncher com if you're new here to the channel I'm Jerry Norton flipping master comm and this channel is all always to help you make money whole salient and flipping real estate so you can live your dream life be sure to subscribe and turn on the bail notifications so you don't miss new videos so what is the definition of a cheap property a cheap property is simply an under priced property for sale that is discounted below the current market value for homes in that area for example if market value is a hundred thousand and a property for sale for ninety thousand it would be an under fresh property or what is often called cheap or discounted now consequently if it was for sale for a hundred and ten thousand that would be an overpriced property as an investor and especially a wholesaler and flipper being able to quickly identify discounted properties for sale is a shortcut to getting good deals under fresh properties are the low-hanging fruit because more than likely if the property is discounted there's a good chance that either the property is distressed or the seller is distressed usually financially and is therefore motivated to sell so how do you know if a property is under priced on this video I'm going to show you a simple technique for how to quickly identify if a property is under priced by using a simple formula so in order to know if a property is cheap or discounted you first have to establish what market value is if you know what market value is on a home that any price below market value would be considered a cheap or discounted property because it is for sale below market value in order to quickly establish the market value in an area we're going to use one of the most important mathematical equations for real estate investors and that is an equation called price per square foot the math is pretty simple you the price of the home and divide it by the square footage of the home to get the price per square foot so if the home price is 225 thousand and the square footage of the home is fifteen hundred then 225 thousand divided by fifteen hundred is a hundred and fifty dollars a foot that means every square foot is valued at $150 now price per square foot allows you to look at homes apples to apples and on an equal playing field because you're looking at the price per foot not just the price to illustrate this let's compare two homes in the same area that are different sizes and have different prices home a is 1,800 square feet and has a price of three hundred and nine thousand six hundred dollars and home B is 1920 square feet and as a price of 330 thousand two hundred and forty dollars well assuming all things being equal we can't really compare these two homes against one another based on price because one home is bigger than the other so let's look at price per square foot home a has a price per square foot of a hundred and seventy two dollars but guess what home B also has a price per square foot of one hundred and seventy two dollars so even though home B has a higher price they actually have the same value per foot now again price per square foot allows you to look at homes apples to apples on an equal playing field because you're looking at the price per foot not the price now if that is still confusing or doesn't make sense to you watch that part again and I also have another video where I dive into more depth about price per square foot now I'll put a link to that video in the description below for you now that you understand price per square foot let me show you how to use it to establish market value in an area and then how to use it to identify which homes for sale are under priced first let's take a look at price per square foot and apply it across an entire area to establish the market value by looking at the average sold price per square foot now this would be taking all of the sold homes in a given area and then taking the sold prices by all of those homes and then divide that by the square footage of those homes to get the average sold price per square foot now that would be a lot of math to figure out on your own luckily this information is readily available if you know where to look let me show you using Redfin calm the reason why I prefer red fin over Zillow or other sites is because Redfin gives the price per square foot data unfortunately Redfin is not yet in every single market so let me show you how to find this info go to red fin calm and type in your zip code where you look for deals as an example let's use 7 3 1 1 8 now it shows a map outlined on the left with pins of homes and on the right it gives details about all of those homes now these are active homes for sale but we want to see the sold homes so go over here to the filter tool and click more filters and then click house so we exclude condos and stuff then change it to sold and click 6 months now if you want to look at more data you could use 12 months but let's stick with 6 months then click apply and scroll to the very bottom of your list and right here it tells you the average sold price per square foot so that means as of this recording in the past 6 months homes in this zip code sold for a hundred and forty-four dollars a foot but looking at the zip code might be too big of an area and you may want to look at any more specific area within that zip code so for example let's say I just wanted to look at this pocket right here within the zip code so I would click draw and with your mouse I would draw a box around that specific area once you do it will automatically recalculate the data for just sold homes inside the area we drew now let's scroll down to the bottom and see the new adjusted average sold price per square foot of a hundred and sixty one dollars okay for illustration purposes on this video let's go back to the entire zip code so now that we've established the average sold price per square foot of a hundred and forty four dollars for that particular zip code we can draw the conclusion that any homes currently for sale in that zip code below 144 dollars per foot are under priced why because the asking price per foot is less than the average sold price per foot these are your low-hanging fruit so let's go back to red fin and switch off sold and turn back on active and then here looking at our table go to the price per square foot column and click on it now make sure that arrow is pointing up and that now sorts the list from the lowest to the highest now all of these properties under 144 dollars a foot are ones we want to go after first for example if I click on this one right here for sale for $60 a foot you can see that it's vacant and distressed this would be a good lead to go after so now you know how to find cheap properties for sale in seconds the key is being able to have a systematic way of going through all of these leads every single day without losing track of what you're doing and what you're looking at and getting all unorganized so let me show you a tool I built that helps you organize streamline and automate this process I just showed you on this video it's called flipster and if you've never heard of flipster it's an all-inclusive deal management system that has built-in tools for every step to wholesaling and flipping houses and one of the deal finding tools that comes standard with flipster is this tool here called MLS finder this still takes what I showed you on this video and it instantly gives you a list of all of the underpriced properties from that list you have tools for managing the leads such as the leading saving adding to your properties and analyzing the deals that will you know exactly what you've done every single day and you keep everything really organized and this is just one of dozens of tools inside a flipster so if you're looking to do your first deal or level up and do more or bigger deals flipster can help you get there to check it out and see it in action just go to get flipster calm hey I hope you learn something new on this video if you did show some love hit that like button right now and leave a comment let me know your biggest takeaway from this video I'd love to hear from you and if you haven't yet be sure to subscribe to my channel with over 400 videos and new videos every single week this is the number one channel for all things wholesaling and flipping and don't forget it's not about the money it's about having the time and freedom to have be do and give everything God has in store for you that's what it's really all about and I'll see you on the next video

Channel: Flipping Mastery TV

Views: 48,102

Rating: 4.9270315 out of 5

Keywords: How To Find Cheap Houses In Seconds, Jerry Norton, how to find cheap houses, wholesaling real estate, real estate wholesaling, wholesaling houses, flipping houses, house flipping, how to find cheap property for sale, investing in real estate, cheap houses for sale, cheap property, getting started flipping houses, how to wholesale houses, how to find houses to wholesale, how to find motivated sellers, how to find discounted properties, find real estate

Id: 0GObFUt2Ri0

Length: 8min 42sec (522 seconds)

Published: Wed Oct 02 2019