You Will Make Money If You Do This ONE Thing Right

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Ask anyone about how to pick a good property to invest in, and you’ll almost get the same answer every time. In fact, it has become a cliche that the most important aspect to consider before buying a property is its location.

While I won’t dispute the importance of location when choosing a property to buy (especially when you’re buying for your own stay), but when you’re doing it to sell to make money later then you’ll quickly realize that there’s one more thing which is more important.

One of the people I met when I joined the Mentor’s mastermind group about two years ago was this rather interesting character dubbed “The Slayer”. Monikered after his favourite band (he had played drums in a Slayer cover band in the 90’s), he retired at a grand old age of 38 when he flipped a series of properties during the boom years. Being an 80’s thrash metal music fanboy myself, we had clicked quickly over our love for all things Metallica and Megadeth. \m/

Frayed ends of sanity! Hear them calling me!

Frayed ends of sanity! Hear them calling me!

Sidenote: Read about him raving about “Gekko Strategies” here and crapping on “Evergreen Strategies” here.

When asked about his “secret sauce” in property investing, this was his answer:-

“No doubt location is important, but it’s something that every Thomas, Richard and Harold knows! The property game is all about finding an edge. The problem with the find-a-property-at-a-good-location style of investing is that everybody is doing it that way… and it’s a quick race to the bottom. That’s the reason you see these long queues at those launches at highly inflated prices… when you’re already buying so expensively, how are you going to make money selling later?

So this was the most pivotal point of my real estate investment career. Instead of looking for properties, I started looking for desperate sellers. Location was secondary.. as long as it was Klang Valley it was OK for me. It’s all about buying low, and selling high… heck, it’s all about buying low. If I can buy a piece of property cheap enough then I will be able to flip it later for profit… it’s just a matter of time.

Khai Yin, here’s my advice to you. Stop finding properties. Instead, find desperate sellers. Do this ONE thing and you WILL make money.

“So your edge is knowing where to find desperate sellers and persuade them to sell their properties to you for cheap,” I clarified.

“Yes.”

“Who are these desperate sellers and where do you find them then?”

He just smiled.

Look For Sellers, Not For Property

Usually people who desperate to sell their property can be clustered into these two types:-

  • Type A: Those who bought dud properties and just want to unload them.
  • Type B: Those who have ‘problems’ which can be solved by selling their property.

About Type A’s – unless you know something about the properties that they don’t and that you have the special powers to turn duds around, stay away from them.

Instead, you want to talk to Type B’s, who are in life situations which would compel them to sell off their properties. These could be people who want to send their kids to some posh liberal arts school in the States and need to raise some serious cash. Or, a middle-aged executive who got expat-ed to London and his entire extended family is tagging along and not coming back. Or an expat who wants to sell off  his posh KLCC condo before heading back to his home in Australia with his new Malaysian girlfriend.

Of course, you’ll also find the occasional deadbeat who, for example, had long standing Ah Long bills and had to sell off his mom’s low cost flat in Menglembu. Or, a woman who is leaving his husband to follow a rich expat to Australia and is desperate to sell off the cheap condo they bought together.

If you’d ask me, I’d also avoid those deadbeats like I would avoid Type A’s, but hey, I’m here to talk about how to make money, and so my own preferences and prejudices are completely irrelevant.

Heck, I even know of this dude who would look at newspaper obituaries and cold-call people (“Hey, I heard your dad is dead! Why don’t ya sell me his house?”). I personally find these people to be rather despicable and I hope that they roast in hell for all eternity for the grief that they inflict on others. If that’s the path you’re choosing to take, well, then I suppose it has been nice knowing you, and please do me a favour by pressing Alt-F4 right now.

How To Find Legit “Type-B” Sellers

You now understand the importance of looking for sellers instead of properties. Also, if you’re like me, you want to deal with the “right” kind of sellers only (i.e. Type B’s), not deadbeats or people dealing with major sh*t in their lives.

In the next guide I am going to publish next week, I’m going to share with you some killer ideas on how to go around finding these legit “Type B” sellers, and when you find them, how you can coerce*, arm-twist* and emotionally blackmail* them into selling their beloved family jewels to you for sens on the Ringgit without using a baseball bat or any blunt weapon!

Now back to my earlier conversation with Slayer – he finally relented on telling me his way of finding Type-B sellers after I had threatened to break the neck of his prized James Hetfield ESP Custom “Iron Cross”guitar I was holding.

“I look for silly 25-30 year old kids who bought condos with the stupid DIBS scheme.”

Let this idea brew in your mind a little, and we’ll talk again next week. Seeya!

*I’m only kidding about threatening or blackmailing people. Please don’t report me.

About Khai Yin

When I am not writing for GoodPlace.my and helping my readers find properties though the DealMatcher service, I spend time doting on my three kids: Wenyi, Qinyi and Eian. My personal stuff, some published essays and contact details can be found at khaiyin.com

Comments

  1. Teong Bert Jin says

    what’s the consequence of alt+f4ed my laptop?

  2. Ahmad Nazren Abd Razak says

    Which is the continuation of this write up. A very interesting read. Thank you.

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