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“The GoodPlace Guide To
Hunting Undervalued
Properties”
By the GoodPlace.my Editorial Team
Copyright © GoodPlace.my. All rights reserved. Do not copy or distribute without
permission.
The GoodPlace Guide To Hunting Undervalued Properties
2 | P a g e
Note: This is a continuation from the Part 1 of the
GoodPlace.my Homebuyer Guide Series on How To Value A
Property. If you have missed that report, go back to the
download page (link is in your Welcome email), and if you
have not signed up yet, click here.
oldie immediately got a hold of her pen, and went over
her notes quickly. Uncle Patrick pondered over Goldie’s
question, and finally said, “So. You want to know where
and how to find these super-motivated sellers who will sell
less than the fair market value, am I right?”
“Yes! Well—I’ve always assumed that property sellers would only
have the highest possible selling price in mind—“
“Ha!” Uncle Patrick interjected. “Then you assume wrong! Haven’t
you heard of that saying.. ‘when you assume, you make an..’
nevermind! Of course you know where I’m getting at,” Uncle
Patrick exclaimed. The two laughed before Uncle Patrick
continued.
Taking It All Back
“Well… there are a lot of factors. For one, there’s always
repossession.”
“Repossession… like when people fail to keep up with house
payments and they get kicked out of their own homes?” Goldie
replied.
“You make it sound so simple, I like it. But you are actually
correct.”
“I watch a lot of movies, Uncle. Besides divorce, another typical
climax in a Hollywood film is a family’s house being repossessed.
Then there’s where the crying starts. I guess it’s easy to figure
out.” Goldie said, as-a-matter-of-factly.
G
The GoodPlace Guide To Hunting Undervalued Properties
3 | P a g e
Uncle Patrick chuckled. “Okay, you’re right on point with
everything. But on a serious note, my dear Goldie—repossession
is a scary thing. It’s not only happening in Hollywood—it’s
happening in real life, everywhere and all the time here in
Malaysia. Now, when a homeowner’s house gets repossessed, a lot
of problems will follow for sure.”
“Example?” Goldie inquired.
“Example number one. Very very bad credit score. Meaning, no
more chances of getting help being funded when buying another
property, or another
house loan, or any type of
loan,” explained Uncle
Patrick.
“Ouch,” said Goldie.
“Ouch indeed. Then, more
often than not—these
people whose houses are
put up for repossession are already drowning in debt. If their
house gets repossessed, imagine the horrors—no money in the
ATM, no house to live in, no food to eat... well probably they’d
have something to eat—if you live in the US, where they have food
stamps—“
“Food stamps! That’s really depressing,” said Goldie, along with a
sigh.
“True. Very Hollywood-like, like you mentioned. The
embarrassment is too hard to bear, even to imagine. So. These
people, what they do is sell their houses below the fair
market value even before it gets repossessed.
They may not be able to get the entire market value from their
property, but think of this—at least with the money they get from
selling their houses at a lower price, they’d be able to pay off their
existing debts—which I assume are all at risk of gaining lucrative
interest rates.”
Goldie thought a moment, and said, “Well, at least with the money
they’ll be getting, they’ll be able to start again. Or find a place to
rent that fits their budget.”
“Look for sellers who
want to unload their
properties before they
get repossessed.”
The GoodPlace Guide To Hunting Undervalued Properties
4 | P a g e
“Right. Everyone deserves a moment to start again, so I agree with
you on that one 100%,” smiled Uncle Patrick.
Goldie remembered seeing notice boards on the way to Uncle
Patrick’s swanky bungalow on Bukit Tunku.
“This reminds me of those notices that people put up which
advertise services where property gets exchanged for cash.”
Uncle Patrick nodded. “Yes, I bet you’ve seen those on your way
here! Those are middle men who typically target desperate sellers
in trouble and try to get their property at bargain bin prices.”
“Okay. Repossession counts as one. What are the other factors,
Uncle Patrick?”
Personal Troubles
here are a couple more. Sometimes, sellers would sell
their houses below their fair market value because of
personal preferences coming out from personal events.
Want to take a shot in guessing what one would be?” Uncle Patrick
asked.
“Let’s see... a-ha! How about divorce?!”exclaimed Goldie, obviously
excited.
“Haha! You, my dear—have been watching a lot of those
Hollywood films. But then again, you are always correct! Very
good!” replied Uncle Patrick, with a hearty laugh.
Uncle Patrick continued. “For recently-divorced couples,
sometimes splitting the money that is going to be made by the
selling of their previous house would take a hell lot of
inconvenience on both ends.
T
The GoodPlace Guide To Hunting Undervalued Properties
5 | P a g e
Not everyone can stand the company and the sight of their exes,
especially when meetings had to be done, lawyers to see, papers
to be signed—so what
they do is just sell their
house at a much lower
price to attract buyers
and get a move on with
their lives.”
“Well—Hollywood has
told me that the majority
of couples have a 30%
rate of getting back
together, so selling their houses at a lower price probably is
always not a good idea?! That’s still money, Uncle Patrick!” said
Goldie.
“I don’t know where Hollywood gets those numbers, but that’s
something I can’t explain.
“Like I said, it’s a personal choice. It’s mostly a preference that
resulted from something rooted deeply in their personal lives. I
am not a couples’ therapist, nor a psychologist—just a real estate
genius. Forgive me if I cannot answer your question,” said Uncle
Patrick with a light chuckle.
“Haha! I’m just thinking out loud! Alright, Uncle P. Point taken. So
my list is growing. Do I have anything else to add to that?”
That Need For Life’s Simple Pleasures
ust a few more. In addition to personal preferences,
sometimes people who are hitting their early 60s would prefer
to sell their previous houses at a lower price. The need to move
out and move in to something simpler, say, something more
peaceful and quiet, or basically—smaller, becomes something
retirees consider.”
“Got that one,” replied Goldie. “Selling their previous homes
below the fair market value is actually convenient. Who needs
a big house when all your kids are living their own lives? Wait—I
J
“There are sellers who
just want to sell their
houses quickly because
of personal issues, like
a divorce.”
The GoodPlace Guide To Hunting Undervalued Properties
6 | P a g e
think you are an exception,” said Goldie, while looking around
Uncle Patrick’s cosy and large living room.
“Well—let’s just say the bigger, the better. More relaxing. I don’t
know, Goldie. The thought hasn’t hit me yet. Probably soon. I’d
move out and buy a smaller house. In Puchong, maybe, so it’s easy
for me to bug you for a cup of sugar that I forgot to buy at Tesco
because I am really ageing and getting forgetful.”
“You are funny, Uncle! You are a funny, young-at-heart-old man,
living in a big house!”
“You forgot to add ‘real
estate genius’ on that one,
my dear,” laughed Uncle
Patrick.
Uncle Patrick’s cat,
Shadow, suddenly came
out of nowhere. She
rubbed her face on Uncle
Patrick’s toes, signalling
him to get up and get her food in the kitchen. Goldie scanned her
notes quickly, then a question struck her as Uncle Patrick came
back and sat down on his chair.
Undesirable Properties
“Uncle, how about those properties that don’t look—too good? Or
have a history? Do you get what I’m saying?” inquired Goldie.
“Ah, yes. Good thing you brought that one up. Of course, not all
houses or condominiums look as amazing like The Troika!
“Also, sometimes these properties haven’t been maintained for
the longest time—meaning a whole lot of repairs for the next
owner, meaning more problems and inconvenience.
“Look for sellers who
value convenience and
ease of transaction
above price. Like senior
citizens.”
The GoodPlace Guide To Hunting Undervalued Properties
7 | P a g e
“I guess it’s fair enough to say that these houses would be sold at a
relatively lower price,” explained Uncle Patrick.
“Hmm, but are there lots of those around? I mean, I do see
abandoned properties from time to time especially when I am
back at my hometown. I would be hard pressed to find any in KL, I
mean.”
Uncle Patrick smiled. “You’re right. These are obviously hard to
find, but if it’s easy to find undervalued properties then
everyone would be doing it and those properties won’t be
undervalued!
“Kind of a Catch-22 situation there, I know. But if you put in the
effort to look then you’ll be amply rewarded, that’s for sure.”
Goldie nodded.
The Game Of Business
ow let’s shift gears a little and talk business.
Businesses are prone to downturns. If businesses
reinvest their profits into residential properties and at
some point the company faces cash flow problems, what they do is
they put out that residential property for sale, and sell it below its
fair market value,” explains Uncle Patrick.
Goldie took a moment to take a sip of her Earl Grey. “Well, in
tough economic times, I guess this is probably the last-ditch effort
of some businesses to
save their behinds instead
of putting their
businesses at risk!”
Uncle Patrick agreed.
“During the boom years,
you will see companies dipping their toes into the property
development business, so diversifying into property is not a new
thing.
“A lot of businesses do this, Goldie—even respectable and
profitable ones. It’s a game—the economy, that is—you never
know where the ball is about to head next.”
N
“Look for businesses in
trouble with properties
on fire sale.
The GoodPlace Guide To Hunting Undervalued Properties
8 | P a g e
“I know, Uncle. You’re correct on that one. So... I have in here in
my notes… Repossession, personal troubles, personal preferences,
business cash flow issues… got it.”
But Dear Motivated Seller… Where Art Thou?
Goldie changed seats, choosing Uncle Patrick’s leather easy
chair over the couch. She kicked her flats, raised her feet to the
table, making Uncle Patrick smile.
“Seems like you’ve made yourself comfortable, Goldie. It’s a
beautiful sight,” observed Uncle Patrick.
Goldie smiled. “Well, Uncle P. I am learning a lot from you. I never
thought I’d enjoy talking about real estate this way! Every
question I have is all answered rather brilliantly!”
“Thank you,” replied Uncle Patrick. He cleared his throat before
continuing. “Hang on a moment, Goldie. You’re forgetting the most
important question.”
Goldie laughed before realising that she still hasn’t asked Uncle
Patrick where to find
these motivated sellers
who would sell houses
below their fair market
value. “But of course!
Where is my head!? I guess I got too excited. Or probably you put
something in my Earl Grey when you returned from the kitchen?!”
“I assure you, no. But will consider putting Red Bull in it if you
keep on forgetting things,” laughed Uncle Patrick.
“I am so sorry! Okay, Uncle Patrick. The floor is yours. Where do I
find these uber-motivated sellers?”
“Find a good agent to
help you.”
The GoodPlace Guide To Hunting Undervalued Properties
9 | P a g e
The Agent Is Your New Best Friend
“So, let me ask you a question, Goldie,” Uncle Patrick said.
Goldie sat up straight. “Sure, Uncle.”
“Now, when you first thought of buying a house—what did you
first do?”
“Hmm. Well, first I Googled the few locations that I had in mind to
research and read property reviews.
Then, when I have zeroed in the property I wanted, I asked
around for property agents who could help me out with what I’m
looking for. I also posted on my Facebook wall to ask my friends.
It’s the agent’s job, of course, to help me get that house for me,
right?”
Uncle Patrick smiled. “Right. It’s their job to make lives easy for
investors and homebuyers like yourself. However—if you are
planning on becoming a full-time property investor, do you know
what would make
things even easier?”
“Tell me, Uncle!”
Goldie exclaimed.
Uncle Patrick
continued. “Well, the
first thing you want
to do is to make a property agent COME to you. Not the other
way around. It’s a role-reversal, so to speak.
The agent would come to you if he knows a property that is selling
below its fair market value. That pretty much makes things easy
on your end—effortless, if I may add.”
“But how will I make them come to me? I mean, I can’t just barge
into their offices and say ‘Here’s my number, so call me if you know
a house that’s selling below its fair market value, maybe?!’”
“Hahaha! If it was that simple and less-chaotic then a lot of people
would have done that already. But it’s not that simple.
“Establish trust and
build relationships with
an agent who will
bring you the deals.”
The GoodPlace Guide To Hunting Undervalued Properties
10 | P a g e
“Most of the time people who would do that strategy will have
their faces stuck in mud, nothing else. Agents consider them as a
waste of time, so it’s best not to do some barging in the near
future. Or better, never,” Uncle Patrick laughed.
“Of course, Uncle Patrick! I was only kidding. But seriously. I know
a lot of it depends on negotiation, an open communication, and
trust in order to build a relationship with these real estate agents.
I guess it’s a little harder than it sounds.”
“Trust is always a huge factor. Of course, you have to
demonstrate professionalism each time you deal with estate
agents, so you look credible and serious enough in order for the
deal to push through.”
“How does one do that, Uncle?” asked Goldie.
“Honestly? Agents would prefer to work with someone who is
modest. Not the barging type, like you suggested.” Uncle Patrick
laughed out loud, in
between sips of his Earl
Grey.
“Now. You need to make
them feel that you are a
serious investor—that
you are capable of your
word, and that you are serious enough to consider all the
options, the risks, and everything that may be involved in
investing on a property that is selling below its fair market
value.”
“Go on,” Goldie replied.
“For one—having ‘show money’ is truly important. I know it
sounds very materialistic but it’s only business—most real estate
agents would act accordingly whenever money is thrown in the
equation.”
“That makes a lot of sense. It’s business, after all.”
Uncle Patrick nodded his head. “Right on point. Also, real estate
agents would appreciate it if you would act promptly on decisions
that need to be made. This gives out an air of professionalism on
your end, making them want to trust you. It’s just the first step in
getting the trust of these real estate agents.”
“Asking the right
questions will
legitimize your stand
as a serious investor.”
The GoodPlace Guide To Hunting Undervalued Properties
11 | P a g e
“First step? I thought that was the last! But go on, Uncle Patrick. I
have your attention”.
“So the next step would be asking the right questions in order
to create a relationship with a real estate agent, and
eventually let them tell you which properties are selling at
lower prices.
“When a relationship is built, it’s always easy for investors to get
calls from real estate agents to let them know which property is
selling at what price, or which property is selling on the market
that is below its fair market value.
“It’s like you being a VIP, and your mobile number is always
number 1 on the agent’s speed call list.”
“I am ready to list down all these questions that should be asked,
Uncle!” said Goldie while flipping her notebook.
Patrick’s Three Golden Questions
lright! First question would always have to be: ‘Do you
have any property that you’ve been marketing for a
long time?’” stated Uncle Patrick.
“Ah. So you’re saying that the longer a property is listed on the
market, the higher the possibility that a seller would be willing to
sell it at a lower price, below its fair market value?” asked Goldie.
“Not always. But the possibilities are high. I’ve been in the real
estate game for so long to know that most of the time, these sellers
would be really, really motivated to sell property at a much lower
price.”
Goldie scribbled all the information down hard. She needed a
moment to pick up another pen from inside her bag, as her
current one has stopped responding. She wrote, finally:
A
The GoodPlace Guide To Hunting Undervalued Properties
12 | P a g e
Uncle Patrick’s Golden Questions:
One: Do you have any property that you’ve been trying to sell for a long time?
Uncle Patrick peered over Goldie’s shoulder. He glanced at her
notes, asked Goldie if he can borrow it, and with Goldie’s
permission, he wrote and added:
Two: Do you have any hyperactive sellers?
Three: Do you have any multi-agent properties?
He then gave Goldie her notebook back. Goldie examined her
notes.
“Your handwriting is far from legible, Uncle Patrick. It’s a good
thing that these three ones are all almost self-explanatory because
I would need a magnifying glass if you’ve decided to explain
everything in writing.”
Uncle Patrick laughed out loud, surprising Shadow, who was
sleeping peacefully at his feet. “Good thing you’re a fast learner.
“What exactly is a hyperactive seller, Uncle?”
“Well, ask the agent if there’s any seller who is particularly
annoying! You know, the type who calls the agent ten minutes past
midnight to see if there are new leads. If this is not a sign of
desperation, God knows what is.”
The GoodPlace Guide To Hunting Undervalued Properties
13 | P a g e
Goldie chuckled. “Alright, noted. How about multi-agent
properties?”
Uncle Patrick explained, “It’s what it says on the can. Those are
simply properties which are marketed by multiple agents, or even
by multiple real estate agencies. Again, that’s a sign of hyper
motivation or even desperation.”
“Makes sense, Uncle.”
Let’s Kick It Old School
ne thing I’ve noticed about your generation, Goldie—is
that you tend to depend on the Internet too much—far
too much, in my opinion.”
“Well Uncle Patrick. My generation would not know what to do
without Google or Facebook. It’s a shame, really. Why? What are
you getting at?” Goldie wanted to know.
“Because sometimes—well most of the time—properties that
are selling below its fair market value are advertised in the
local paper.”
“I’ve to say that I haven’t been paying attention to The Star for the
past couple of months now, Uncle Patrick. I get most of my news
on-the-fly either through
online news sites,
Facebook or Twitter.”
“I know. Newspapers
may be a dying breed
when it comes to news,
ironically. However, it’s
still a force to be
reckoned with when it
comes to classifieds
especially in this part of the world.
“While there’s continued migration from offline to the online
world, you will find that typically there are more undervalued
properties advertised in the newspapers than online.
O
“You are more likely to
find undervalued
properties in
newspapers than at
online portals.”
The GoodPlace Guide To Hunting Undervalued Properties
14 | P a g e
“And get this. Newspapers are just the beginning. I haven’t even
mentioned postcards and leaflets yet!”
“Really? Postcards and leaflets? Wow, I didn’t know that!” Goldie
answered.
“Well, now you know that Mr. Internet isn’t really Mr. All-That,”
Uncle Patrick smiled.
“Hahaha. You have that one thought summarised pretty well,” said
Goldie.
Sourcing Leads From Other Buyers
inally, there’s also that option of buying leads from
other investors. Meaning, you can get some information
on these properties that are selling below their fair market
value if you have extra ringgit to spare to pay for their finder’s
fee,” explained Uncle Patrick.
“Ah! That sounds really easy! But the problem with that is not
everyone has that extra ringgit! However, that will make out
things very, very easy. I wish I had that extra ringgit, Uncle
Patrick.”
“Don’t worry. You will!
I trust that. And when
you do and decide on
buying a lead from an
investor, all you have
to do is go to the
internet and do a little
research. This is where
Mr. Internet becomes
Mr. All-That once again, because it’s easy, quicker, and more
convenient.”
F
“You can also source
leads directly from
other buyers if you
have got the cash to
spare.”
The GoodPlace Guide To Hunting Undervalued Properties
15 | P a g e
“Noted, Uncle. What are the places where I can perhaps get leads
for a fee?”
Uncle Patrick smiled. “Well, there are certain websites which I can
get leads based on location. For example, KLCCcondominiums.my
is a specialized site on KLCC properties. You can find potential
buyers at that site from all over the world, not only Malaysia.”
“Got it!”
“Also, don’t discount good, old-fashioned networking. The
more people you know, the more information you can scrape.
Sharing deals is a common activity among investors who have
developed relationships with their peers, so just find the right
person to help you out and stick with him or her, and expect that
avenue of information to come alive right before your eyes,”
replied Uncle Patrick.
Learning & Putting Everything Into Action
oldie closed her notebook and stretched. “That was a
whole lot of information I can definitely use! Thank you,
Uncle Patrick,” she said.
“Hahaha! I never thought you’d be this interested in real estate as
much as I am! You learn quick and asked the right questions. I
hope you get to apply them some time soon.”
“I’ll try my best. I would be professional, ethical, balance between
Mr All-That Internet and the old-school, and just… basically allow
these real estate agents come to me by building trust that will lead
to a long, satisfying relationship. Am I right, Uncle?”
Uncle Patrick raised his hand for a high-five. Goldie laughed, and
returned it back. “That’s why you’re my favourite nephew. You’re
on your way in becoming the second-best real estate genius on
this side of town.”
“Second? Who’s the first, then?!” asked Goldie.
“Well—yours truly. Come on now. You would give me that one
credit, right?” answered Uncle Patrick with a laugh.
G
The GoodPlace Guide To Hunting Undervalued Properties
16 | P a g e
“Of course, Uncle,” Goldie replied, smiling. “Of course.”
In Summary…
1. Look for sellers who want to unload their properties before
they get repossessed.
2. Understand that there are sellers who value quick cash
and convenience more than the price.
3. Sellers with personal issues (like impending divorces)
may agree to sell at price lower than the market value.
4. Businesses with cash flow problems tend to offload
properties at fire sale prices.
5. Getting the help from a good agent is a must. Know
what to ask an agent when you hunt for undervalued
properties:-
a. Look for properties which have been marketed for
a long time.
b. Ask for hyper-active sellers.
c. Ask for multi-agent properties.
n the next episode of Goldie & Patrick, we explore one of the
“hidden” aspects of property investment – simple methods to
maximize cash flow from a property purchase.
We will share some little-known tricks on how to make
investments generate immediate cash in order to make your
property empire grow. If you are looking to scale up your portfolio
then you will find this report valuable.
We are currently putting the finishing touches on the report, but
you can get early access by leaving us a message on this page:-
Click Here
I
The GoodPlace Guide To Hunting Undervalued Properties
17 | P a g e
Published by The GoodPlace
Network
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Wawasan, 47160 Puchong, Selangor,
Malaysia
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