How we slept outside in the freezing cold to get a deal.

How do I find a good deal?

By sleeping outside in the freezing cold, apparently. That is what me and my fiancé did to be able to get our third real estate deal. It was right before it started snowing, like it so often does here in my hometown Tromso, which happens to be located above the arctic circle in Norway (Europe). Just think north of the Wall in Game of Thrones, and there you have your scenery. Yes, it was cold. Yes, we literally wore our sleeping bags as outfits. And yes, we were one out of two investors who got the deal we wanted that day.

What happened was a local realtor published a big sell off of new apartments (new construction). It was all to be launched on the same day, with first come first serve. If you placed an offer first, you got the apartment. There were only a handful of apartments, which were really nice, as some had views out towards the bay area. I ran the numbers, like I do on everything which enters our town of real estate, and immediately brought it to my fiancé. The numbers were awesome, and the asking price was at least 20 % below market. It was a deal.

We talked to our lender and got the OK. Then we waited for the day before the big launch. I went to the realtor's office to check if anyone had been crazy enough to get in line. To my big surprise and fear someone had! It was 30 hours before the sales would start, and to my astonishment a guy in a camper's chair sat down outside the realtor’s office on the street waiting. I remember wearing only work attire and work shoes and it was cold, but I ran over to the queue and got in line next to him and called my fiancé. My fiancé went home, got all kinds of camping gear, and came to meet me. Funny story, but we naturally became best friends with the guy in the chair who got the apartment one floor above ours. We sat outside for 30 hours in total to get the deal, and even ordered pizza together from a local pizza place down the street. The pizza delivery guy laughed when I explained where to drop off the pizza. How could he miss us? We were the crazy people in camping chairs outside the realtor’s office, just up the street.

The rest of the crowd of buyers showed up 2 hours before the launch, but by then it was already too late. Sure, they got nice apartments as well, but they didn’t get the crème de la crème which would throw off the best profits. Throughout the day and night people stopped and talked to us, asking us what we were doing there. Some wondered if we had become homeless, or if something bad had happened. We had to laugh. My colleagues thought we were absolutely insane. It was, despite the cold, an awesome night to remember. We had a lot of fun, because the entire situation was so crazy, but we knew we were doing the right thing.

Already now the comps in the area are showing a marked increase of 125 for each apartment, and the construction company haven’t finished building yet. We bought it with 15 % down. The price was 600 k. And we will most likely be able to sell it in 1-2 years for 820 k. So, with 90 k down, that is a profit of 220 k. If you look at it from a salary perspective, the hourly salary of that one 30-hour session is $7333/ hour. Pretty amazing!

So how could we do this? And more importantly how can you do the same? Basically, you create your own luck in real estate. Start by looking at deals every day. Even if you can’t buy anything. Spend time and look at deals. I’ve spent years specializing in learning everything that goes into the price of the square footage of my hometown. Do the same in your town. It’s free and doesn’t take much time. Make sure to take into account specific things which affect the square footage such as:

-Condo vs. Single family house.

-Location (downtown vs. out in the suburbs).

-Parking or non-parking.

-Floor (1st floor, 2nd floor, 3rd…) There is always a set numerical difference in price between condos located on the first floor to the second, to the third etc.. Find out what the difference is in your city by running the asking price of the condo compared to the total square footage.

-New construction vs. already built.

-New or old plumbing and electrical.

It’s not rocket science. It just takes time and dedication. And it gets easier and easier as you learn. Or maybe you’ve already “slept outside in the freezing cold” to get a deal? Share it with us here on Biggerpockets then! We’d love to hear about it. It doesn’t have to be as extreme as me and my fiancé’s story. What did you do differently to get you a good deal? Tell us so we can commend you for it or connect with you in the future. Who knows? Maybe we can arrange a new outdoor sleepover.