There's also an element where people aren't educated, so they all chase after the same homes. They want the ones with the best listing photos, the best locations. They're moving ready. That gives you that emotional tingle that you just love. Those are the houses everyone looks for. You're just looking for something that other people are going to pass up that you see the value in, that you're going to put a little bit of elbow grease into.

Sometimes bad smells can really benefit you when you're trying to buy a home because it's going to turn off a lot of your competition. Ugly floor plans. People don't realize it's usually not as expensive as you think to move walls around. But when it's got a closed-off kitchen, you can't see what's going on in the family room.

The wife's thinking, "I can't see what the kids are doing. I just don't like it." That's as far as they go. They don't realize that you can spend $2,000 and move a wall. You can see everything that's going on there. Then painting and flooring. You can fix homes up for a lot less than what people think today.

But you have to see the opportunity, not the move-in ready product.