Editor's note: When it comes to real estate, Dr. Steve Sjuggerud says it's simple...

No matter what type of properties you're buying, you must understand three principles to be successful – You always want to buy at a discount... You want to do it when the interest-rate environment is good... And you want to buy in places where prices are moving higher.

In this weekend's Masters Series, to show these rules in practice, we're sharing a couple of Steve's real estate adventures from the past two decades. They come from a special report for his brand-new True Wealth Real Estate advisory, which Steve just launched this week.

Tomorrow, he'll detail how one critical trait can guide you through all the challenges to the ultimate payoff. But first, we'll begin today with a real estate buying experience that made Steve feel like he was in the world's strangest action movie – a financial thriller...

The Secret to Finding a $400,000 Home for Half Price

By Dr. Steve Sjuggerud, editor, True Wealth Real Estate

It felt like I was in a spy movie. No kidding.

In 2013, banks were still reeling from the housing bust. And as strange as it sounds, many of them owned homes they didn't even know about.

That might sound hard to believe. But it actually happened. And it created one of the best buying opportunities of my lifetime.

Where I live, on the east coast of North Florida, banks made dangerous loans during the housing boom of the 2000s. That was true in a lot of the country. But aside from places like Las Vegas and Miami, it was about as bad as it gets.

So just like everywhere else, when the housing crisis got crazy, the banks here suffered. Many went out of business or merged with others. So mortgage obligations were bouncing around from bank to bank. And when properties went into foreclosure, it made things even messier.

In my case, one home ended up in the hands of Bank of America. It was a big, beautiful home, tucked away just one block from the beach. Here's the kicker...

Bank of America didn't know it owned the place.

Think about that... Someone had owned this beautiful home. When the housing crisis hit, they had to walk away from it. They probably lost so much on the house they decided not to pay. They had to just give it up entirely.

In the industry, they had a name for the envelopes these defaulting homeowners would send to the banks: "jingle mail." They'd put the keys in an envelope, mail it to the bank, and walk away. The finance term for this is "strategic default."

It was someone's job to shake all the mail, listening for the jingle of the keys. But the most important part is... the homeowners who walked away stopped paying their taxes.

Now, the government is going to get its money, no matter what. The tax debt doesn't just go away. And the home I found was in exactly that situation. Here's where the story gets really crazy...

The home that I'd found was going to auction. The county would sell it to the highest bidder on the courthouse steps.

No joke. In my county, you show up at the courthouse to bid on these things. It felt like the Wild West.

The thing is, Bank of America owned the home. It had already foreclosed on the homeowner and taken control of the property. All it had to do was pay the taxes to keep it. But thanks to a paperwork mix-up, the bank didn't realize it.

As strange as it is, my checking account at the time was with Bank of America. And to buy a home like that at the courthouse auction, you had to have cash... right there... that day... to make the 5% down payment.

That means I started my day by driving to Bank of America to withdraw a boatload of cash. And even that was a process...

"I need $20,000 in cash," I say to the teller. I know her from the community.

"We don't have that much cash, Steve," she tells me with a worried look. "The truck just left."

Not enough cash? I never knew how little cash banks actually keep on hand. But it was a problem for me that day.

I push back, asking what she could do to get me the cash. She picks up the phone in a hurry. After she hangs up, she says she just called the money truck. It's turning around to come back.

As we fill out the necessary paperwork, the teller asks me, "So, what'cha buying today?"

"Oh, I'm buying a home at the courthouse." I know full well that I'm about to buy a house that this bank owns, but has forgotten about.

For the teller, it's a world away. She's just happy to have solved my cash problem. Meanwhile, I feel like James Bond.

So finally, with cash in hand, I drive to the courthouse. I'm half expecting the auction to be canceled. I mean, how could Bank of America really let this happen?

Either way, there I am. Criminals are coming in and out of court, and I've got my pockets absolutely stuffed with cash.

I can't believe it when the auction starts. I have basically no competition at all.

There are about 30 other people standing around... but they bow out once the bidding gets above $10,000. The auction is lightning fast. And just like that, I buy the property.

Remember, it would have taken near zero effort on Bank of America's part to stop this. The bank just needed someone to key in a few numbers. If it paid off the roughly $6,000 in back taxes, it would have kept a home worth several hundred thousand dollars.

Regardless, I've won the auction. And for the first time all day, my stress level is starting to drop.

I think I own the house. But then the courthouse tells me that the bank can get it back at any moment. I've only paid the deposit. Bank of America can still pay the back taxes. "And by the way... they've informed us that they intend to pay."

So, I get back in my truck. I drive 25 minutes back to Bank of America. I need a cashier's check for the rest of the money to seal the deal.

Once again, I'm at my local Bank of America branch. And I'm about to buy a home from the bank for less than half of its value.

I get my cashier's check, get back in my truck, and drive another 25 minutes back to the courthouse. I give them the money. It's got to be over now, right?

"You don't own it," they tell me. "We still need the seal from the county clerk. And he's out at lunch. We'll call you when he's back.

"And by the way... the bank still says it's going to pay."

Talk about anxiety! I've got nothing left to do, though. So I get back in my truck and head home.

About halfway there, the courthouse calls... The clerk had sealed my paperwork. The house was mine.

I paid around $220,000 for it. Its appraised value was more than $400,000.

Now that story might sound too fantastic to you. It must have been a once-in-a-lifetime opportunity, right?

Not at all.

The truth is, I bought multiple properties on the courthouse steps during those years. And I learned a key secret to success in real estate back then, too...

The simple reality is that if you want to do this sort of thing yourself, you've got to be willing to roll up your sleeves. You've got to jump in and work a bit. Take this opportunity as an example...

First, I had to check my local property appraiser's website to see what was going up for auction. Once I found something interesting, I did the homework on the property, figuring out what it was worth.

During that step, I knew there was only a small chance my plan would work – but I went ahead anyway. I prepared myself for auction and showed up when I needed to.

The deal could have fallen apart a dozen times. But if I hadn't rolled up my sleeves and put in the effort, I'd have never known for sure.

There really isn't much secret beyond that. If you want to make real estate investing work for you... you've got to work for it.

Then, when you come across something that is truly amazing... don't skip it. Don't delay. Take advantage of it.

Good investing,

Dr. Steve Sjuggerud

Editor's note: Steve recently hosted a special online broadcast to explain why real estate is booming today. He believes right now – in the wake of a global pandemic – we're getting a "perfect storm" for Americans to invest in this lucrative asset class. And it's time to act...

Steve's brand-new project is an easy way to do it through the stock market. You'll even have the option to get in on private real estate deals – something we've never been able to facilitate before. And for a short time, you can become a Charter Member for Steve's new service at 66% off the normal price. Watch a full replay of the event right here.