Hi,
I recently posted a message regarding how to use realestate options. I now realize that it is very similar to flipping or assigning contracts in the US which I believe is a good cashflow strategy.
I have done wholesaling properties in the US as an investment strategy in the past. Some of the challenges that i faced though includes getting my buyer to look at the property for sale and have access to the property without my presence.
i found it difficult to wholesale fixer uppers to third party buyers especially if the property that I have put a purchase contract or option is in a different state or far away.
Lots of sellers are not keen on the idea of just anyone having access or ability to come in their property especially if the property for sale is still occupied or tenanted. I have tried putting a clause on the contract that allows me access to the property 24 hours and subject to approval by partner ie potential third party buyer. Most sellers agree to the contract but still on the condition that i am presently there when i show the property to other buyers. i found it a bit difficult to show the property to potential buyers if the property is again far away.
i was also limited to looking or putting a purchase contract on properties that are for sale by owners (FSBO) as properties listed on multi listing services or by realagent does not like the idea of me showing the property to potential buyers since I dont have any realestate license.
Should i expect to encounter the same challenges here in Australia if i was to use option to wholesale properties to retailers?
Am I going to be again limited to mostly for sale by owner properties and properties that are closer to where I live?
Are realestate options more suitable to use on vacant lands insteaad of houses since it is a lot easier to show vacant land to potential buyers?
Thanks in advance.
Kindest regards,
AllanAllan,
If I read you correctly, you are saying you would make up a contract to be able to access a property 24 hours a day. This contract could (and likely would) be challenged (and you would lose) as it contravenes the Residential Tenancies Act. The following infor might be useful to you:
Can the property manager, any of the agencies staff or the landlord arrive on my doorstep and expect to inspect the property?
No. The legislation is specific about the period of notice and the reasons that must be given for anyone to enter the property you are leasing.
There were two basic tenets upon which the legislation was initially framed – security of tenure and quiet enjoyment.
http://www.woodards.com.au/tenants_info.html
I believe if your contract was signed, but then the tenants didn’t enjoy the possible intrusions to their tenancy, that your contract would be thought of as unduly harsh, and the RTA would overrride.
Allan, that’s the tenancy part. I’m sure some of the other forum members will rain on your parade and tell you you can’t sell properties in Australia unless you have a RE licence :o) Although spotters seem to be able to get around it.
kay henry
Thanks so much for replying back to my message Kay Henry.
Thanks for telling me about the Residential Tenancy Act. I am still on the research phase of things. I want to get a clear understanding of the property laws here in Australia before I implement any of the investment strategies that I have used in the US.
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