1st renovator

Hi Freestone, the first question i would ask you is how much would the 2 properties b worth after your reno makeover.

That way u work from the end back to your purchase price + costs and hopefully it is a profitable experience.

I have a saying (well hundreds but) “if the numbers don’t work don’t rework the numbers”

Can i give u a purchasing tip. Write down a list and costs of all the defects, take it to the owner and negoiate a better purchase costs based on the DEFECTS … get my drift?

resiwealth

Resiwealth,

I’ve heard and read about that purchasing tip many times before – but unsure if it has ever been successful.

If a place is listed for $ 130 K and the Buyer reckons it has $ 15 K worth of defects, the typical conversation goes something like ;

Buyer : “I think it’s worth only $ 115 based on all these defects.”
Seller : “We agree completely with your list. If the property didn’t have those defects we’d be asking $ 145 K….now are you interested or not ??”

At this point the Buyer either walks or screws up the list and gets back to serious negotiations.

That’s been my experience anyway – both standing in the Buyer’s and Seller’s shoes.

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Aside from doing the figures, I look for the “best shell”. Cosmetic is easier to fix than structural so the best shell usually reduces costs. All depends on the final figures though.

PK