Forum Replies Created
Get a couple of grand out of them before you go unconditional on the purchase. Tell them it is non refundable. If they cant understand your position, walk.
Yes Felicity their is no way around that one. Do it all on excel spreadsheet. Rick Otten has a programme for sale, while not perfect, will solve your problems. Every other wrap software I’ve seen lacks the flexibility you/I need.
Westpac recently released an Australian assumable mortgage. Minimum lend $500,000, 70% LVR, secured by the property and income it generates (IE commercial). It is only a matter of time before other lenders do it and with more attractive terms.
Looks like an impressive start to me!
I think Steve would be horrified that people arent buying because they are following his 11 second rule so strictly. They are out their, believe me. I bought a commercial property 50 clicks from Melbourne CBD last month that returns 15% plus and its only 2 years old. Cost 390k and rents for 55-60k per annum.Saw one in Dandenong recently to that returned pretty much the same, but I didnt like its location. Price was 100k for 13.5k rent.Bought a small block of units earlier this year for 100k that returns 17% in a regional town. Had it just revalued for 140k! I saw some blocks of flats on the net last month that returned 12% at full price. No offence, but I just cant understand it when people say their arent any good deals out there. There are plenty of 10% returns out there, but I dont do them because their are better returning ones around the corner!
Edited by – [email protected] on 06/11/2002 3:44:58 PM
No Peter, you wont find people are lowballing to get 50k properties. The real estate market has moved in price, but the rent has stayed the same. Your deal looks ok to me as a straight rental. Dont get to wound up about 11 sec rules or you will suffer analysis paralysis. Just go and do it.
Jason. Im in melbourne. I am starting to find the running of ads very tedious indeed and am looking to automate it, by having a recorded message spelling out in fine detail what I require. If I get one more investor looking to rent the property out, I will scream!!! I remember the early excitement of taking lots of calls, but this becomes very annoying, especially when you are about to tee of a driver on the golf course. Automating it, like what youve done is definately the way to go.
Jason, why dont you get a third party company like Ezypay to collect the money. Heaps cheaper than an agent. $2.00 per transaction.
No, Bruce the opposite. I want to find the people who have bigger deposits, but to find these ones I have to take alot of calls. I dont want to put a minimum deposit of x—- required in my adds either. I’ve been screwed a couple of times, mainly with people who have little cash deposits.
Edited by – [email protected] on 27/10/2002 8:18:16 PM
I think what Jason is trying to say that it is all well getting 60 phone calls, but most of them (59) will be either tyrekickers or deadbeats! I think Joe Arlt in the USA (240 wraps plus) has stated that for every 100 calls, he closes 1 house deal. If you are giving the house away with a FHBG only, your strike rate will be higher than this. But if you want the wrappee to put down some decent hurt money, be prepared to take alot of calls.
Edited by – [email protected] on 25/10/2002 11:20:05 PM
One very successful wrapper borrows the deposit monies from private investors and pays them back at 10% + interest. This strategy will work for a short term 1-2 year wrap. I wouldnt recommend this for a beginner though who has very little cashflow to play with.
You dont have a legal binding contract until both parties have signed. Verbals mean nothing.
Ekfour. I actually did buy a house in Horsham and wrapped it at the same time this matter was on ACA and in the melbourne sun. I still got many calls from people desparate to get into their own homes. I got a couple of calls from people who had been so called taken advantage of and they still wanted to buy a house from me! Sold the house pretty easily too. One agent told me I was being unethical, others couldnt care less.Keep trying as their is still a demand there. I decided it was a bit to far for me.
Stick to the To Let sections of the local newspapers. It always draws a very good response. Some weeks you will get a trickle, some weeks you will be flooded. Change the wording if you aren’t getting many calls. I’ve personally found, the bigger and dearer the add, the less calls I get. Keep it short and simple.
I’m not going to name the company involved, but it was on ACA 4 months ago and it was involving houses in the Wimmera area. As Grizzly Bear says, if people are stupid enough to buy a house in a town full of cows in the middle of nowhere, sight unseen, they deseve everything they get. But offcourse ACA like to stick up for the silly battlers of this world and the company involved were made to look like rip off merchants. If they can buy houses dirt cheap, whats wrong with this. If I buy a house 50% under market price, Im certainly not going to give it away.
Wei. I didn’t mean to imply that you were unprofessional.[
]You will find that it is Bills agency, so their is no point going over his head.
If they were a problem tenant, would you really want to deal with them?
Walk away from it. Dont cause problems and involve another agent. You will burn yourselves very quickly. I have had some agents in that town who refuse to sell homes to certain wrappers because of unprofessional conduct. Dont add your name to the list.1) Is there any difference between a real estate broker and a real estate agent? No
2) What’s LVR and what does it mean? Perhaps it would be useful to have a glossary of frequently used acronyms – just a thought.
LVR = Loan to Value Ratio such as borrowing 70%, 80% or 90% finance, against the value of the property.Well done Fergus. Its a much safer deal if they have hurt money as a deposit. Stick to your guns and wait for the right people to come along who have a descent deposit of their own.
I have done wraps both ways and I would say I prefer buying the house first. Call me cynical, but I dont believe I get the best price for a property if the agent knows whats going on.Ask yourself the question. If he is a millionaire, why is he flogging this to you? How much commission is he going to make? It could make you a bucketload, but do you have a cystal ball. Many southerners have been burnt bigtime, buying high rises on a holiday. Stick to the beach!
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