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EKfour
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@ekfour
Join Date: 2002
Post Count: 35
July 23, 2002 - 1:20 pm
OK this one’s for you Steve. If you’re getting buyers to find the house that THEY want to live in, and you get some “hurt money” from them, why should you even worry about the 11 second solution? Shouldn’t matter if rental returns were 5% or 10% should it? I assume this should only matter if you intend to find the property, and THEN the buyer?
Cheers []
Wei
EKfour
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@ekfour
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Post Count: 35
July 22, 2002 - 2:23 pm
Fergus,
I’m assuming you’re adding 2% to the spread? What kind of cashflow are you getting from a $60k property? And what’s the back end profit margin that you add on when they cash you out, in other words, what do you sell a property that you paid $60k for? Thanx!
Cheers
Wei
EKfour
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@ekfour
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Post Count: 35
July 22, 2002 - 12:35 am
Thank you all for the encouragement. It’s much needed during this crappy phase of my life… []
Cheers
Wei
EKfour
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@ekfour
Join Date: 2002
Post Count: 35
July 19, 2002 - 9:52 am
Hi Steve,
Thanx for replying, although I think you’ve got the numbering mixed up. Nevertheless…
I’ve read John Burley’s Blueprint for Success, and it mentioned that the approach you took (at the start anyway) was to find the houses, then the buyers. OK so you’ve realised this is not the most time efficient way.
Would you advise me as a newbie wrapper to follow your later approach right from the start, ie. to get the buyers to find the house that they want? I was thinking that although it’d save me a lot of time, I do not have a track record yet, and may be unable to answer some of their questions, etc.
And finally, what is a reasonable deposit to ask for, or does it vary from case to case? Basically I want to do as high a LVR as possible to stretch my (very limited!) dollars for as many deals as possible. Just read your other post regarding being too highly geared- I’d worry about that later!
Cheers
Wei
EKfour
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@ekfour
Join Date: 2002
Post Count: 35
July 17, 2002 - 2:45 pm
I wrote (snail mail) to them just over two weeks ago, still waiting for the report to arrive in the mail. Just get your clients to give you their reports- maybe insist them do it online or something?
EKfour
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@ekfour
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July 17, 2002 - 4:58 am
Looking in Gippsland. Seriously having 2nd thoughts now, but I’m still submitting my (ridiculously low!) offers. The drive out there & back is more than enough to put me off.
Cheers
Wei
EKfour
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@ekfour
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Post Count: 35
July 17, 2002 - 4:56 am
Matthew, I’ve made an appointment with my finance broker, meeting her Saturday 12pm just before our CashFlow session. Sorry you can’t make it, but will fill you in with details. I’ve told her specifically that I need a lender which will take wraps, and she said it’s not a problem. If you can somehow get around your work commitments, give me a call; you’re more than welcome to sit in & listen to what she proposes.
Cheers
Wei
EKfour
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@ekfour
Join Date: 2002
Post Count: 35
July 9, 2002 - 12:43 pm
I was bordering on being unreasonable- offering high $30s for a $55k property. But hey, you’d never know, you may get lucky! I figured all I had to lose was a phone call and a few minutes of my time.
This is actually part of my exit strategy. It’s currently rented at $85 per week, so $50k asking price is high. I’d like to wrap it ultimately, so if I do score it for say $40k, I can use a buy & hold as an exit strategy if I can’t wrap it successfully. That way it still cash flows marginally.
Is there a standard letter that people write to submit an offer? What I’ve been told by agents is that they have a standard form or something, but I am concerned by the lack of exit clauses, so I’d like to tailor one to my own needs. Basically I want to get those offers out the door by the tens/hundreds every weekend, with an escape clause.
That way, I can spend time to analyse the small percentage that gets accepted rather than waste my time analysing all of them & submitting offers on a few. What do you guys think? Thanx!
Cheers
Wei
EKfour
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@ekfour
Join Date: 2002
Post Count: 35
July 8, 2002 - 10:21 am
OK was just done talking to an agent, and he refused to submit an offer I made on another property. Is it their obligation to submit all offers? I believe it is, but there’s no way to find out if they really went about doing it, is there?
The guy thought my offer was far too low. True, but it’s been on the market for 6-8 weeks & according to the agent, the vendor seemed pretty keen. I thought, hey, no harm trying!
Anyone else ever face a similar problem?
Cheers
Wei
EKfour
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@ekfour
Join Date: 2002
Post Count: 35
July 8, 2002 - 7:37 am
Josh, very interested in your proposal. Are you looking at some kind of commission structure to assist in this particular deal?
Normally I wouldn’t be looking at Tasmania due to the fact that people are actually moving away. But then again, a desperate seller wanting to sell at $45k a property that rents at $115 p/w, it’d pay itself off in no time. Would appreciate more details. Thanx!
Cheers
Wei
EKfour
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@ekfour
Join Date: 2002
Post Count: 35
July 8, 2002 - 7:33 am
Appreciate the reply, Steve!
The problem with approaching an agent (I think) is that it’s more than likely the agent will advise the owner with regards to price, which will get his hopes up. I want to avoid this, and of course, the agent’s fees is ultimately reflected in the final sale price.
I was interested in another property which was in a much sorrier state. The place stinks (I’d bet 9 out of 10 won’t walk in!), but the owner was firm on his $280k price because the agents have led him to believe that’s the price he’d get in order to secure his listing.
Comparable houses in the area are indeed in that range, but no one in their right mind would offer anything close to $280k. I tried at ~$200k, but was told by the agent that he’s knocked back much higher offers…
I have decided now I’m going to write (conditional) offers on whatever property that interests me remotely. I’d appreciate any further input with regards to the best way to approach this? Thanx!
Cheers
Wei
EKfour
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@ekfour
Join Date: 2002
Post Count: 35
June 27, 2002 - 11:19 am
Alf, I’m no expert on this, but -ve gearing is precisely what the “experts” teach to save u tax. But bear in mind that you are spending $1 to gt 48c back as a rebate.
I think most people on the forum are against this strategy, and Steve would provide good input no doubt. Another way which I’m sure your accountant is doing for you- is by depreciatin. Paper losses that allows u to make a deduction.
EKfour
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@ekfour
Join Date: 2002
Post Count: 35
May 30, 2002 - 5:15 pm
How does the FHOG come into play? If you’re talking about the deposit involved, I assume that you’d want a larger deposit when you’re wrapping the property to someone, so the FHOG helps?
Also why can’t the tenant get a FHOG with a lease option? Can’t he just apply for it when he decides to exercise the option to buy? Cheers!
EKfour
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@ekfour
Join Date: 2002
Post Count: 35
May 29, 2002 - 10:37 pm
Hmmm… interesting Darren! Mind sharing with us which regions you look in? How do you guys start targeting an area anyway? I was looking at a “pretty” picture of a $42k house just yesterday & was trying to find out as much as possible about the area- until I found out that the population is 300 people, the bus runs once a WEEK, there are no ATMs etc etc…
Being a newbie, my strategy is to look in country areas with low purchase price, & then start researching the area. Not the fastest way, but if anyone has any suggestions I’d appreciate it! []
EKfour
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@ekfour
Join Date: 2002
Post Count: 35
May 28, 2002 - 10:48 am
Thanx for the replies. No I don’t spend 101% of what I make; I spend about 99%! I am disciplined in a way- I REFUSE to pay interest on my credit cards, so I make sure I pay them off each month. I make just enough to get by in a job that does not offer sick pay/annual leave etc, hence I realise it’s not a way I can get anywhere. Hence the interest in alternative paths. []