Forum Replies Created
If you have call options on the blocks, you then have a financial interest in the properties so I believe you can onsell the options either yourself or via agents. I would be checking with some local builders to see if they are interested in the blocks on builders terms (also a type of option). You can negotiate for them to pay you a commission when they build the houses and you get two payments from eack of the properties that way. If in doubt, check with your solicitor.
Hi Justine,
You can certainly do deals with no money down if you have other skills to bring to the table. There are many people who have money but no time so if you have the time to source and create a profitable deal for them, you should get paid well for your effort. There is a lot of work involved and you must be prepared to work hard and learn as much as you can as quickly as you can if you are going to do no money down deals. There are a lot of courses out there to choose from and you won’t learn everything you need to learn from one person. I suggest that you spend your time attending all the free and low cost property seminars that you can and decide what area of property investing interests you the most and then get to know that area very, very well. At some point you are going to have to spend money on your education, so I suggest that you put aside a set amount each week into an account so that when you find the right course or the right mentor, you can afford it. In the meantime, keep learning all that you can, take action on what you have learned as much as you can and have FUN! Dream big and look for the opportunities that support your dreams.
Cheers, Fran
P.S. One of the simplest ways to use no money is vendor finance. This is where the owner of the property you want to purchase, leaves at least the deposit amount in the deal. As long as you can service the loan at 100% finance this shouldn’t be too hard. Tips: You usually have to ask lots of vendors before you find one that will do it. You will need a good solicitor to draw up the correct contacts. Perhaps look at rural areas where the purchase price is not so high and find a property that you can add value to immediately to increase your equity. Hope this helps.Hi Ninh,
I definitely agree with Paul. You need to work out your strategy longer term. What is it you are wanting to achieve by investing in property? Is it capital gains, cash flow or both. Do you want to eventually replace you or your wife’s income with positively geared property? Asking yourself lots of questions will help you sort out where it is you want to get to because if you don’t know where you are going, how will you know when you get there.
With investing of any kind I believe we need to start with the end in mind. So I always have a 10, 5 and 1 yr plan. I then break my 1 year plan down to monthly goals of how I will achieve each piece. I work backwards from the big picture of what my life looks like when I have reached my goals and then I can fill in the steps to how I will achieve that. I only need details of what I need to do in the next month or two to keep me on track. I like structure and to know that I’m moving towards my goals. Hope this helps.
DLUG – Double lock up garage.
Hi Carlin
Contact Heidi Doe, Kylie Rodda, and Helen Kaminski on Facebook. They are all into property investment and development and I know they are members of different groups in SA and may be able to support you. It’s much more fun when there’s at least 2 of you sharing experiences. All the best.
Wow a duplex! Fantastic!!!! Can u tell me your state and general location as I may know of a builder if it’s QLD or NSW but otherwise I suggest you look for builders in the area. Research their quality and house plans. Talk to them about costs to build what you are wanting (maybe turnkey price with floor coverings, fences, landscaping, etc) and tell them what you are doing and ask if they would sign a builders deed to pay you a finders fee for building one of their houses. I’ve had no trouble at all finding builders who will do this. You will need a savy solicitor and if you are in NSW I can give you the details of mine.
Great work!
Ooops! Forgot the DA costs and surveyors, so maybe another $2K depending on the council. Cheers!
Hi Intrigue
Congrats on deciding to get creative! The more creative you get the better you do. I have a few questions for you:
Do you have a contract to purchase the land for $138K?
What is it currently worth?I use options to purchase property but I wouldn’t purchase an option off someone unless I could make money as well, so the land value would have to be well over $160K now to make it worth your while. I always look for the win/win/win opportunies. The vendor, the purchaser and me. Here is one of the ways I would go about it. I could offer to option the block for 6 mths, while I get a DA (development approval) for a house to be built. I would offer an option fee of $500 but offer a contract price of $140K so that there is a win for the vendor. I would try and find a local builder who would pay me a fee to build one of his houses on the block. This is a win for the builder and me. Then I would put the House & Land package with an agent to sell for me while I got the DA approved. I would have to pay $500 option fee, solicitor’s costs for option agreement and contract – $3000 – and may be able to squeeze $20 -30K out of the deal. This is a hyperthetical because I would need to know the location and be sure that there is a market for the H&L and the ability to make the profit.
There are possibly lots of ways to make profit from your situation. Hope this idea helps. Feel free to contact me if you need more explanation.
Hi there It may be difficult to find positively geared property but not impossible. You may be able to find a property that you could add a granny flat to and add the extra value. Often rental returns on the cost to add the GF allow the property to move into cashflow positive territory.
<moderator: delete advertising>
All the best!
Hi all
I have done Carly’s 3 day bootcamp and from there joined her Elite mentoring program 18mths ago. It has been exceptionally good. I have to say that I had some property development experience with subdividing, dual occ’s etc before I did the course that but I learnt about the importance of feasibilities and I have no trouble finding the 20%+ MDC sites. Having also done a property options course it is simply a matter of being able to talk with a vendor, to find out what the problem is and how you can fix it. If you can create the win/win/win situation for everyone, you will be able to make it work. I now have a 5x 3bd T/H site under option while I organise the DA. Knowing how to do a feaso, allowed me to show the vendor why it only worked at a certain purchase price. The other things I have learnt from Carly is how to be creative around financing the deal which may also allow you to create a workable deal where there was no deal.
Enjoy the property development journey and if I can be of assistance don’t hesitate to get in touch!
Hi IDH
I have a builder who could quote you if you are in the Bris/GC/Ipswich area. You can email me if you want me to pass on his details at [email protected] All the best!
Hi all
Paint definitely and in particular the latest look is to add 2 painted feature walls in bedrooms. They need to be walls that are connected (if that makes sense) not opposing walls and a dark/rich colour is good. Just adds a WOW factor. Painitng should take more than a couple of days – a week at the most. Fresh carpet is good too if needed. You can often get end of rolls really cheap from carpet places. Dishwasher if you can, air conditioning too or maybe just fans throughout. If you can allow pets (body corp may not let you) you can charge another $10 -$20pw just for that. Easy rent.
Get a quantity surveyor to go over your unit so that you maximise your tax deductions. It’s def worth the once off cost ($3-400) cause it’s also tax deductible and will be a 5yr schedule on depreciables plus any building depreciation if it’s less than 40 yrs plus they can back date it for tax purposes if you have not claimed any of this b4.
All the best!
Fran
http://www.nakedtruthrealestate.com.au
