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  • Profile photo of JeffBJeffB
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    @jeffb
    Join Date: 2004
    Post Count: 11

    No problem. Thankyou both very much.

    Profile photo of JeffBJeffB
    Member
    @jeffb
    Join Date: 2004
    Post Count: 11

    Thanks Terryw. When you say 20% mark up on price this is the price you actually buy it for? I have done some sums on this and after purchasing cost you do not make a big amount on capital growth, or even on the 2% spread, but I think that it makes a good win win deal for all involved.

    I have found someone for current property now, and seem to have picked up a few people who want to discuss further how they can get into their own home. I want to sit down and look at their income etc and work out what price property they can look at, allowing for my 20% mark up.

    Richard thankyou. Is that the way you do this or do you get them to choose property and then you work out a purchase price yourself without telling them how much you actually bargained it down too.

    I can see that it will be good to tell them up front that we put 20% on the actual purchase price, on the downside if we get a good buy we still only get 20% when we may have been able to get a bit more, maybe 26% to cover purchase costs.

    Thanking you
    JeffB

    Profile photo of JeffBJeffB
    Member
    @jeffb
    Join Date: 2004
    Post Count: 11

    Thankyou for the replies.
    Now more questions though.
    If I pay full price 135k with 2nd mortgage, I have now bought the property at retail, not wholesale. Correct?
    Because of this I can’t add as much on to sell price as I would if I had bought it at wholesale.
    I assume that if this deal went ahead like this I would add a slight amount to cover purchase costs and a small profit, and just make my money on the interest rate difference?
    eg 135k + 8k costs = 143k @ 7% 30 yrs = 216 pw
    sell 147 – 12fhog – 5 dep = 135k 9.5% 30 yrs = 252
    Make 36 pw for 8k investment.
    Any comments, am I on the right track here?
    Thanks

    Profile photo of JeffBJeffB
    Member
    @jeffb
    Join Date: 2004
    Post Count: 11

    Howdy Simon
    I am interested in doing deals in Adelaide
    Thanks
    Jeff

    Profile photo of JeffBJeffB
    Member
    @jeffb
    Join Date: 2004
    Post Count: 11

    Thanks Paul
    I like the idea of them taking a second mortgage for the 20%.
    Can you tell me on here how I go about this, or where do I get info on how to set it up?
    Is it something my solicitor would know?
    Thanks
    Jeff

    Profile photo of JeffBJeffB
    Member
    @jeffb
    Join Date: 2004
    Post Count: 11

    Thanks for that.
    It seems to me that Ric’s mail is very gimmicky and so on, I am trying to read past the italics and bold print etc to read what is actually in the course.
    I have his wrap pack, which is excellent, but probably need a bit more to move things along a bit.
    I’ll think on your comments for a while.
    Thanks
    Jeff

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