Forum Replies Created
No problem. Thankyou both very much.
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
JeffBThankyou 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?
ThanksHowdy Simon
I am interested in doing deals in Adelaide
Thanks
JeffThanks 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
JeffThanks 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