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The house does not look to bad on appearances. It’s not a very clear photo though. Looks like the fence could do with replacing that’s the first thing that came to mind and not sure about how necessary that tree is.
If you we’re going to do something to the house front then maybe a tidy up with a new paint or just touch up paint around the edges, cement steps, the red bricks could just be painted and or bagged as there is not much to do. I would probably just try paint. etc.
I’m looking at deals that will rent positive cash flow from day one. Secured one and the other needs work til +cf, there also one’s that can be renovated and sold at anytime when ready.
If they are houses that are renovated and all done to the last finishing touches then agent are confident of buyers in the 140k-200k range. Least that’s what’s moving the best if any. So I’m targeting the low-to-middle range buyers.
I subscribe to the school of thought that you can make money in any market provided you find the right deal and the margin is there with room to move if the market changes. This market i am in right now is sluggish and slow houses sitting on the market for a little while but in the next year demand is going to increase because of the macro market to do with new long term jobs and housing demand. That’s also the plus and the upside i’m aiming for is this market.
It's an idea that can happen…if you needed to know that for re-assurance.
And keeping it in simple form. I would;
Negotiate the buy in price and terms as best you can i.e long settlement terms, excess early to perhaps renovate the existing property to add value and or to increase rental return.
A corner block might be advantageous as it ia better when sub-dividing because a drive way for the second block can be installed around the crn.
Be careful with thorough research of the numbers, comparative prices of other properties similar and any other pitfalls to do with development costs for the next person as that may prevent them from buying when you come to selling the block.
A chat with council or a builder or an Architect is what i would do first before buying anything to show them the block and tell them the idea of what you want to accomplish first along with all the costings thoroughly with worst, best and average case scenarios in the numbers.Others will give you some more ideas. Above all I would say "Go For It' you can make money if done right. Make sure you do lot's lots and lot's more research and know your area and market. Come back into the forum and tell us what action you made. There are lot's of dreamers around. Are you the difference and take action to succeed in what you want to achieve?
There are many people that talk about ideas and they like the idea of making a profit and return in real estate but there are few that do the leg work the hard yards or whatever it takes to 'make it happen'.
Thanks mate we're getting there.
I need to give the site a bit more time to get organized as it was made in a rush because of a few renovations and some other things that have taken priority.
PART 3 is out today also part 2 for anyone that missed it!
Still nothing about the numbers or anything that you really want to know. Tipical API.com come on lift your game!
September API magazine is 'FROM 0 TO 20 PROPERTIES'. This is strangely a title we are almost familiar with
.Hi Adrian and Amber
I like your web site. Unfortunately i could not get the audio to work.
Anyway my question was…is 'Joint Ventures Made Simple' a book to read?
50/50 was the general norm I thought. But I have also heard of a simple percentage back for there money invested. i.e. 20k over six months for 15-20% return.
I would suggest if going the 10-15-20% return…whatever you think is a fair thing for each deal….that you negotiate that first as deciding to go backward will be harder to then offer 50/50.
It depends on who is investing the money some hard nosed investors might go for the idea of 12% as a return. I think 15-20 is more realistic for me but some i know will not invest unless it's 25% at least or better.
Certainly don't make it unfair for any given persons circumstances as that will only push away people that might be potentially interested and also word of mouth that they might tell other people.
Just add me to:
Skype:jaffasoft
MSN:jaffasoft
Yahoo Messenger:jaffasoft2I say download and install Skype.com because then you can ring up and talk for free pc-to-pc if need be sometimes as well as chat.
I'm not actually in those areas but I'm a traveling man
.I am doing one deal a.t.m that will make 25k and yesterday signed on another deal that will make i think up to 30-40k. I have another one on the radar but have not done much if any research on at all but these are in regional towns Victoria.
I never have a problem finding deals it’s always the problem of how to fund them. And then when it’s thinking of JV’s it’s more difficult as there is not as much profit to share. I have not done one of these yet.
I should not say NEVER as early days it was difficult to find a deal. It does get easier! I find ‘finding the deal’ the good part that i enjoy now..it’s a creative therapy for me like women enjoy shopping. I can drive around in a dream and looking at real estate for hours. I actually always enjoyed going out and creatively looking for deals it was the time span between finding ones that was difficult.
I can recap and give my thoughts now after actually being involved in and doing some now days.
Front.
Hi,
Hopefully QLD007 can give you the specifics on that.CGT can vary but they say in general you should not pay more then 30% in the dollar. So therefor can depend on the trust structure, time before selling, PPOR (Principle Place of Residence) etc. QLD007 is better qualified to answer these questions.
But this place might be able to help further also if you give them a call.
http://www.sro.vic.gov.au/sro/srowebsite.nsf/Contact_Us.htmNot sure if you we're already aware of these. Knowing your exact strategy is better for tailoring a tax structure specific to your situation and every one is different.
Go to a solicitor mate because your post is already breaking the law to my brief knowledge
.If your not seeing a profit in the numbers after a feasibility study and due diligence of the project then it's good that you have been able to recognize that.
But when you do see a profit that is enough for you to want to pursue it then…have a go. Something small to start off with is probably the go and don't aim for an ego trip and think that you will just make money over night.
It takes time to settle on the property then Council Applications if needed and then the Reno can often take longer then most think and then the time it takes to sell.
It's really good that you can see projects that can't go ahead because there is not profit or whatever other hurdles. Because then when you see one that has got profit you will know to go ahead with it.
Don't expect to much profit go in there for the learning experience with something small first. That's my opinion.
Just like what I hear from most other investors of similar mindset "paying tax is a necessary evil".
I would have little doubt that it is a good thing to buy particularly if you know little about renovations and need guidance.
I think also you would probably need to keep looking for a property that fits the criteria. Looking through and crunching the numbers is all part of identifying the right deal when it comes along. You develop a filter and then when the right one is in front of you..BANG you know it's right and you take it.
That can be hard to find but it's worth it when you find a reasonable deal or maybe it will be a great deal! As for distant project management I guess it is more difficult.
Your local area would be a bit better or perhaps an hour or two traveling time is better.
These are just my thoughts!
– Bye
Thanks Matt007 for the post it's a rare one and genuine!
Take youself back and have a little rest then get restored and don't think about things to much. Then when you find that honest person it will be all worth it.
>>Would you have a copy of that issue?<<
No I don't have a copy sorry! I stopped buying API a while ago.
I'm sure there is a few in here that would have it though and might be able to give you a run down on what the article was about.
I have not got the article! But Mildura will be deppendant on the drought breaking I'd say.
I'd like to know what other reason why it could go ahead?
Not sure if Qsl007 does or has done any Wraps in Victoria.
I would contact the owners anyway. As if you find one that you do like and on the market then I often heard of people putting together a deal this way.
They want you to find the home YOU want. It all works out better if you get what you want.
Please don't double post! You need help so posting once in the Help needed forum will suffice.
And why not type in lower case.
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