Forum Replies Created
Hey There,
Catch 22 really:a. How much do you value time?
b. How much do others feel your time is worth?
c. What credibility do you have (reputation etc)If the credibility is not quite there then you may need to adjust your fee to attract business and then as your REP goes through the heavens… (and demand increases) … so does your fee structure.
Hope this put a different light on hte subject? :o)
Cheers,
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.bizHey all,
At the end of the day it ain’t over til the paperwork is signed at exchange anyway. – Even if it does not pan out… you lose the deposit only… no-one can force you to purchase.
1. I usually put terms that pertain to valuations meet lenders requirement rather than funding conditions… as if the vals do not measure up….. the money just don’t flow + it is somewhat illegal for agents to sell overvalued properties.-So you are saved from buying a lemon in most cases!
2. I mostly only put no more than $1,000 of deposit (including exchange) on property anyway so if it really goes to the wall…. I can contol the loss and walk away.
3. If the deal is that good… then it should be simple to flip the property anyway (however I believe that in some states of Aussie you will be hit with stamps and capital gain from your price to the new flipped price (even if you have the nominee clause in the contract).
4. Sometimes an option gives you more flexibility and gives you 42 days minimum to sort it all out before you lose the option fee…
I suppose it comes down to….. is it really a good deal? or is it a non money making transaction.
Exit strategy is paramount in any transaction!
Hope this helps,
Cheers
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.bizHi all,
You can also secure the property on an Option and either flip the option itself….. or nominate the buyer in the paperwork. This way you can still walk away from the whole thing if it turns sour and you ahve only lost you option fee.
Cheers
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.bizHi there,……
All I acan add is …. it is 80% attitude and 20% knowledge….. if you make mistakes it is like being a kid again ….. what didyou do when you craped you knee while running flat out though the house when you were young???? Even when the mum or dad gave you a lecture and revved you up???? thats right ….. you forget about it and keep trying to run as fast as you can …. but try not to trip next time.Best of luck
Kiwi!Looking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.bizHey there,
– You can set up a private agreement (just like a joint venture).
– You can set it up in the terms of the sales contract to be paid by purchaser at settlement or at exchange.Sometimes it depends which legal instrument you have secured the property…. it can be as simple as signing over an option or a lease option and the new nominee pays an option fee (any price agreeable).
The beauty of these all are that some legal instruments have more flexibilty than others but choices are many….
Have fun.
Kiwi
[baaa]Hi Paul,
Couple of quick ideas.
1. find out how much your current home would rent for and get a capacity test done to see how much a lender will allow you to borrow against.2. Rent your house out and secure a property like you are looking for with a lease option.
Thanks
KiwiHi Chris…. if you are looking to go to uni….. you could secure a lease option and get some flat mates in to cover the outgoings so you can secure the property later when you have some stable work/credit history. – or assign it to get some quick cash to give you deposit for a better deal.
I am teakhing my 14 year old Daughter how to do this so she can get started ASAP
Cheers,Hi Brizza,
Also, I have put down $1000, the 5%/10% deposit, when is that usually expected to be put down?If you have negotiated correctly then the $1,000 is all you pay…. however if you have agreed to pay the 5% then this is payable at exchange (signing of contracts) BTW you have every right to change terms and renegotiate prior to signing anything.
Cheers
KiwiRent Divide by 2 X 1000 = house price.
eg
Rent: $200 divide by 2 = $100
multiply by 1000 = $100,000Remember… this is a preliminary ” is this property interesting enough for further investigation?” technique. If you are getting the house/unit/land for less than that figure then all is good….. however sometimes soft settlemnt terms make all the difference to sweeten the transaction.
I personally started out with sitting down and working out what I really needed and what was what “Robert Kiyosaki” terms as DOODADS – Once those were all listed I followed John Burleys Debt Terminator plan and then invested in an AIP (automatic investment plan) Once that was all in place and ticking along I started to work on personal education (well that was where I started actually) then started testing and experimenting with property and shares (to diversify……. The long and short is…. “.:it takes time and there is no magic pill to the millionaire status:.”
Now my AIP is growing and giving good solid returns of 14.5% returns average…. and the best thing is … every week I get closer to the magic first Million. (and my chances increase every week where as a lotto ticket buyer still faces that same odds each week)
Good luck and good on you!
Cheers
KiwiAlso depends on what type of renovations you are intending to make and what hte perceived value increase will be. – sometimes both the budget and timeline blows out on renovations and the return semms not worth the effort.
I have an idea or two … however I need to clear up a couple of things first … could I ask a couple of questions?
1. what would the rental be if rented out?
2. When you state the loans will be called in on in a couple of months are you meaning if the payments were not serviced?If the house did not sell…. but your friend did not have to worry about the payments (it is covered) for one loan…. would that ease the pain and allow life to go on?
Cheers
KiwiI have had vendors agree to pay my stamp duty out of dispersment funds at settlement…. This can be done two ways…..
1. Straight out contract notation
2. increase sales price (as long as it will value up) + contract notation that vendor will pay my stamps @ settlement.“always seek legal advice”
If the contract gives you enough time to realise the capital gain….. then it sometimes is a good opportunity… even if you are currently over paying (within reason) for the property.
“Better to have something on the go than to have nothing at all”
Cheers
KiwiHi Ricksta,
Here is an idea…
Get a property on a lease option for 36 – 48 months. These are the following benefits (if you negotiate the contracts correctly):1. Some of what you pay will come off the house price if you buy the property.
2. You get control of the property
3. You get the capital gain if you buy (but pay the old agreed price)
4. You get to rent it (if you choose to) out to someone else at a higher rate than your agreement commitment amount.
5. You can sell the property if you wish to and profit from the higher price difference between your agreed sales price (in your contract) and the new sales price.
6. If you choose to….you can simply onsell your option (for a fee of course)
7. No stamp duty is payable.
8. No bank loan required – WOO HOO
This gives your time to allow your current financial situation to change and gives you plenty of “options” to exit and walk with the profits looking for hte next deal!Just a thought folks – best of luck!
Cheers,Kiwi[baaa]
Hi there,
2 You can advise the original vendor that you wish to have the option rescinded as you have found another purchaser. The new purchaser then goes straight to contract with the original vendor and pays the full price (original purchase price plus option price) and stamp duty on this amount. You don’t get your part of the money until settled. This sometimes incurs extra gst which you have to pay on the difference in purchase prices.I think it depends on how the tax department sees it and how your accountnat has put it all together…. I believe you can sometimes just pay tax on an income realised…. as not capital gains tax should be payable by yourself since you only had control of the property with the right to nominate a purchaser & since you never owned it at all it is not classified as a profit via capital gain. – any comment anyone on this?
Cheers-Kiwi!I am not sure on other states…. but if in NSW you can just secure the property on an option and then appoint an agent to sell the property… if there is profit in the deal then you should sell this quickly and you do not have to wear the stamps and capital gains taxes…. however you will have to add the profit to your income statement at the end of the year so that the wonderful ahnds at the ATO can have thier share.
You could possibly secure the property on an option and then go and find a buyer. This way you get control but not the risk and it is a good learning curve also. I did this and made $4K profit (minus $1.00 option fee) for 45minutes work.
Cheers,
KiwiI do not arrange the deal with the agent. I make the business arrangement with the Principal of the business -(The Big Kahuna )
The Big Kahuna… generally has a wider scope of vision than an agent and can still see business growth through both sales and property management.
… and let them (together with me of course) explain and go through the process of education of the complete staff within the organisation.The 1.5% is of the sale price of the property.
and as the weekly amount of most of the properties I control bring in between $395 and $680 weekly… they seem to like it and will work with me to get more on the books with them.
Cheers,
KiwiRobert,
Firstly I am not your MATE! as mates respect one another… and secondly:Take it however you like. If you want to live in your little fantasy world of judgement…. then so be it….as long as you are happy.
I am not getting into a childish discussion of mine is bigger than yours. – peace… and leave the judgment to the readers.
Unlike others I am not trying to be a great hero… just telling it like it is out there in the real world.
If you have some constructive feedback rather than trying to strip people of dignity and belittling people then I am happy to discuss… otherwise….. Choose another pastime to waste your time with.
KIWI! – Kia Toa Kia Nga Kao Nui
