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Awesome stuff. Thanks guys.
With this particular agent I have found it difficult to get any information about the vendor out of him, ie why they’re selling (mind you I haven’t had any personal contact with him yet). He also said he can’t give me any information on other offers or even how much other properties have sold for in the area.
The property has only been on the market for a couple of weeks so I guess that could explain it a bit.To meet the criteria of the 11sec solution I need to get this property for $65K but you know what, after speaking to others and reading posts I no longer feel bound by this rule. I don’t want to get hung up on it and miss a deal that still could be pretty good. This property does need a repaint and some repairs so I figure maybe I can get it for a little less than the asking price.
I’ll keep soldiering on and learning heaps as I go.
Thanks once again.
Lizzie
EnjoLady, when you made the “official offer” did you put it in a letter? What did you specifically say?
After you made the offer did the Agent then send you the contract, which you reviewed with your solicitor before going to see the property?
Is it a necessary thing to get the solicitor involved at this early stage before even viewing the property? I guess you think it is.
Did you conduct this tooing & froing over the phone with your solicitor or in person?With the building inspection did you simply arrange that over the phone with the Real Estate Agent allowing them access on your behalf? Would there be any point in trying to arrange the building inspection on the same day that you inspect it or do you think in this case it would be better to have the building inspection already done?
Sorry to seem so inquisitive, but being a newbie I have lots of practicle questions that seem to come up.
Thanks heaps.
Lizzie
I’m not a wrapper so you can except or reject this.
“I invest in Real Estate to create win-win situations. I get capital gains and an income while helping others, who may have a trouble getting a loan, into their own home.”
Lizzie
Thats awesome! Well done!
I’m glad you shared this with us all.
I too am a newbie and very much feel the need to inspect the properties and the area before I buy. Maybe one day we’ll be like Steve & Dave and be able to put in offers without necessarily seeing the property itself but safe in the knowledge that we know exactly what a bargain is in that particular area.
Thanks.
LizzieThanks for your replies, most helpful.
Do you think that, being my first property, I should attempt to do initial repairs myself? EnjoLady, would you do this or would you hire someone to do it for you, keeping in mind that this is my first property but also that it’s 4 hours drive away?
This is a bit of a general question that will perhaps be difficult to answer if you don’t know anything about the property, but the asking price is $78,500 and I am planning to offer $60,000 to $65,000. Do you think that this is a reasonable thing to offer almost $20,000 below asking price? Will I possibly get laughed at? If so how would/do you best handle that sort of situation? I guess you just know what your max is and stand your ground. After all every offer must be put to the Vendor no matter how unrealistic it might be, right?
Thanks.
Lizzie
Thank you guys. That info has really helped.
I guess it really pays to round up when number crunching so you can be aware of the worst-case-scenario.
Thanks again.
LizzieDale Gatherum-Goss is your man. He owns property and has heaps of knowledge about trusts, investing, tax etc. He’s located in Kilsyth, Melbourne.
Hi Kate,
I too recommend Dale Gatherum-Goss as a switched on accountant to add to your team. I went to see him for the first time last week and was very impressed. He has a wealth of information regarding Trusts and has written a book called “Trust Magic” which is incredibly easy to read and full of great info. He also owns properties, which is a good start.Hi,
It’s all fine and dandy to say “buy some positive cashflow properties”, but I still don’t quite understand how you can stop from reaching a limit or plato with the amount you can buy & borrow.
Is Steve’s idea of dividing the property income into thirds the answer?
– 1/3 back into property
– 1/3 into lifestyle
– 1/3 into capital gains ventures
What do people think?Hi,
I take everything you guys have said on board and I’ll tell you the reasons why I decided this would not be such a good deal.
Although the agent could have a motive for telling me all this I still think it was valuable information. The property’s located on the edge of town in a housing commission area with a 5 min drive to get a litre of milk. It has been vacant for 18 months and the agent said it will go for $35,000 but would need at least $10,000 spent in renovations. Even then you would only get $80pw rent, that’s if you can get someone to rent it at all.
The agent suggested a house in the town centre would be a better investment. They can sell from $40,000 – $60,000 with a rental return of $100+pw.
I guess you need to weight up the situation for yourself. Keep in mind that this is a small rural town of only 3,000 population.
Any opinions?
Lizzie
Hi,
I finally got onto the local rental manager who was, as Cookie says, a pleasure. I have established that this particular property would not be a good one to purchase as a rental for various reasons. However I discovered that there are properties closer to the town centre that are much more desirable for tenants yet still at a great price.
Long story short he has my details and understands where I’m coming from and what I’m interested in and said he’ll give me a call if any thing comes up. Good result, even if not a purchase.Lizzie
Thanks Michael. Rental waiting list, another good idea.
This might sound stupid but where would you start at this point, to source potential tenants – keeping in mind that I’m a newbie (with no idea).
Would you get information from the local agent about who’s on the waiting list and contact them?Lizzie
Thank you so much for such a helpful & prompt response Brent.
When you said to ask for a rental listing I thought to myself “of course, how could I have not thought of that?” Sometimes it just helps to hear these things from others before it really sinks in.
The obvious way is to ask the agent but you can’t be sure that you’re going to get a true & accurate picture.Talking to the locals is a fantastic idea and it sounds like you have a real knack for it. I guess that is a skill that comes from lots of practice. My only dilema is that the town I’m looking at is about a 4-5 hour drive from where I live. Talking to the locals might not be so easy.
The deal itself sounds almost too good to be true, and it just might be. See what you think?
It’s a 3br wb house up for auction and the agent is expecting to get between $20,000 – $35,000! She estimated that the rent could be $80 -90 per week but has referred me to the local agent who handles rentals to get a better idea. As of yet I haven’t been able to get on to him directly but am hoping to hear from him today.
Apparently he handles 50-80 properties, but we are talking about a town with a population of 3,000.
The house itself needs a little work but basically looks in pretty good nick, especially considering the price.What do you think of this scenario?
Too risky for a newbie? It really all hinges on the rental market in the area, doesn’t it?Thank you once again and if you have any more words of wisdom for me please don’t hesitate to share.
Lizzie
I have my first appointment with Dale GG next monday. I found out that he is quite a busy man so I suggest you get in quick as the word is out on this “gun-accountant”.
Great tips Michael & Kaye. Thank you.
Again, it’s all about people. After all, we do need the tenant to keep this whole ball rolling. How much smoother does everything seem to run when you try and make it a win-win situation? It’s a shame that Landlords have received such a bad rap in the past.
On the “hot-water thing”, could you say to the tenant “Sure, if that’s what you really want. However, you’re rent will have to be increased to cover the costs.” Does that sound like a viable option?
Thanks again.Buying a “property with a twist”, as the Renovation Kings would say, is the way to go no matter where you are buying.
If you can find a property that’s perhaps a bit run down, in need of a coat of paint, then you may be able to get it for a lower price. Not only that but a reno could, if done correctly, can increase the overall value which intern can increase the rental capacity.
Property investing can be done in any economic climate. After all, we all need a roof over our head and good people live everywhere, not just in the CBD.Hi Steve,
I think you have hit the nail on the head when you said you didn’t have enough time to properly debrief us about the game and it’s objective.
I do feel better after reading that we were meant to start with a plan as that is what we tried to do. In the chaos we decided that because we didn’t understand exactly what we were doing we’d go and seek advice from the accountant. For a fee of $500 accountant Julie helped us out heaps. We then knew that the first port of call was the tenant – it all comes back to people first, doesn’t it.
Thanks Steve.Lizzie
P.S.Hope you don’t think that third time round you got the duds.
Soooo glad to hear that I was not the only lost soul during “the game”. I too have a suggestion like Jae. Perhaps a dialogue/role play between people who knew what they were doing, (ie Steve & Dave) could have been more beneficial.
I did manage to match the correct tenants to the right strategy but didn’t get much further than that.
Thanks,
LizzieHi,
Like Nessie I’ve been busy on the phone today too, inspired by the weekend. I’m off to look at a property this afternoon on auction this weekend, not quite on Nessie’s scale but you’ve got to start somewhere.
It feels good to actually be doing something and just giving it a red-hot-go.Hi All,
I’m a forum Newbie, so be gentle with me.
A large portion of my family attended the APIM on the weekend. We found it a great source of information, however taking action is entirely your responsibility. I have not yet bought a property but I picked up on serveral tips that will be invaluable when I actually do. No one can do this for you, you must stand on the edge of the cliff and jump off, so to speak. Something for me to overcome is the fear of not getting it all right. I need to be willing to make mistakes, after all that is the way we really learn best.About the weekend – Steve, you are a natual at public speaking. You have the great ability to bring a complex message down to earth, thanks.
The Reno Kings are an awesome due, it almost felt like I was at a Comedy Show. They were so entertaining yet so informative and full of information (as I discovered at the round tables session).
Stuart O’Neil, what can we say? Is he a goer or what? Although I might not necessarily “do-his-thing”, as such, I did get some invaluable tips out of his session.
I found the Lease Options a bit confusing but the dialogue at the end between Steve & Tony really helped to clarify.
My one criticism would be of the “game” at the end of Sunday. Being a newbie to investing I found it frustrating and confusing. I hope it wasn’t your intention to make me feel like a bit of an idiot but I did actually feel that way. Am I the only one who felt this way? I didn’t get that impression last night but let me know.
Thanks for reading.
