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Go to the local pub (or get someone you know to go to the pub) at knock off time have a few beers with the locals and you’ll soon get a start on your contacts – better than any yellow pages in my opinion.
Dazzling, that is a very interesting excercise you completed with your parents and an eye opener for me.
Certainly food for thought. Sometimes you need to questions the status quo and really look into the value of life propositions we take for granted as true.
I know I read your post a couple of times – I hope others do too.
Just remember that if you bail him out he has really learnt nothing from this.
Has he been bailed out all of his life? If he gets bailed out now will he then move on to an even bigger blunder next time because he has not learned his lessons this time?
These are the questions you need to ask yourself when you move forward on what to do here.
Sounds cruel – and only you know the full situation – but I would be tempted to let him jsut sort this out himself. If he sells and makes say a $10,000 loss and his girlfriend makes another $10,000 loss after all this is said and done, maybe the time process of paying down that debt will enstill and greater sense of value to their money and save them from greater financial mistakes later in life when the consequences are greater.
Think about it. How would you actually ‘help’ him the best?
Or are you ‘helping’ yourself by bailing him out and keeping the scorne of the rest of family out of your life.
I know what I would do.
If the vendor has told the agent that they do not want to see any offers below a certain amount then they do not have to submit offers to vendor below that amount – that is my understanding.
If the market in general is buying properties that are at a 5-6% return on average then really there is no reason why the vendor would consider an offer that placed the property at a 10% return.
As for finding desperate sellers look for properties that have been on the books for a long time, agents from out of town listing the property (ie vendors have moved ) there are little clues – but it will be very difficult to go and find a property that is +cash flow without you doing something clever to the property.
You cannot force an agent to put forward your offer. If you firmly believe that an agent is withholding an offer you thing the vendor should see then the only thing you can do really is knock on the door yourself (assuming they live there).
Otherwise, if the agents says the offer is too low to put to the vendor then just move on. It probably is too low.
Finding +cash flow now is very difficult. Have you thought about easy ways to improve the property to increase the rental and make it +cash flow? Maybe start looking at opportunity type properties like that.
Have you looked at the web site renos.com.au by the Reno Kings? If you are intersted in this avenue this is a good place to start.
Good luck.[thumbsup2]
It is a possibility that they can lose something – especially in this market and if you have not done this before – I think they are wise to be cautious.
My suggestion is to look for other money partners who would look at the deal carefully and only go with it if they are convinced it is a goer.
Look for cash rich time poor people you know – eg professional people – doctors etc but they will expect a higher interest return on their money.
If you cannot get any one of these people to support you on your deal then it might be a good thing that you don’tinvolve your parents in something they know little about.
If the deal you find is good and financially sound you will have lots of people who want to fund it and get a good return on their cash.
The other suggestion is if you cannot get funds to do a medium sized development, then maybe start on a small house or individual flat.
I know one guy who started buying renovating and selling 1 bedroom flats a few years ago and now he’r in with one other person doing large multi unit block of flats.
So it can be done by starting small. See what you can do with what you can handle and what the bank will support you with.
I read a renovating book ages ago, but from memory it made a big deal about changing the light at the front porch – apparently this makes a great first impression without much outlay.
A soil test will tell you the type of concreate slab you will need to be able to build on it.
This will affect costs. For example, from what I know so far, a class M soil is the best type in that it requires the basic and cheapest slab. The sandier the soil and the more chance of movement in the soil means that there will need more reinforcement in the slab and hence more concreate and more costs.
The type of soil alone could add $3,000 to $10,000 to the slab costs.
Also, the slope of the land will make a difference. Again if you choose to build on a concreate slab you may need to cut out some of the soil to make it level or introduce soil to raise a part of the block. This could add more. A reasonably flat block may only require about $1000 to $1500 in cutting and leveling of the land
but a really steap slope might cost you another $8,000 I’m guessing.A builder on this site may be able to clarify
