hey regi

Im young and lookin to buy my first ip too in victoria

i set myself a 6 month research goal and another 6 months to find a place (on the assumption that first one is always the hardest to get/slowest coming

i read a book a month on average, on all sorts of topics to do with property and have learned SO much so far.

theres plenty still to learn but i feel confident enough to make an offer now (wheras i didnt, even 3 months ago!)

all i can advise is u start reading
if u want a list of books ive read and found hugely useful, feel free to drop me a line [email protected]

Cheers, and good luck hunting!
S

Hi guys,

I think the trick is to find a PM who is actually proactive (just how you do this, im not so sure – maybe by interviewing them, just like u would if u were offering them a job!)

I just dont understand tho, why anyone in their right minds would want to both build a property portfolio AND manage those pptys themselves! I think theyre mutually exclusive.

If it costs you 5 to 7% to get them managed by experts (and as above, youve gotta find a PM whos an expert, but im guessing it can be done!) WHY WOULDNT YOU!

I just SO couldnt be arsed, fixing sprinklers, finding new tenants, making sure the carpets are clean etc etc etc!

I think if i had to do this, id ratehr stick with my J.O.B (just over broke).

Get a professional to do it, and save urself all the hassle

” This has been my two cents worth”

HI Maggie,

Although I have had no experience with real estate agents myself, it sounds like you are dealing with a classic mode of operation of real estate agents.

My understanding is that in order to get your business they tell you an inflated price, then once you have signed the contract to list with them (often tehre is a clause that forces you to pay them a commission even if you go to anotehr agent who subsequently sells your house – in effect you have to pay two commissions!!).

Their next ploy is to try to get you to be “realistic” in your expectations of price, so they speak negatively about “the market” and your house so to “condition” you to accept a lower price.

According to my research, the only thing these real estate agents seem to be intersted in is getting their commission for doing the least amount of work!

This seems to be the way tradtional real estate agents work, so you need to be VERY careful!

All this info is in a book called “dont sign anything” by Neil Jenman an ex-real estate agent, who believes in ethical agents. You can get his book from most bookshops.

alternatively try the website: jenman.com.au, you might be able to get some info from them

Good luck!
K

Hey, Id do a ring around of some brokers, just to see what your options are!

Be aware that what some brokers say cant be done, others will be able to do, so get 4 to 5 opinions.

Set yourself a 3 to 6 month Research Project and just to find out all the different ways u and your uncle can work a deal.

Remeber, the golden rule! ALWAYS ALWAYS put your agreement down in writing!

Im going into partnership with my mum, and were planning to put our agreement in writing, just so both parties know where they stand.

Good luck!
K

Hi Vluu,

I agree with some of the ideas of the other posters, but it seems that all the responses are from an arms length viewpoint. You sound like someone who doesnt want to be too hard on someone and since this is the first ip youve bought, u are understandably nervous about upsetting anyone. It also sounds like both u and the vendor are discussing things in a “take it or leave it way”. Why dont u go to him/her, tell them how much u have to make to cover payments, include a buffer and put it in the vendors hands. “Heres my problem, this is the minimum i need per week, now how can we make it a win win situation for both of us?” Negotiate it so that you both have to give up something. I think, judging by the rent he wants to pay you, he thinks ur a bit soft, and maybe hes taking advantage of that. Show him ur sums and negotiate some middle ground. You should get ur minimum payments plus something extra. If he cant afford to pay now, he needs to give up something on settlement.

AND IN FUTURE, MAKE SURE U HAVE EVERYTHING IN WRITING FIRST!

Good luck, please let us all know what u end up doing. I look forward to hearing how u handle the situation.Cheers K