Very eager to start,, do I go for cheap property and resell with minimal makeover or more lucrative and seek partners in property development????????? what to do??? View
10% is min profit I pay myself, I’m going by the 135% rule from Steve’s book. So basically I add 35% on to the sale price of the property to see if feasible.
If prop is $420000 then resale needs to be about $567000 leaving me with 12% approx. $50400. The 135% covers all costs including my fee of 12%.
Sorry I didn’t explain myself.
Thanks
Stefan
ATM my broker is sorting out my loans. I have just over 200k equity in my home and 20k cash. I’ll have 420k for IP to flip with 40k for renno at 80% finance. 20k cash is back up. I am a PAYG employee and earn about 110k. Wife about 41k part time.
Hopefully after a few flips I’ll have sufficient cash flow to go into a joint venture mid next year.
Before I question my broker to see her skill set, do you guys think I can purchase an IP to hold that’s neutral or positive without affecting my borrowing for the first flip?
I’m glad you understand Shiny Suitman.. You come out of reading Steve’s book with a different frame of mind. But I guess we got to roll with the times.
What about the new East Werribee Project. Near by property’s should benefit.
Definitely not Melton.. Boaganville with heaps of land and new House land packages from 249k…??!!
Thanks Jamie, good words of wisdom.
Your right and I need to put more trust into my accountant.
I like to learn from others who have achieved financial freedom from property. Unfortunately I don’t know anyone who has achieved full financial freedom, only part of.
Property investment group who make commission on signing people up for developments that promise min 5% annual growth. Proof lies in the pudding.
Brokers and Bluewealth get commissions. So if a broker gets 3% commission on 450k+, I doubt that he has my best interest at hart.
Richard have you or your contacts used Doug to create trust in order to acquire property? And is Doug a property investor?
I’m also looking for a good accountant and a like minded Mortgage Broker. One that doesn’t try and flog off deals with Bluewealth property and must be a keen investor.(Aus not USA)
Thanks
