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Thanks again JP. How long were you and agent for?
It’s research for a product I’m currently looking at that I may be able to offer Real Estate Agents.
thanks JP. Any suggestions on how to
Hi Oscar. Great post. It's always good to read about people taking massive action. I find it very inspiring. thats what this site is all about.
How do you plan to sell the units? On your own or through an agent?
Hi Rosebud. Another suggestion would be to see if you can get the developer to carry back the deposit as a second mortgage. I do this with developers which allows me to package a house and land deal to a buyer who then gets to buy a home with very low deposit. As with any property transaction, It all depends on the developer's circumstances. Sometimes you may need to offer slightly higher interest than the going rate but if it means getting a home or not I would consider that a small compromise. You also can avoid LMI by doing it this way i.e borrow 70% or 80% from the bank and get the developer to finance the rest.
It infuriates me to read articles like this. Unfortunately, armed with a few VF strategies and a PTY LTD company, it seems any idiot can get out there and mislead people & do some serious damage for the industry.
The value of good education is paramount in this case. I good teacher/mentor/coach would never have allowed a student to practice in this manner. Or at least would not have had any association with them. I just can't believe these guys got that far.duckster wrote:Cath if you want to find jv partners you need to find motivated similar property investors which you could meet at seminars.
Dr Gordon Ku has a seminar that is teaching what you are trying to achieve.
do a google search on dr house property
If you want to meet other similar investors you need to network before a deal comes along so you have an email list of highly targeted property investors that may be interested in any future JV.
Go to property investor meetings like active property
http://www.activepropertynetwork.com.au/P.S you may need a credit license to do option lease setup.
I agree with all these guys (duckster, Paul & Richard). All very valid and well-informed opinions. I would like to add to these comments.
Networking is such an important part of this investing game we are all involved in. You have a few options while you are waiting to get your ACL.
– You could JV with someone that does have an ACL, which is what I am doing (with Gordon Ku, my mentor).
– You could also get yourself referral fees for any good leads you have ie buyers, vendors or even investors. We currently pay at least $1000 for any leads that we use. I am currently working with a developer who is paying ME $2500 per buyer lead that I send him. This is great for any buyers that don't qualify for my Vendor Finance properties, I just flick them on to my developer as good quality buyers. Saves him the time and cost of advertising. This all comes from networking.Thanks. Very helpful indeed. To answer your question BTW, what I meant by the 12 months statement was that we would have been out of the property for 12 months within the coming weeks.
Those links have shed a bit more light on this for me. Thank you
Stephen
Thanks guys. I appreciate the feedback.
Well I can now give you some feedback. The service they offer is all about creating a strategy to reduce personal debt, access better tax benefits and hence have more money to invest in property. (I think the whole $6500 tax rebate mentioned on the phone was just an inexperienced telephonist). Where they make their money is on the commission from any future products you get through them (Apparently they can get better rates on anything from mortgages to house insurance).One other cost is the $295 now which will get us a day with at their office in Melbourne to personalise our strategy. This actually includes flights there (for us from Perth) and accommodation. Even if we don't even use any of their information, return flights for two of us + accom for $295 total isn't a bad deal.
Meeting the consultant tonight. I'll keep you guys posted. I managed to find the website and actually rang the customer services to try and get a better idea of what they do.http://www.premiumfinance.com.au
Thanks for the comments guys. I think I may have worded the question wrong. The 33% on top of the purchase price was not he margin. There is only a 10% profit the rest is as follows:
aquisition costs (+-5%)
interest (+-8% for 6 months)
reno cost (10%)
selling csts (4%) and
profit (10%).This is where I am struggling because all the properties that I have found to renovate are not cheap enough to add all of these percentages and still come out with a reasonable selling price.
Anyone know if this offer is still available?
Cool, thanks timmcm
Do you think $348k for a one bed is expensive?
Thanks John,
I actually just gave REIWA a call and it's all legit. Apparently it's possible for vendors to be presented as many offers as possible at once and they then decide which one they'd like to work with or accept.
I just had a 'post-offer' freak-out. It's our first IP and really nervous.Thanks all. I was just about to post a question on exactly this topic. You've answered a few of my questions, and was great to actually see Dean's website. Really interesting stats as well.
Do any of you struggle to find properties that meet the formulae criteria. My partner and I are in Perth and we have viewed so many properties but none stack upHi Jase & Flic
Regarding your comment "Ideally you want to see photos of the homes as well so you can see the type of reno…" – where would you source this information?
I'm also finding the same problem as Tina with the numbers not stacking up and we've looked at tons of props in our neighbourhood. Even thought of bringing the 10% reno cost down on some to balance the figures.
Thanks Richard. Do you have any suggestions for where we should be looking or brokers?
What I didn't mention was that we have about $180k in equity on a $280k property in Christina's name. And the amount we looking to borrow for our reno roject would be around $330k (including renos and holding costs). Would we still be within the 80% LVR.
