Forum Replies Created
Hi Melissa
My pleasure re: the advice. I'm no expert by any means, but it pays to listen to the Podcasts to get all that info that you don't get at the Bootcamp. Hubby and I have found the Podcasts extremely valuable, especially for "Words that Work" and just to reinforce the strategies we learnt.
Assume you guys live in Sydney? We are based at Rosebery (near Mascot). We have tried to keep in touch with some of the people my husband met at the Bootcamps he attended. Just wondering if you and Paul woudl like to join our Network? It's always good to touch base with like-minded people. If so, just drop us a note to the email address below and maybe we can meet up for a coffee.
Cheers, Tamara
Email: [email protected]
Hi Melissa and Paul
You might want to tap into Rick Otton's Podcasts (available from i-tunes) as there is one on "How to deal with Real Estate Agents" (I believe it's Podcast # 44). The Bootcamp will also give you a little insight on this topic, but I recommend when you attend that you ask this question specifically so that Rick/Ben can provide a more detailed response.
As the other folks have suggested, using the words "Rent to Own" when speaking with the so-called professionals is not the best approach. They will only look at you like you've grown horns out of the side of your head! My husband and I tried that at a Money Expo with some Lawyers and they just laughed and sneered at us. They've got NO IDEA!!!!!
Rick recommends providing or floating an "idea", rather than mentioning a particular strategy. He also recommends offering to pay the Real Estate Agent his/her commission right up front – after all that's what they are most interested in, right??? More importantly you need to speak with the Seller to find out their SITUATION. Ask them, what are they going to do if they don't sell the house? If they say "Probably just rent it out" – Bingo….there's your in. You could then tell them you would love to buy the house, but at the moment you don't have enough cash. If they're OK with it, you could pay them "above market rent" with a view to buying the property from them down the track when you get your bank loan approved. In this process you haven't mentioned Rent to Own and you've just floated an idea.
Cheers and good luck, Tamara
Hi jmsrachel,
Rent to Own is absolutely NOT a scam. It's how the media like to play it out (ie: bad landlord/property investor vs the good/supposedly taken advantage of tenant). I mean really???? Don't believe everything you read. Seek the facts from people in the know and don't read into the "Emotion" of it all. Unfortunately, yes, there are some people who have charged in "excess" of what it is deemed "reasonable rent" and they seem to be the ones that the media pick up on. These people taint the whole Rent to Own system for the rest of us who do the right thing.
Rent to Own or Rent to Buy situations have been around for years and have helped thousands who have otherwise never been able to afford their first home with very little deposit. Rent to Owners might pay a premium rent but the difference is "credited" towards the purchase of the property. The contract stipulates that they have the "Right" but not the "Obligation" to purchase the property so they are not being forced into a purchase. It's a "try before you buy" situation which at the end of the day they can walk away from. They will lose their Option Fee – but that's something they've agreed to right up front.
Funny how no-one questions Retra-Vision's Rent Try Buy system???? Something to think about…..
Cheers, T43
Hi PropertyInvestor78
Most property investment magazines will have data on suburbs that perform well. This would be a good place to start.
Major areas like Parramatta, Blacktown, Penrith, Liverpool seem to be good performers, but I'm sure if you do your research you'll find other suburbs. I would be careful to avoid areas that are considered socially challenged like perhaps Mount Druitt.
Good luck with your investing journey!
Cheers,
Tamara43
Hi Todd
Don't know anything about this website, but just passing on some general info relating to investing in the USA.
If you have itunes…..go to Podcasts…..search for Creative Real Estate…..and listen to Rick Otton's podcast 8 and 9 on Investing in the US.
You may change your mind after hearing this!!!!
Cheers, T43
Hi Penpro
I'm in agreement with Paul and Richard….you might want to consider setting it up as a VENDOR/SELLER FINANCE sale and offer the property as an "opportunity" for a first home buyer. Please don't lower your price – you don't need to. (Sorry Jamie – disagree with you on that one!).
1) I would get rid of your RE Agent…..sounds like he's doing a terrible job! No place should be on the market for 1 year and you don't need to pay any money to this person.
2) Declutter, paint if you need to brighten up the walls to give the illusion of space etc…..but don't spend a fortune on this as it's not worth it! I wouldn't go to the trouble to have it staged by a professional or anything like that. People in general are fussy and/or weird about interior decor, so no matter how you style it, there will always be someone with a negative comment or statement.
3) PUT AN AD IN YOUR LOCAL PAPER and SIGNS AROUND THE AREA:
" No Bank Qualifying, buy my 2 Bed Unit, $xxx/week, Call (insert your name): your phone number." The dollar figure you'll need to work out as what works best for you in terms of payments over time.
4) Let buyers know what your selling for and offer them the ability to pay you an upfront amount of say $5-$10K as their deposit and the rest can be paid in installments. If you go through a mortgage broker they may be able to assist in qualifying buyers for you and you'll need to see a VF Lawyer to set this deal up as an Installment Contract.
This should set your unit up as a "point of difference" to the other units, and could also potentially increase the price of the other units in the block that are going up for sale. It's a very effective method of marketing to a large proportion of people who cannot get bank finance in this day and age and/or cannot or have not saved a huge deposit, but would love the opportunity to purchase property.
To read more about Vendor/Seller financing…..Rick Otton has a book called "How to Buy a House for a Dollar".
Good luck. Hope all goes well…..cheers, T43
Hi Dragonboy
Yes, I can recommend someone who manages property in that area. He used to manage my property in Kingsford and also arranged to have it sold for me a couple of years ago. He's very good and seemed to stay on top of things.
For privacy reasons, best if you email me and I can on-forward you his details: [email protected].
Cheers, Tamara
Have you tried http://www.graysonline.com.au? Stax of bargains there!!!!
Cheers, T43
The developer isn't bailing out. They have ownership of the majority of the land and but have let the Global 1 group purchase 130 plots because they were not able to access all the bank finance required, so I suppose it's a kind of JV. They indicated to us that Rowan himself has placed an EOI for 11 plots of land. The rest is being marketed to his members.
Obviously, and we also asked the question about their commission, they get paid via the developer, plus I know there is a joining fee to become a member of the Global 1 group – which isn't so enticing.
I am also in the process of doing my due diligence with regards to SMSF's and how this may or may not work for us.
Thanks for all your comments……..T43
Hi Ricky
Yes you are correct. This is the offer via Rowan Burns and the land is in Melton. Ricky what you described in your comments is correct, however in relation to year 8 and cashing out, the information I received indicated I would not need to use my SMSF to borrow the balance from the bank as this would be paid out of the proceeds of the sale of the land and we would pocket the rest.
Hi Scott
I understand that a SMSF is supposed to earn you money over time, but does it ultimately matter whether you receive $xyz dollars return stretched out over a period of time or if you get the same amount at the end of the day in 8 years? You can't touch it anyway because it's Superannuation!
Given that both my husband and I are not working and not contributing, we are really not counting much on our Super to keep us sustained after 65. My goal at the moment is to use Vendor Financing strategies to build cash flow for every day living. I see Land banking as something more long term and something that could (if I went ahead and signed up) work for us in the background, and to be honest I would rather have my SMSF in land/property than shares.
I know the Option Fee of $44,000 is non-refundable and quite frankly I do find this steep, however I have accounted for that and basically looked at the price of the land as say $180K plus $44K so total cost of land is actually $224K. The deposit would still be taken off the $180K, so I would pay $18K upfront. At the end of the 8 years my exit strategy would be to sell the land using vendor finance, where hopefully I could regain the Option Fee I paid upfront plus much more.
The area is being rezoned residential and there is a due diligence pack that I would have assessed by an independent property/development consultant (I found one on-line last night) before I signed up for anything.
Thanks for your comments guys!!!
Cheers, T43
FYI…..Rick's Bootcamp is not $5K…..it's actually $3K and covers numerous strategies relating to creative real estate deals. My hubby will be attending the course in August 2012 so I know the actual cost.
Courses will be expensive but you have to take action after the course and that's what counts!!! If you can utilise the info given to you in such a way as to earn back what you paid plus a whole lot more $$$$, then that to me says the course was worth it. Experts are not going to charge you peanuts for their time and effort in putting their course material together and coming along to speak for 3 days at a time, and quite honestly I don't blame them. BTW, reading his book will only give you a "taste" of his strategies….it won't highlight anything in detail like the Bootcamp will, nor will it offer any of the legal paperwork required for you to actually implement anything. His latest book is worth reading but just keep in mind the above.
All the best, Tamara
Hi there, I live in the suburb of…..ROSEBERY (adjacent Mascot) in Sydney. It's very close to the city, shopping centres, beaches, factory outlets, movie theatres, a whole variety of schools…..and best of all it's still one of the very few suburbs that's reasonably affordable!!!!!
Cheers, Tamara
Hi Sam
My husband will be attending Rick's Bootcamp in August and I was wondering how you found it when you attended? How easy/hard was it to follow and implement his strategies post bootcamp? Interested in more detail. Please email me at:
[email protected]Much appreciated, Tamara
