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that’s the one we use too pp
It estimates a % profit at the end.
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582what state are you in
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582hi pp
that does seem very skinny. I would be going for >20% returns on a construction. Do you use any feasibility software to work out your profits?
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582hi ilerarner
why does the lender have to know what you are going to do with the property after purchase?
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582What are you guys talking about?????????????????????????????????????
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582hi munji
from what you just said (10 year lease and 3% annual rises) sounds like you may have a great property.
Comm properties are valued based on their capitalisation rates (gross rental yield). If the cap rate of the area is 7% and yours is returning 10%, then it is worth much more than what you are paying for it.
Basically, in a comm property, you can increase the value by increasing the lease.
The quality of the tennant and the term of the lease also play a role.
hope this helps
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582Hi Yidn and others,
Like I said, I’m fairly new to lease options and with investing I think its akin to ridng a bike, only experience can teach you how to do it properly, If you talk to me in a year from now, my strategies would probably have changed as some of this theory turns into practice.
For now, our main reason for adding Lease options to our portfolio is to add equity and positive cashflow.
The reason I like max 5 year terms is so that our equity and cash that we have tied up in those properties can be unlocked for use in another project. thats the theory, in practice, we still have numbers to play around with as you can see,
these posts have helped, thank you all very much !!!!
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582The whole idea of this post was not whether we should love money or not its that being an investor means that you constantly get attacked for wanting to make money.
By people WORKING for money in JOBS.
When I was working as a scientist, I used to be attacked constantly by “animal liberationsists” for using experimental animals. These people were very happy to sit in a restaurant after their little riots and eat STEAK!!!!
In the past, when people said anything about using animals, I used to ask one question, are you a vegeterian???? If the answer was no, then I used to respond with, you are a hypocrete and have no right to be lecturing me.
NOW as an investor, I say, do you work for free??? If the answer was no, then I used to respond with, you are a hypocrete and have no right to be lecturing me.
People love to put others down for something they also do themselves????
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582Hmmmmmmmmmm!
Salicious, I used to work with ALOT of white rabbits (as a scientist) but I can tell you that I ABSOLUTELY have never been sexually attracted to either of them.
Are you nuts!!!!!!!
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582thanks also for your LO advice. That’s one area I hope to gain more knowledge and experience on in next year.
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582check out also http://www.moneybeans.com
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582Another great accountant re-tax structures in Melb is Dale Gatherum-Goss. Although we have personally not used him, just familiar with his books.
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582We are in Adelaide but use accountants in Melb. Is there any reason why they have to be in WA?
The transactions still require phone calls, faxes and emails no matter where your accountants are.
We have used Active financial answers in Melb, they are investors and definantely know how to advise their investor clients.
No is (07) 5479-4455, the one we used was Marteinne Freeth.
Cheers
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582Hi Yidn,
Love your posts, you obviously are very well read.We have done a few renovations, where we compare the “quality” to what the market in the area is demanding. Ie if the house is in an area where there are alot of generation xers and their young families, we include easy care polished floors, built ins, average kitchens and secure backyards.
For retired peopel, we want compact gardens, BATHS (old people love them) lots of security.
Young proffessional couples (DINKS) generally like top european appliances, jag kitchens and expensive houses in high income areas.
You get the picture.
You can research your market through demographic reports on online services ie RP-data.
Surrounding houses give lots of clues. ie dont waste money on an expensive remote control fence if no other house has it.
We also stick to only cosmetic renos, ie kitchens bathrooms and floors, have never attempted to repair salt damp or termite damage, these can get too expensive.
The last thing I would recomend, is LEVERAGE YOUR TIME. Why waste your time doing the actual reno when it could be better spent looking for the next house to buy.
Hire tradespeople to do it all.
All the best!!!
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582Hi Paul and thanks for your input.
Increasing the purchase price by 15% in 5 years. Is this a good enough projection of future price? I would have thought 15% in 2 years would have been sufficient.
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582Thanks Yidn
with your numbers, they will be short $24,000 by the end of 5 years, and you are saying that its the T/Bers resposnibility to come up with the difference. OK, makes sense.
So what is the general rule that you use on lease options?
Looks like an increase on 10% per year on asking price and 22% rent credits, would I be right?
Could I then do, asking price of $220,000 on a ONE year lease option,
option consideration of $6600
Rent of $360/week with $80 rent creditsThis means that T/Bers would need to come up with $33240 at end of year to purchase on 80% LVR.
Is this doable?
Could I then increase the asking price and rent by another 10% at the end of year one if they want to extend?
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582anyone!!!!!!
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582Hi erwanjg
I think you probably know the answer to your question. If you don’t want to do a JV, the only other options are finding a “no money down” deal or keep on learning while you save up enough of a deposit to buy a property on 80% LVR. Or consider some creative strategy to bring in profits such as lease options or sanwitch leases.
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582and yes, the option fee is also credited to the purchase price.
The whole idea is that they have 20% of the purchase price at the end of 5 years!!!
Like I said, this is my first deal (have not done it yet, just playing around with numbers)
Any other suggestions?????????
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582
