Bearsy,
Seems Queenstown has made lots of capital gain! I think this is true for the cheapest places in Australia. Below is a pretty good article with lots of info
http://www.theaustralian.news.com.au/common/story_page/0,5744,8145794%255E25658,00.html
kay henry
Thanks Kay, thats a good article. Your always there looking out for someone. Thanks [
]. This should be useful to some investors.Matt
“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Thanks Kay, Great article, and comfirms my deu dillegence i had done while i was there [
]. ITs great to know that i was on the right track.Regards Bear
Greetings all
I am reflecting on how I could have done things better and protect my interests at the same time. It is now common knowledge that the area I was talking about is Queenstown and properties in the last week have all been snapped up. Some properties that I wouldn’t have touched and were on the market for a long period of time have all been snapped up also.
All tho I didn’t achieve my objective of recouping some of my expenses of finding them and my due diligence in the area I’m sure it will help with the capital growth of the property I purchased.
I am now asking for any feed back from anyone that could give me some advice on how I could improve my approach and protect my interests better. Either on the forum or email me at bear1964(at)bigfoot.com.au
Thanks
Regards Bear
The way to protect yourself better,Bear,would be,
first of all, to only deal with people whom you think are ethical and, secondly, have an agreement signed by them beforehand.Such an agreement would be along the following lines :
It would state that in return for you introducing someone to a particular property from time to time that person will pay you a fee upon the property being purchased by that person, an associate of that person, or a company associated with either that person or a company associated with one of their associates.
The fee can be a set fee or a fee which changes from property to property.
There is a definite place for someone like yourself to locate properties. One deserves and is entitled to be paid for such services.
However Iwould imagine that you wouldn’t merely mention an address so much as also supply a report which sets out the acquisition cost, the cost of and time taken for, any necessary repairs, the rental value, the anticipated time required to find a tenant, the end value, and the supporting factors which make it a good deal (for example an expanding work force etc).
However, having mentioned all of the above I wonder whether it wouldn’t be less hassles and more profits if you could tie up the property first (buying it if necessary).
Pisces133
Bear, Pisces hit the nail on the head with what I was going to say.
If you can somehow tie the property up – maybe for a couple of weeks, then present it to your list of people that you have now who are interested, then that could work.
Cheers
MelPeter and Mel,
That’s a fairly dangerous spte though, don’t you think? It’s basically similar to buying OTP- with the hope of onselling. If the Bears is unable to flip it, he gets stuck with a property he thought was good for someone else, but not necessarily for him. Otherwise he wouldn’t be spotting for others, if he could afford it for himself, or wanted it etc. What if the spottees don’t go through with the purchase?
And speaking of that, what *would* in fact be the contractual obligation of a spottee towards a spotter? They would lose the spotting fee, but wsould there be any liability beyond that?
kay henry
Hi Team,
Actually there is another way, to do this and this protects the vendor, the real estate agent, you the spotter and the purchaser.
How this is done is that a contract agreement form is created and actually can be downloaded from one of the government websites.
This contract of agreement is set as were, a spotter is able to purchase the authority like the real estate agent to sell the property as a middle person between both the real estate agent who is the 3rd party and purchaser, and be able to gain a small comission as being a middle person(spotter).
The agreement is set out, as were the agent agrees to sign a contract were the spotter is give say 1 week – 2 weeks to sell the property, before the agent takes away the spotters right to sell that property.
The agreement stipulates that the agent can not sell the property to anyone else until the contract between the real estate agent and spotter has expired. In this period of time, its up to the spotter to find a purchaser, who is interested in purchasing the property, the purchaser can not go directly to the real estate agent to purchase the property as an agreement is drawn up, stipulating that the agent cannot sell the property until the spotters time frame or period is up.
Doing this protects the spotter from, someone sourcing out the deal from them, and then trying to go directly to the agent and have just used the spotter for finding the property yet cheating them and not dealing through them.
Im not sure of the site, were these forms are downloadable, but i know PropertyGuRu has been able to get copies of this, yet he is on holidays at the moment.
hope this helps
cheers
s.i.s“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
http://www.theenlightenedway.com/tools/mil_calc.shtmlbear,
Do you need a licence of some sort to conduct this type of arrangement say like a buyers agent needs. Just a thought, you know the government!
hate to see anyone getting raked over the coals for a little imagination and get up and go.Cheers and merry christmas.
Jarrod
>>That’s a fairly dangerous spot though, don’t you think? It’s basically similar to buying OTP- with the hope of onselling.<<
Every shopkeeper is facing the same dilemma, i.e. when he buys stock there may not be a buyer.
Bear’s strength should lie in the fact that he knows his business AND that he gets to know his client buyers so well that he immediately knows ‘Oh, Jack will buy this for sure’.
>>What if the spottees don’t go through with the purchase?<<
Again, this problem can be solved with an written agreement.
Pisces133
kay, what I was suggesting is I guess similar to what SIS outlined.
If you can ‘tie’ the property up for a couple of weeks – like an option I guess, that would give Bear two weeks (or timeframe as arranged) to onsell or the option would lapse, and then it’s free again for all comers.
Cheers
MelIn relation to danger, I would suggest that Bear needs a real estate registration certificate or a licence which would be better.
He certainly is acting as a real estate agent! So, if he is acting as one, why then, do real estate agents need licence’s and Bear doesn’t?
I don’t beleive that Bear is acting as an RE. If he does manage to tie up a property with an option, and onsell that option, then he has effectively sold ‘his own’ property, and there is no law that says you must be an agent to sell your own property.
Cheers
MelTotally agree Mel!
Although, I was reffering to the properties that he was trying to do or is currently doing, without buying in his name or option.
There is absolutely no need to be licenced irrespective whether or not Bear ties up the property.
Pisces133
Bear,
Please add me to your list of interested purchasers if you have any more +ve properties in the future. Unfortunately I don’t have the time to source these out and am willing to have someone do the initial work for a spotter’s fee. I can be contacted on 0414 403 413
Happy New YearThanks
Spider
Thanks for all the idea’s every one. Please keep them coming. I certainly dont wana make the same mistake again, this was a costly one.
Kindest Regards Bear
]. This should be useful to some investors.
]. ITs great to know that i was on the right track.
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