Hi all,
I’m thinking about doing some spotting to raise some money to invest myself. Can anyone who’s done this or knows anything about it tell me how one collects money on it? ie do you just rely on the honesty of the person you hand the info to to pay you if they buy it or is some more concrete system generally used?Regards,
SiI would suggest that you secure the property under contract in your name and/or nominee (subject to due diligence, or a clause that states you will be forwarding the deal, if you have lots of buyers and know this can be done quickly) before offering the deal for a spotters fee. This way you can freely discuss it knowing its already under contract.
Make sure you have enough time before the contract goes unconditional to find an investor (or have one ready lined up).
Alternatively you can just talk about it without a contract, but be careful as obviously someone could just go around you and sign it up themselves and not pay the fee.
John [biggrin]
(I believe that later this year there will be no +CF deals left in NZ. If you’d like Steve’s MAP protege living in NZ to leverage your time and find the deals to build your portfolio quickly, just ask me!)
Thanks John. That sounds like excellent advice.
Regards,
SiSibo,
Spotting is illegal in Australia if you do not have a Real Estate license. So when you move to Canberra this is probably something you should bear in mind.
New Zealand I have no idea about – but you should check!
Cheers,
Aceyducey
Aceyducey,
Really!?! thankyou for pointing that out. i was completely unaware!Regards,
SiOriginally posted by Sibo:Hi all,
I’m thinking about doing some spotting to raise some money to invest myself. Can anyone who’s done this or knows anything about it tell me how one collects money on it? ie do you just rely on the honesty of the person you hand the info to to pay you if they buy it or is some more concrete system generally used?Regards,
SiIf you have something on hand, Please give me a email.
Regards
Julain[rolleyesanim]THERE IS ALWAYS A BETTER WAY!
Sibo,
you should read API magazine. Mini told me about an article the other night – it is specifically about signing a contract xxx and/or nominee. You should read it if you are thinking of spotting.
Cheers
CDCastleDreamer
Edit: Ooops, Sorry Mini, quoted the wrong mag, New Zealand Property Investor.
Castle, it wasn’t API it was The New Zealand Property investor magazine.
“Sibo,
Spotting is illegal in Australia if you do not have a Real Estate license.”Rubbish.
OK, if it’s not, define ‘spotting’ and show me the law I’m breaking.What does everyone think is a reasonable finders fee? Does it depend at all on the price of the place found?
Regards,
SiOriginally posted by MiniMogul:“Sibo,
Spotting is illegal in Australia if you do not have a Real Estate license.”Rubbish.
OK, if it’s not, define ‘spotting’ and show me the law I’m breaking.Mini, I have had lawyers here in SA look into it for me, I don’t have the law in front of me, however it is along the same lines as selling used cars with out a license (LMVD) other then your own personal vehicle.
There was a little loophole that existed buy the property under your name and or nominee, but that has now been closed up. Of course im talking about SA here, but I am under the belief that REIA were behind it (so im sure it is more then likely they have done this nationwide) and willing to prosecute with a $20,000 fine.
The only way around it is to find a willing licensed RE agent for a fee to finalise any deal. Not an easy task as the insurance premiums are at a all time high and RE agents are finding the risk reward factor not worth it.
Bottom line if you spot and the purchaser is not happy with the purchase at the end of the day the spotter has no legal leg to stand on in court to my knowledge.
But trust me im still working on things here as im finding so many properties that meet the 11 sec rule, that I have actually stopped looking for a while, and working on a solution. May even have to get RE license but that takes about 2 years.
I hope this helps Mini
Regards Bear
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DONT MISS OUT!!!!!Hi Guys
i think the laws vary from state to state i have never heard it was illegal in Victoria for instance.
it isn’t illegal in NZ our solicitor here actually assists us with the process
regards westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Yes I believe in NZ its a differnt kettle of fish.
Did I mention however that JV’s are perfectly legal?
Regards Bear
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DONT MISS OUT!!!!!Does ‘spotting’ mean only signing the contract and then giving it to someone else for a fee, or does it include pointing people toward a property for a fee also?
Regards,
SiBut trust me im still working on things here as im finding so many properties that meet the 11 sec rule, that I have actually stopped looking for a while, and working on a solution. May even have to get RE license but that takes about 2 years.Regards Bear
hey Bear,
I’m from Adelaide and just starting out. [cap] Are the properties that meet the 11 sec rule, you are looking at in the Adelaide metro area? I have seen quite a few in SA, however not around adelaide.
cheers
kinks
In theory, there is no difference between practice and theory, in practice, there is….
Bear,
Is SA good picking?Regards,
SiYou would be going in Adelaide to find properties that meet the 11sec rule, but in the country area’s there are many as there are in any state. My belief is that qld and and NZ have the higher yeilds tho
Regards Bear
POSITVE CASHFLOW properties and Joint Ventures available!
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DONT MISS OUT!!!!!I agree with Bear in regards to NZ having good returns and yields and capital growth.
“If You never never ask, you’ll never never know”
Originally posted by geo:I agree with Bear in regards to NZ having good returns and yields and capital growth.
“If You never never ask, you’ll never never know”
Hi geo and bear,
So, what do we need to know in regards to investing in NZ? [blush2]
Cheers
In theory, there is no difference between practice and theory, in practice, there is….
I agree. I think NZ is prime investing. No capital gains. A culture firmly in love with property. No stamp tax. Other favourable tax breaks for property.
Regards,
Si
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