Hi All,
I have just finished Steve’s book, and both myself and my wife are determined to do start investing in +CF properties so we can have more time to start our business.
However, we have been having a bit of hiccup in locating deals. We’ve been looking at definitely more than 300 properties from internet and only one property (a home in a caravan park) that we found barely fits into the ’11-second solution’ criteria from Steve’s book.
We’ve been looking at small towns from 50km to 200km from Melbourne – Morwell, Traralgon, Moe, Sale, Melton, Deer Park, Woodend, Shepparton, etc. We checked all these properties from internet sites – http://www.realestate.com.au, http://www.domain.com.au, and http://www.realestateview.com.au.
I have a gut feeling that we are doing something incorrectly… I’d just like to have a bit of a pointer – are we looking at the correct places ? I am not asking for name of the towns or anything – I just wonder if we need to look at smaller towns, or towns further from Melbourne, etc ? Or is this number is realistic – 1 reasonable property out of 300 ?
Thanks in advance for your feedback and your time !
Look beyond Victoria
Cheers,
Aceyducey
Also… researching on the internet alone will not help in locating a lot of deals, as they aren’t marketed here..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorWhen sourcing property deals the asking price and the lowest acceptable price maybe way apart. I suggest you make offers at prices that fall within the 11 second rule. The vendor may choose to accept, counter sign or reject your offer. What do you have to lose.
There are literally hundreds of properties that meet the 11 sec solution all over the place.The trick is to find the 10% that are still good.And preferably already tenanted.Email me if you like for some one on one
Russ.[biggrin]Hi Fsat,
You are in exactly the same position as myself and probably every other person who have read Steves book or done a property course. The next step is research. You first must understand, a majorities of the properties that Steve bought were in the past 5 years before the boom hit. Some believe they are all gone but they are not. They are just very hard to find. My wife and I spend up to 8 hours a day researching areas across Australia including the sustainability of a town, industries and rental rates to find the positive geared properties we promote.
We are lucky as we are buyers agents and it is part of our job. Most people who have a normal job will only have a fraction of that time to do the research and in turn they can get nervous and make emotional decisions.
The best advice i could offer is do your research, have your standards and stick to them. There is always variables involved with property, so that is when good due dilligence is essential and be patient and build relationships with agents in the areas you are concentrating on. But most importantly, dont believe a word they say.
Every property you will look at, will always have “SOMEONE LOOKING AT IT”, or “SOMEONE IS ABOUT TO MAKE AN OFFER”. Dont be effected by these comments, do what you feel, not what they want. Just remember, the deal of a lifetime comes every 14 days.
Hunter House Hunters.
Specialising in finding your dream home in Newcastle and the Hunter Valley or your perfect investment property throughout Australia. [email protected]Aceyducey, Redwing, Ibuycashflow, RussH, and House Hunter – thank you so much for the reply.
We will definitely will try by making offers which falls into 11 second rule, thanks for the idea. And one point that I have to admit we are still lacking is the research – we haven’t gone into as deep detail research to find out demographics and sustainability of a town, which we will have to do as well shortly.
And yes, having a full time job during the day is cutting down the time we have for research, and plus, on top of that we are still working on launching our business as well… so I guess we have to use our time efficiently…
Another question if I may… if the deals are not on the net, and are not on the papers… does it mean that I have to prepare list of a town based on a certain criteria, then cold call the agents on those areas ? Or is it better to ask a help of a ‘bird-dog’ to start the first few deals until I start to get the hang of locating the deals ourselves ?
I have to agree with Redwing, a lot don`t make it to the website. Pick up the phone and establish a relationship with the agents in the areas you are looking at. If they know you have $ for a deal they will be ringing you when the cheapies hit the books.
Regards Terry
I have found that agents will call me if they know my requirements. If a deal isn’t quite right but the agent has been helpful, rather than just saying no, leave them with a list in writing of your requirements and they will call you when a property like that comes on the market. After all they want the sales too. I have sometimes found they call BEFORE the property goes on the market.
Cheers
Vivian[biggrin]wow looking in Vic for positive cash flow is not what I call a good start. Same as Sydney unless you have a massive deposit for the main centres you are looking for the imaginary needle in a haystack.
Look north south west and across the sea.
Qld, Tassie, WA and NZ
Dont be scared, its out there.
DD
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