Well today I had two wins, I have found my very first wrap client and also have successfully negotiated my first No Money Down deal.
I have co-purchased a property with another partner who has equity in a separate investment property. We are borrowing 105% against this security.
The last hiccup was the 10% deposit within 14 days thing that Real Estate Agents Love (And I do appreciate that this is to cover lost time of property off the market). They wanted 30,000. I said that we would be using deposit bond.
they said they wanted 30,000 cash if deposit bond was not available
I said (as explained with initial offer) that we were borrowing 105% that we would be using a deposit bond and that the initial holding deposit would have to do.
They said that they couldn’t hold a property for 60 days for $1000.
I said that if the deposit bond wasn’t good enough then we walk away
They said “oh no, oh no”
I said “ok” well how about if the deposit bond isn’t ok, then we can negotiate a cash deposit then or end the matter.
They said ok
Yay ….. turned a $30000 cash deposit contract into virtually nothing….yay.
It’s not a +ve cashflow property but it has huge capital gains potential (bought below market value)
So for all the weeks of hard work I have been throwing at my poorly performing property portfolio, I have had two strokes of luck in one day.
[
]May all your dreams come true. (except for those evil dreams and maybe that dream where you had no pants on in school, oh, and that other dream with the invading martians and the……………)
Lifexperience
<<<It’s not a +ve cashflow property but it has huge capital gains potential (bought below market value)>>>
Congratulations – bought below market value – you thinking in 2003 prices or 2005 prices.
What you bought now in fact may be worth less in 2005 hence the vendor accepting your small deposit.
And what you bought now may appear to be under market value if your still thinking in 2003 property prices.
The real market price is what you paid today – not what you thought it was worth last year.
Yack,
Thanks for taking an interest in my activities.I didn’t mean to talk the deal up too much, It was just a good feeling at the end of the day to acheive something that I was personally proud of. and I just wanted to share it….that was all.
Thanks for the perspEctive.
[biggrin]May all your dreams come true. (except for those evil dreams and maybe that dream where you had no pants on in school, oh, and that other dream with the invading martians and the……………)
Lifexperience
But you are right, market is what I paid for it. So technically I should have worded it… purchased for a lot less than the current asking price on similar (much smaller land area and with older buildings) properties in the area.
May all your dreams come true. (except for those evil dreams and maybe that dream where you had no pants on in school, oh, and that other dream with the invading martians and the……………)
Lifexperience
Congratulations LifeX,
At least you got off your butt, did your homework and PURCHASED a property, which may well be worth less (careful how you read that) in 2005 (who is to say for sure) but sooner or later, IF you have done your homework and investigated adequately its growth potential; you should end up the victor.
My sincerest congratulations to you……Well done!!! [thumbsupanim]
Jo
Thanks Jo,
You are sweet.And i was very careful when I read that and managed to avoid burns, bruising and pink eye safely.
[
]
May all your dreams come true. (except for those evil dreams and maybe that dream where you had no pants on in school, oh, and that other dream with the invading martians and the……………)Lifexperience
terrific work lifex, any details you wanna share ie. what sort of property? general location, why you bought this one over others etc. just general not poking my nose in.
but hey, nice to see you win over the realtors and their trumped up reasons to secure a cash deposit.
cheers
brahms
Mortgage Broker
[email protected]It seemed a pretty easy execise Lifex.
Congratulations on the deal, I have learnt alot from your post, and will have this in mind when talking with the agents that I’ll be dealing with in the future.
Broome,
Do you want to be paid when people pay their telephone bills.
http://www.homebizleaders.com/4537Congratulations lifeX and well done.
Can understand the rewarding feeling as we recently purchased a property from one RE company, it was valued at more than we paid by the bank, then when we got the Re company who handles our property management through they said we paid at least $10,000 under market value.
This is our first city property and we also experienced for the first time – having tennants paid up and moving in within 5 days! They would have been in sooner except we had to wait for our days off to do some minor repairs!
So it’s great to share your experience and give encouragement to others.
Keep up the good work, Diane[thumbsup2]
Brahms
What sort of property? = newer house zoned rural on 60 acres.
General area? = about 10 mins from a large regional centre. 1 hour from eastern melbourne suburbs.why you bought this one over others etc. It is surrounded by 5 acre blocks (subdivide and conquer) and local town has a growing industry.
I am sure that people will soon realise that living in these rural areas have benefits over city (traffic, crime) and that the cost to buy is heaps less than anything similar in city.
Thats great dianne, more properties for everyone.
go for it broome
May all your dreams come true. (except for those evil dreams and maybe that dream where you had no pants on in school, oh, and that other dream with the invading martians and the……………)Lifexperience
I can now see why you had a good day. Good luck with it.
]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
