Hi everyone
This is my first posting on the forum as I’ve just finished reading Steve’s book “0 to 130 Properties …” and just begun reading “$1,000,000 in Property…”.
I suppose what has caught my attention is the many ways investors can go about creating ways to build wealth in the real estate scene. I especially like the way Steve and Dave have strategised, which has lead me to think about how to create wealth, especially in my situation as a uni student (at times – TIME RICH but not MONEY RICH!)
My thoughts have been on flicking deals (in the case of “Robbo”) to those who can afford to invest. However, I have never “DONE” a deal, so I am not sure what investors are lookingt for.
So my Q’s are:
What are they (investors) looking for in general?
What is the best method of contact?
Who does the foot work (i.e. contacting the real estate agent; checking out the property; look for property manages; etc).
If a deal went through what % of the deal does the “Flicker” receive?I am in North Qld. so at the moment I am looking generally in this area, although I am looking throughout the Qld. area while searching. I have one property that may be worth looking at presently.
If I could get some feedback that would be greatly appreciated.
Thanks
Exodus.Hey Exodus,
Good to see you’ve been reading up before buying up!
Generally the property scene is different in each state as buyers are looking for different qualities.
I’m located in Williamstown VIC and buyers down this way tend to purchase old victorian terraces to renovate, etc.If I were located in N. Queensland I’d be purchasing an old QLD-er on a decent block (to renovate/future development site) would use bright colours on feature walls and white floorboards / french doors & salt water pool, etc. Those homes up there are gorgeous!
Also, new development in P. Douglas is exploding! If you can get in on a decent size block of land / old cane field to develope you’ll be sitting on a landmine in the next few months!
Now would definately be the time to get in on the “untouched” areas of N. Qld (like Mossman, Atherton, etc.)As for rentals, I would suggest you do some research.
While in the process of purchasing a property, ask the listing agent what the property is valued @ for rental (returns)
That way you can use different techniques to work out whether this is a wise investment…Always get a second quote on renting out a property as commissions / rates differ with agencies / PM letting fees.
If you have any further questions I’d contact Ray White in your local area.
Hope this all helps and good luck!
Regards,
Beth MacLeod
Hi Beth
Firstly, thanks for the reply. I was a little apprehensive using the forum as I was wondering if I would receive a reply.
However, I personally am not in a financial position to start buying. Being a uni student, money is not easy to access, nor does it come in in lumps (pity). At the moment I am “TIME RICH, not MONEY RICH as I am currently on holidays from uni. I was using the break time to begin reading Steve’s books, hence my desire to start somewhere, especially as I would like to use this idea to start building some wealth for future purchases in real estate.
I was more looking into the idea in building some sort of financial strength by passing on some real estate opportunities that may interest someone looking to invest. I thought I would piggy-back on the idea in Steve’s book on the strategy of “Robbo” (a MAPPER) who not only built a substantial portfolio for himself, but also money from flicking properties to other investors.
What “Robbo” did is what I am looking at. However, I am not sure what he did. I would assume he did a lot of “foot work” in regards to the deal, (i.e. look at the rental figures; the ongoing costs; etc) than looking for an investor who may be intersted. Or, what other ways would he have gone about it?
This is unchartered ground for me so this may work, or it may fall on its face, however, I’m still going to be thinking of ways to start. Steve, suggests looking for someone opposite to yourself; I’m TIME RICH, but not MONEY RICH.
Let me say, my wife and I bought a great big Qlder when we married. My only apprehension in looking to buy another one is the cost to renovate. We did 60% of the renovations to the house ourselves, the remainder by professionals. Though at the time I wasn’t looking at real estate as a form of passive income. However, I feel this is may be the season to start, though money to start will be an issue for a couple of years as I have 2 yrs to go before I complete my degree.
Thanks again Beth
Exodus.
Welcome, and nice to see an open mind.
Before I start, also have a chat to Dazzling, our accomplished commercial investor – he may have some valuable insights about ideas you haven’t thought of.
The answer to all of your questions can be put in at least two ways:
1) It depends; and
2) That’s subject to negotiation.Flipping often depends on having a buyer ready – it requires balancing a variety of interests and extracting yourself and your profit. Why not ask on this forum to actually contact the MAPPERs who did flips? They’d be more than pleased to help, no doubt and some of them are fairly identifiable by their names. [biggrin]
You also need a backup plan – what if it goes pear shaped? Don’t let that stop you, just have a strategy, or 2 or 3 or 5! BE Steve and Dave, OK?
And finally, in the words of Napoleon Hill (but maybe not the way he would have said it): THINK and grow rich .
Exodus
In Qld if you go to Contract and then onsell the property you will be up for Stamp Duty and of course legal fees so you will need to have these up front.
The Form 1 Transfer document will need to be stamped prior to settlement so duty needs to paid upfront rather than out of your sale proceeds.
The easiest way is to use a Call Option as in Qld there is no Duty payable on an Option Fee.
If you were to exercise the Option you would merely nominate the end Buyer on the purchase contract and you would collect an assignment fee. Half the battle is to ensure that you have a Option savy lawyer on board.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
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