[medieval]Hey guys
just wanted to share a win, i’ve just completed my first option
I have just onsold some land that I picked up for $10k buying it on an option, paying a fee of $500 with 3 mths option period.
I have just onsold it for 25k…………..kool huh.[grad][strum]
[king]
Im stoked!![lmao]
Anyone else out there with a good story?[specool]Very good, but where can you buy land that cheap!?
Terryw
Discover Home Loans
Parramatta
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Hi Terry, little town in NZ………I was surfing the internet late one night and came upon a guy who wanted to get rid of his land for cash, or was keen to exchange it for a ute or boat…….well I was fresh out of those, so I made a proposition and he liked the idea. We were planning to develop it, but decided to onsell. It was only on the market for under 2 weeks and we got two offers, so GREAT!!
Its kool to see that these creative strategies work!!!
ON to the next one huh!!I’ve considered options and know people who do options, but I just can’t get it out of my head that options are all based around gambling/luck.
Options are about the future and unless you have a crystal ball to know what is about to happen to a particular area in relation to growth, then that’s gambling/luck.I’m sure I’m wrong, can someone please correct me.
Thanks GB
Congratulations MaiA!!
Can you go into more details on how you sold the
idea of an option to the vendor?Thanks
KatrinaHi guys, thanks for your thoughts.
Geoffbeck, it wasnt gambling for us, though there is always some kind of risk involved in investing huh? Calculated risk though.
Anyway it didnt seem risky to us because we had done the homework on developing the section, and the numbers worked that way, and the numbers also worked if we decided to onsell it…..so very little risk and huge opportunity!!
Anyway because we have decided to focus on another development we decided to onsell, take the cash and use it to fund the new project…..Ktmaes
I emailed the vendor, he was selling the land privately, and so I made initial inquiries about what he was wanting price wise, and how long he had been trying to sell the land, why he was selling etc. Then I just said to him that we were very keen, however wanted some time to think about what we would do with the section, and what did he think about accepting a deposit of $500 now and giving us 3 mths to sort ourselves out. He was puzzled I think about why we would do that, but we were confident that if we could control the property for a period of time we would work out how to use it to our advantage.
Anyway that was around Xmas time, and he seemed keen to get his hands on the $500 and he wasnt having much luck selling the thing so he agreed, and just like that it was done!! I think that you need to find out where the vendor is at, and how you can help them get what they want, and use a strategy that will suit the situation…..I have tried using other creative strategies and thus far havent had success with other strategies, but I will keep trying and asking and who knows, it might just work, however you never know until you ask!!!!!
I drew the purchase contract up myself with the help of someone experienced, and ran it past my lawyer, and it was done………cant believe how easy it was………must try again!!
Would love to hear others stories and experiences …
I am happy to answer any other enquiries…..Fantastic stuff MaiA. You solved his problem (poor marketing and needing cash) and made a profit via better marketing and no/manageable financial pressure. There are some really great stories on these forums if you dig hard enough. This is one of them. Well done.
MaiA,
Great stuff! I am also in the process of looking into an aquistion using an Option….
Can I ask, how did you net the $15K? Did you do anything other than onsell the option? Did you take title on the land?
Rgs
QL [exhappy]
Hi there,
I didnt onsell the option, I didnt even think of doing that. I put the land on the market, and onsold it, making sure that settlement date was the same for when I purchased and sold it. So yes the title went into my name for a brief time. All that my solicitor needed to do was shuffle paper, though he advised that I should have the funds to purchase the land in case my purchaser fell through.
In all it was a deal that cost me $500 up front, and around 20hrs work for $15k return, not bad….
Interested to know about your deal…..
All the best.Hello MaiA
Congratulations. Sounds like a very satisfying deal for you.
Can I ask you. Did you market the property via an estate agent?. I am just curious how you managed to sell it in 2 weeks whereas the original owner had had no luck selling it. Where did he have it advertised?
Cheers
ElkaHi Elka
The original owner (as far as I am aware) had only tried selling the land privately, however I listed it with an agent. He was very happy to sell it for the 10k price.
Obviously it was competitively priced when I listed it with an agent as we had two offers within a short amount of time………….Im not sure why the original owner didnt do the same, all I can say is that he didnt??
I am looking to find vacant blocks inthe same area, and do the same again.Thanks for the answer MaiA and good luck finding more of these.
Cheers
ElkaOriginally posted by MaiA:…..
Interested to know about your deal…..Hi MaiA, I haven’t done one yet, just gearing up for it (starting to do some due diligence at the moment).
I’ll post up here when I’m in the midst of it.
Rgs
QL [suave2]
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