[medieval] There seems to me to be two types of investors that are readily identifiable here. Some investors are cash rich, and find it easy to run off to the bank, get loans, and renovate to make profit. And others who are so into the idea, but the reality of actually getting a loan to do this, and having enough equity base to do the property up is the struggle.
Here is my scenario. I am a single mother, and I own a home. I didn’t get the money from a divorce, in fact, my divorce left me personally flattened financially. 3 years after the divorce, I bought my home, which was a “dog box”, and spent the next 3 years renovating it bit by bit, while the kids were sleeping. I found tiles, paint, and specials all over the place, and put together my “creative side” to get things done. I had ideas where I had to bring in professionals, I had a realistic cost estimate for what it should cost, and although some builders were way off, there were times when their advice about why was taken, and sometimes it wasn’t.
In the end, my home, which is 5 bedrooms, and cost $185K to buy had 52K spent on it over time. Its now valued at $420K.
Due to family issues, I financed my loan to accommodate the financial needs, and I have a daughter in B/S in Brisbane. I am not working at the moment because of a work injury, but I am soooo keen to renovate again, its just the costs/living reality that is causing me the problem.[strum]
If I were to get more off the back of this house, to do a renovate job, It would put me financially into a threshold that I can’t afford. I need to be carefull. So..
What about the people that want to do the reno’s, but don’t have the time, but do have the money, and what about the people who don’t have the money but do have the time.
Is there a group anywhere that combines intellectual talent with financial talent, as is done in businesses everywhere.I am looking for a partner in crime to develop in Brisbane. Not all costs and risk to be taken by the partner, but a happy in the middle somewhere kind of thing. I bet there are heaps of people out there in this same situation.
Single mothers are not all evil, some of us are desperate to get ahead, and to provide a safe and happy life for our kids. My daughters both love to look at houses with me, and my eldest who is 14 hasa great eye for colour and budgets. This all happened because they saw me do it for so long.
If anyone wants to talk to me about joining forces, I would love to talk to you.
Cheers
Ginnybear [strum]Hi GinnyBear,
Congratulation on your new found skills.
3 years to renovate a house is a long time. Nonetheless it’s experience in the making. Well done.
Regards
ptnHi PN.
Thanks for your message. Just to clarify, it took 3 years to renovate, because I did the reno as I could afford to to start with.
I just painted it up in the beginning, and got it looking tidy. Then I had it revalued 12 months later after having done the landscaping.
When it was revalued, I had a new bathroom and kitchen put in.
To put in the new kitchen, and to add more room and space, I put in a really large room out the back. This I paid for out of savings from a second job.
Yes 3 years is a long time, a really long time, but It was soo worth it. I learned 100 things not to do again, and 100 things I would do the same. It really was an education.
HOW MUCH FUN!!
Ginnybear
Well done ginnybear!!!
I know there are people out there keen to connect up.It just amatter of finding them.Just be cautious before commiting to a relationship with someone you have only known a short period.(even if its just business)
Have you tried searching through the forum search section? i dont know maybe under “partner required”? or something .I am sure if you keep going through tem youll get a connection somewhere.
Also have a documented plan set out of what you are looking for in a partner , what you can offer and maybe some photos and figures of what you have achieved already(making mention of the effort and determination you had to put in doing it while rareing yr kids on yr own all at the same time too!!)
All the best!
Go for it ,you’ll do it no worries!!We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hi Ginnybear
I am against the idea of partnering as it causes too many disputes.
With your extra capital, I suggest you look at opening a trust or company with the intention to renovate or build. You should hire people to do the work and focus more on management.
I know you may have heard this every where but KISS (Keep It Simple Stupid) will give you the best return.
Something else you can look at is bathroomwerx.com.au to simplify your work and yet give you good return in shorter period. They’ll paint your old bathroom and application with a coat of plastic that will bring it to almost new.
They’re a lot cheaper than replace the lot.
Good luck
ptnHi Ginnybear
Regarding your poor cash flow, you should consider loc docs loans to buy more IP and look into living off equity to fund your creative ideas.
Let’s say you have $420k asset. You have a mortgage of 200k and you require 80% LVR leaving you about 120k worth of usable equity.
Let’s say you take 30k as living expense (plus single mother benefits), leaving you 90k to use to invest.
You can buy a run down house or apartment; do a quick renovation and sell it or refinance it and use its improved equity to fund your next project.
Sounds too simple? It is if you have a will to do it.
Good luck
ptn
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