My wife (Felicity) and I (Jason) attended Steve's "How to find…..in 28 days" seminar in Melbourne last Sunday 20th May.
I thought I would post our progress so far so that others can give feedback and also share your own progress.
Some background:
Before the seminar we had identified an area and a strategy of buy- add value- sell, and had started talking to agents and looking at houses. So we were able to “hit the ground running”. I had also arranged to have Monday off work so I could start taking action immediately and not lose any momentum.Here is a summary of our progress from 21-26th May:
-Called mortgage broker to discuss financing-called accountant about structuring-physically inspect 5 houses – 2 reno’s, 1 small development, 2 for research-drive by/ walk around 3 other properties-attend 1 auction for research-crunch numbers on 2 reno’s and 1 development
-walk in to 2 agencies to introduce myself
-made offer on 1 reno deal
-started working through “Renovation Toolbox” (purchased at seminar)
-began research on 2 more suburbs-still trying to make the numbers work on the development. Here is a summary of the budgeted numbers on the reno deal: Address:Portland st, Mulgrave, 3bed, 2 bath, carport, total cosmetic makeover needed, vacant house, early access to do reno, very popular street/area.Purchase Price: $330,000Reno Costs: $20,000Other costs: $18,000Sale costs: $10,000Sale Price: $400,000Project length: 4 months
Cash Down
$ 62,860 Cash Back $ 13,640 Interest $ 8,360 Interest Rate 8.00% Risk Free $ 1,048 NPP 21.70% Required 24.00% 2 × Interest $ 16,720 Cash Back $ 13,640 DMM 13.02 Required 12.00 Feel free to tell us what you reckon. I would love to hear if anyone else was there on sunday and how you are going.
P.S. Yes, we were the ones with the baby.Oops. let me try those reno numbers again. Clearly this time
Address:Portland st, Mulgrave, 3bed, 2 bath, carport, total cosmetic makeover needed, vacant house, early access to do reno, very popular street/area
Purchase Price: $330,000
Reno Costs: $20,000
Other costs: $18,000
Sale costs: $10,000
Sale Price: $400,000
Project length: 4 monthsCash down $62860
Cash back $13640Net Profit Percentage 21.7%
Also, we found out today (Monday 28th) that the vendor wants $340k or more, and our offer of $330k is as high as we could go. So on to the next deal!
Also today I:
– booked mortgage broker to come tomorrow night for a refinance and a pre-approval on investment loan
-called the council to find out what is still required on a house with planning permit for unit at back that I looked at.
– called a REA to ask what happened after an auction we went to that was passed in
-inspected another house in the target area and chatted to the agent about prices for a good half hour. She told me of a vacant block she has for sale, possible for 2 dwellings, so there is another deal for me to do some numbers on.
-photocopied plans of the above mentioned "unit at back" to take to some builders for estimates
-did some forum posts!!!!
And just for fun I worked 9 hours to pay the bills, got kids breaky, helped feed, water, and bed the kids at night, and fixed a dodgy lightbulb. (Just in case you wanted to know that)
Jason and Felicity,
Well done. You guys sound like you are making excellent progress. Just keep crunching the numbers and staying active, setting goals and I am sure you will make fantastic property investor
Best Wishes
ChrisWe just bought a house,(Yay!) so to continue the story I am going to start a new post in Adding Value section.
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