Hello everyone,
I've just recently joined this site. I currently have 3 investment properties and am a long term investor. However, I have been pesented with a situation, which is a terrific opportunity but one that I have little first hand experience with. So, I am hoping to get some suggestions from this forum as to what kind of professionals I need to work with to make this deal happen.
situation is that a friend and I know of a property (mixed business/residence) in a sought after inner city location that the owner, who now lives overseas, bought several year ago for $370k and wants to sell it now for $600k. We also know an interstate investor who has seen the property, but does not know that the owner wants $600k, who wants to buy the property and is willing to pay $800k for it.
In case this sounds a bit too good to be true, my friend in question has been running a business and living in this property for the last several years under a special arrangement with the current owner. and the owner is quite happy to have $600k for it and the buyer has done his research and is willing to pay $800k for it.
Any recommendations as to an experienced property lawyer in melbourne to handle this kind of deal where my friend and I can be the middlemen. We need the expertise of a professional to lay out the best options related to financials, taxation, CGT issues, etc..
Any suggestions and recommendations will be greatly appreciated.
many thanks
JNM
Hi JNM
To complish what you want to achieve, you need to "control' the property (without actually buying it), along with the right to on sell at a higher price.
As part of our Vendor Finance buisness, my wife and I do this regularly. If you would like to talk, our phone number is bleow. Good luck.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
What an AMAZING opportunity! Have you considered signing contracts yourselves at the 600k asking price and then onselling it for 800k within the settlement period? Have the 2 settlement days on the SAME date and you effectively have a "NOTHING DOWN DEAL". If you are concerned at all about the 'buyer' committing, give yourselves an OUT clause in the contract. Have a cooling off period and if you can't secure your 'buyer' within that time, simply exit from the contract. It seems too easy, am i missing something???!!! But seriously, if this is a 100% genuine situation, take the bull by the horns
, a hefty profit awaits! Please let us know how you go, it would be great to know that those deals still exist, even if it is just because of 'who you know'! Good luck KIZ the only downside with that proposal is that both the final purchaser and JNM will be hit with stamp duty etc on the purchase. It would be better for JNM to take an 'option' to purchase the premises at the agreed price of $600k paying a small non-refundable fee then to onsell the 'option' to the end user/purchaser at the price which they are prepared to pay – that way the JNM is out of pocket for the fee, say $5-10k and he then sells the option for $150-200k (ie the purchaser will pay JNM $150-200k and the vendor $600k). In this way, JNM can deal with the property ie try to sell it to party B or someone else during the option period or to purchase it himself. Contact your solicitor to discuss this course of action.
Hi JNM
The challenge with a traditional option is that the final purchaser usually finds out what you optioned the property for. If you're looking for an easy sale for $800K, you need to be able to give your final purchaser a standard contract of sale for $800K, not an Assignment of Option form (as with a standard option).
We use a system of legal paperwork that prevents the final purchaser knowing what price you're controlling the property for, i.e. it's an option but it's very different from a traditional real estate call option.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
i have so much to learn
and stamp duty…. arrggghhh!!!thanks for the suggestions that have been put forward so far on my question. I appreciate your comments. As this is a new area of involvement for me, I want to make sure I approach it in the best possible way. Sounds like there are a few different ways of doing such a deal.
Paul, I'll try to give you a call on Monday for a chat about the situation and to learn about your services.
thanks very uch
JNM
Hi John
I believe you rang Karen this afternoon. I'll be back in Australia tomorrow (Tuesday) lunchtime. Give me a call on 0447 973 235 and we'll talk about that idea. Thanks.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
, a hefty profit awaits! Please let us know how you go, it would be great to know that those deals still exist, even if it is just because of 'who you know'! Good luck 
and stamp duty…. arrggghhh!!!You must be logged in to reply to this topic. If you don't have an account, you can register here.
