Category Archive for General

I find just opening my mouth and talking very easy. Lots of women do too - and they do find more agents and owners to deal with than us men. In my experience it is this way anyway! So lets get the ball rolling with some fresh ideas on finding the property deals or transactions in your area or new areas.

I bought some business cards that say very basically. “I Buy Houses.”

These cards cost me $100 for 1000 cards. They are exactly what you need to get if you plan on standing out from the crowd that speak to agents, homeowners and developers every day. Also on the card is information regarding my business of vendor financing houses through our easy homeownership program.

You also need to visit the agents and developers often and spend time building the relationships with them. At first your efforts may seem in vain, but next time they get a deal they know will suit what you have told them, they will for certain ring you and tell you first.

They will obviously ring you with a whole heap of other buyers, but then and there you need to take action. You need to go and see the deal. If you do not go, usually you have just blown that relationship. These agents work on numbers and if you cannot get the money for the deals they have they move onto the next guy who does. You at least want to visit what they have on offer and discuss it with them. Give these guys feedback on what you liked or disliked. You will gain a lot of respect if you can act like a business person and can help the agent with his business.

Agents in the past have called me to offer me a great deal, but I have been too busy with another project or deal to even make the effort to see the property. Now these guys have never called me back again. I find people, maybe they move offices or agencies, and they re-find my card and ring and ask me what I am looking for, only to find out we have already spoken before.

Another great way is to get updated ‘new listings’ email alerts for real estate websites. There are a heap of great sites, but be aware that most of them seem to be updated after the agent has called his buyers lists, and those guys have the information long before you get your email alert.

Get busy with a few leaflets or flyers in the areas you want to buy in or may consider buying in. You will meet some people, talk about houses and the area and you never know what may come up. I think this is great as a low cost way to find houses as it gets you in the area on the ground and you will notice things like street crossings, lights, rental houses and you get a bit of exercise and fresh air. The conversion rate is very low with this type of advertising, but how many deals do you want this year? If you get too many great deals can’t you just sell them to an agent for a $5000 cash payment anyway? Or email me, I’ll buy them if you get too many!

I have a joint venture partner who has got some unique signage on his car that advertises he also will buy your house. He told me that he does not know if any deals have come his way from having the sign, but I am sure it was cheap enough, and it is all about branding and being out in the market doing it.

Advertise in the local papers what you want, many people look there and I have in the past found houses this way. For $30 you never know what may happen. Again if you get too many deals you can always find other investors who are willing to buy those leads off you as this saves them time and effort.

Go to open houses with your business logo printed on polo shirts. This may sound cheeky, but why not stand out and be different. The agent will remember you and your shirt long after he has seen 100 people though out the week.

Just talk to people and tell them what you do. I have found that couriers, mailmen, door-to-door people, know what’s going on in certain areas as the people who live there talk to them. Make an effort to give your cards out to people who maintain houses, gardeners, electricians and plumbers who may know of other investors, agents or owners who may be selling in the near future.

Just go out and be seen in the market place and be prepared to go out of your comfort zone to get comfortable.

The process of buying something then selling it at a higher price before you have to pay for it is nothing new in most business models, but what about with houses?

Getting control of a property that needs a renovation, a few repairs or a refurbish is usually very easy to do as most investors and new home owners are not too keen on the hard work side of buying houses.

Flipping is a great way to get your portfolio going very quickly. You can make serious cash if you get into the right opportunities and can move fast when they arise. There are some pitfalls that I know to watch out for and I am sure there are more that I have not thought of.

You need to get networking with agents who are prepared to bring you deals where you think you can get a deposit down fast to secure the deal. You then need to get a buyer to ‘flip‘ the property to.

Here is how a Flip works

1. You get a call from an agent or you find a suitable property below the market value of similar properties in the immediate area.
2. You get a contract to sign from the agent or owner. Do not go unconditional just yet!
3. You advertise for a buyer to buy the house from you just below market value.
4. Get commitment from them and a deposit.
5. Get your new buyer to sign an unconditional contract to complete the purchase.
6. You buy the house at your price.
7. The new buyer buys at the price you negotiated.
8. You make the difference minus the tax implications.

Essentially you will find that there are some risks involved and they need to be attended to before going out and offering or buying anything. Property investing comes with risk and mitigating or understanding these risks enables the investor to get closer to the rewards.

Flipping houses for profit in some states creates stamp duty implications as capital gains tax is payable at the applicable rate for the investor. In the event you cannot find another buyer straight away you are obligated to buy the houses as you signed a contract for sale.Your position then would be to withdraw from the contract and therefore lose your deposit.

I suppose in the event you have to settle on something you cannot move for one reason or another you might be able to do a small reno, value add or repaint and then list it for sale using either traditional methods, vendor finance or a 20% carry back.

I have been involved with a Flip in the southern suburbs of Brisbane and did not sleep for the days around the settlement. Investors need to have nerves of steel and plenty of guts to make this work for them.

As always your accountant and solicitors will have you better prepared for the implications in your area and will have to direct you in the correct way to do Flips - with Success!

Earlier this month the reserve bank increased official interest rates which caused many investors and homeowners to re-consider their mortgages. This poses two great questions.

1. What will the cost of changing loans be?
2. When will the costs of changing loans be paid off?

Read the Rest.

Just this morning, on my 8am walk, I noticed a house for sale. The sign had been there for some time so I decided to call the agent. When I got home I checked my diary where I noted that it was a good 3 months that it had been listed.

These ones do excite me, as vendors get desperate - as you can imagine - and they are sometimes a great boost to anyone’s equity! He has had tenants that caused or were involved with a fire inside the house. Insurance paid out to cover replacement / refurbishment cost of the fire. Total renovation and re-marketing to cover some outlay. Meanwhile the mortgage still has to be payed each and every month.

When I asked the agent some questions, she said to me that they are looking to re-rent the house out and will have the rental agreement by the end of today. I said why don’t I rent it and buy it at the end of the 12 month lease. Read the Rest.

You are able to act on your own behalf when purchasing a property, however, the documentation and settlement process can be quite complicated and includes many legal issues.

Buying a home is often the biggest purchase you will ever make and it is strongly recommended that you commission the services of a solicitor or conveyancer, who are experts in this area, to ensure that everything runs smoothly and is done correctly.

Solicitor or conveyancer’s charges vary from state to state and in accordance with the amount of time and work required. They usually cost between $750 -$2000 for their services. They arrange the title, council and any outstanding searches. They attend settlement and will interact with your bank to make sure things go smoothly when you are buying property. Read the Rest.

If you’re like most people, you have a limited memory after a few repetitive ‘inspections’ of something fairly similar…like houses. Also, if you’re like me, you can mix up some of the easiest things to remember - for some reason I am not always the guy who can repeat your name after 3 minutes at a party. But I am the guy who can turn a property that others have walked away from into something that can send money to my bank account each week, with little or limited risk.

Inspecting property is one of the loneliest and boring tasks I have had to do. I like property for the benefits, not the fact it has red bricks or yellow daisies in the garden. I like the fact that sometimes you can turn the second living area into a 4th bedroom or you can enclose a balcony to make a perfect afternoon tea area for your tenants. I just think that there are better things to do with your time. Read the Rest.

As you are well aware, if you read my blog, I use vendor finance and on-sell property using various techniques, to build wealth. I use a very simple business plan, and with that, need a certain amount of support. I like to spend my free time with my friends and family, so I use and highly recommend LOAN ALERT. Loan Alert is a client tracking program that automates my business in the areas of statements and financial compliance. Read the Rest.

It seems there is evidence to dismiss the rubbish fed by newspapers and real estate agents that a hot market is forming.

I know for myself that here in South East Queensland, there is nothing but a struggle for the agents to get properties sold and to get new tenants in their management properties. I have never seen more signs in the front of houses up for rent, looking for tenants. I have never seen so many television ads for real estate agents and property websites. Read the Rest.

Choosing the right mortgage is not just important for your needs, but could make the difference of thousands of dollars in the long term. There are so many products from so many financial institutions, all with differing interest rates and a huge range of features and fees.

Below are things to consider-

The Purpose of the Loan
Most home owners who plan to buy one home only, but possibly may like to sell and go to another house, require just a basic no frills loan. Some people may like to go out and get a loan with features like Read the Rest.

When buying property hopefully all investors know that they are up for closing costs or fees attached to buying property. The exception is that some things off the plan are eligible for a concession. The rule of thumb is usually around 5-7% of the purchase price is run up in fees, duties and charges, all of which need to be paid for at, or just after, settlement.

One of the biggest things to overcome is the stamp or transfer duty, which is the state tax related to both the purchase and registration of the property. It was introduced to obviously create revenue, but if you do not pay it you will not be able to register yourself as the title holder or new property owner.

Now when stamp duty is tallied up over the life of an investor buying multiple properties, you could run into the hundred of thousands of dollars. So, why not ask someone else to pay? Let’s ask the vendor. I did and was very surprised that they agreed to pay. Read the Rest.