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  • #46
    Originally posted by pooomba View Post
    You'll find them there if you look hard enough. Motivated vendors don't all congregate in certain suburbs. In fact in higher socio economic areas I would say you may well have more distressed vendors than further south.

    The only people who never find any deals are people who never take any consistent, targeted action.
    Good and interesting advice Dean. I just couldn't understand if "higher socio-economic areas having more distressed vendors" necessarily translates into higher yields or could it be because the original yields have been so bad the current investors are going bankrupt! (still not necessarily meaning the new yields will be "good")

    Can you recall a couple of "better" areas where you've seen this happen?

    Comment


    • #47
      Originally posted by halfempty View Post

      Saw 3 today with returns from 9% to 11.5%.

      Busy working on buying the one with 15.5% return from last week.
      Half, where about are those beauties? Tell me they are neither in a "disadvantaged area" nor in a "provincial" one and suprise.

      And the last one wouldn't be a current or prospective boarding house eh?

      Comment


      • #48
        Bugger that find your own

        Na just kidding one's in Christchurch the others in Wanaka.


        Last one not a boarding house it's multiple flats.

        Comment


        • #49
          Frazer you need to watch my DVD. It's a numbers game, an agent can't tell you to take a hike. He's legally required to present any written offer. And in this market they are falling over themselves to present them.

          Make 20 offers a week, you'll get at least 1/2 of them presented.


          67910241.
          What I mean is that in some better areas you may have investors or owners with bigger mortgages, therefore they are in more trouble. Especially as many people's incomes have dropped. It's people who have been earning big money on commissions etc. who are really hurting now. In areas like Meadowbank, Dannemora and Stanmore Bay I have seen some amazing deals lately.
          The amount of people ending up at mortgagee because no one would try to buy their property would surprise you.

          So as investors we need to get out there and help people out of their problems if we can.

          Many people would rather take a big hit on paper value than end up in the Property Press with a black and white mortgagee advert.

          I travelled the country telling people this in May and June on my good news road show, where were you all :-)

          Comment


          • #50
            Yeah get out of Auckland and the numbers are even better. I'm looking at some stuff in Rotorua that is seriously cashflow positive. In the provinces it's lying around all over the place.

            Comment


            • #51
              Thanks Dean... I'll get out there and make some crazy lowball offers and see how we go, they can only say no, right? :-)

              Throw your heart over the bar and your body will follow - Norman Vincent Peale

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              • #52
                Think about the market

                you know - Pooomba has it right

                Home and incomes are the way to go and yes I am buying at 30% below valuation and selling at 15% below valaution - buy a bargain to sell a bargain is what you do in this market

                You need to get out into the country - the deals are pretty useless - yeah right.

                here is what I have seen in the last 2 months
                Subdivision in Taupo - sales of land 35% below valuation - we bought and sold
                Home and incomes - Canterbury 25% below valuation and C/F positive
                Rotorua - go for Lease options

                go find the areas swimming upstream and BUY

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                • #53
                  Kiwi, you sound very much like that person.
                  You have asked many, many questions and been given many answers.
                  But, as far as I know, you haven't actually bought anything yet.
                  muppet, I'll take your suggestion in a positive way, because I'm a nice bloke.

                  A less nice bloke would suggest you have no idea what I own or don't own, and to mind your own business. How the hell would you know if I'd bought anything.

                  The fact I ask questions, give answers or simply voice opinions has no relevance.

                  Maybe I just took your wording the wrong way and you're not really that arrogant.

                  Comment


                  • #54
                    Originally posted by halfempty View Post

                    Na just kidding one's in Christchurch the others in Wanaka.
                    Huh, for real?

                    I've thought Otago Lakes were growth therefore pretty rubbish yield-wise... oh well, always good to refresh all old semi info.

                    Comment


                    • #55
                      There's always freak deals out there.

                      I'm finding about 13% net yield is about the least I will look at 90% of these are in locations or conditions I wouldn't consider.


                      But every now and then you find a gem and make bank.

                      Comment


                      • #56
                        Originally posted by Building buddy View Post
                        you know - Pooomba has it right

                        Home and incomes are the way to go and yes I am buying at 30% below valuation and selling at 15% below valaution - buy a bargain to sell a bargain is what you do in this market

                        You need to get out into the country - the deals are pretty useless - yeah right.

                        here is what I have seen in the last 2 months
                        Subdivision in Taupo - sales of land 35% below valuation - we bought and sold
                        Home and incomes - Canterbury 25% below valuation and C/F positive
                        Rotorua - go for Lease options

                        go find the areas swimming upstream and BUY
                        It's a good idea.... but the steady stream of suckers is drying quicker than the Hunter Valley. You better milk that baby while the going's good.

                        Comment


                        • #57
                          Excellent advice from Poomba once again...

                          And yes the DVD series from the Massive Action website is invaluable.

                          Poomba a question for someone just getting started:

                          How is Trading going for you at the moment, is liquidity in the Auckland market working for you, your bread and butter doublesettlement you talked about in the DVD, how are they going, in this thread you have only mentioned CF+ positive buy to holds.

                          I am not wanting to get too much into Buy & Holds at the moment as I would get myself leverage locked reasonably quickly. (maybe just 1 or 2 CF nuetral).

                          But I do want to get into Trading (for me its buy under value and cosmetic reno that I want to do).
                          BUT I dont want to be caught out by a falling market.
                          And its obviously not the time for long term settlements.

                          Do you think the Auckland market is stable enough to be able to buy well, add value and then be able to onsell reasonably quickly (say you are also negotiating early access to renovate and doing it in 2 to 3 weeks)

                          Cheers Paul.

                          Comment


                          • #58
                            Long term settlements are probably more the way to go.
                            Last edited by Tucker; 31-07-2008, 11:06 AM.
                            Nigel Turner

                            Comment


                            • #59
                              In Auckland right now I am going for minimum 2 years settlement, (normally 3 plus) or just straight options for 3 to 5 years.

                              You have to be very careful with anything you need to get in and out of quickly in this market. Even at 50% discount finding a buyer can't be guaranteed.
                              If you find deals cash flow neutral or positive with enough equity on purchase you would be able to get into more than 1 or 2 B&H's.

                              And if you could only do 1 or 2 deals but end up with 2 self funding IP's and 200K additional equity, that is hardly a bad result.

                              You can then do no money down trading strategies as the market turns.

                              Comment


                              • #60
                                Thanks for another interesting comment Dean

                                Originally posted by pooomba View Post
                                In Auckland right now I am going for minimum 2 years settlement, (normally 3 plus) or just straight options for 3 to 5 years.

                                You have to be very careful with anything you need to get in and out of quickly in this market. Even at 50% discount finding a buyer can't be guaranteed.

                                And if you could only do 1 or 2 deals but end up with 2 self funding IP's and 200K additional equity, that is hardly a bad result.
                                A couple of very interesting tactics (if they work), but forgive me if I, a newbie compared to yourself, find them too good sounding to be true.

                                How do you get the vendor to sign with such a long settlement (2 years plus)? I mean, what's in it for them - if they can survive for that long, why'd they want to sell, especially sell cheap? With long settlement, they really don't get much cash in hand do they (and I've always thought that'd be your main selling point if you went out and cut someone's price & expectation viciously!)

                                Also, what did you find the best way to improve your after-purchase equity/valuation in the today's turbulent times? Aren't the banks also a bit more cautious about the valuations supplied to them?

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