Newbie needs advice

[safisana]

Some advice please...
Have a seller wanting to move a house in Taupo to relieve debt.
Rateable value $505K
Need to get a current valuation but would come in at $480 - $495K
Has been listed before at $495 but no sale and is currently with an agent to be auctioned.
He said he would take anything over $400 and is prepared to leave finance in.
Market rent on this property is $280 – 320 /wk
I have one interested party who have an annual income of $100K and are currently trying to sell their house.
If I do a SLO on this property – get as much deposit as I can from buyer
Weekly payments need to be weekly payments plus spread
Sell price equals registered valuation
If the buyer can’t meet weekly payments will try and get seller to subsidise weekly rent
Also how do I calculate weekly spread or is it just what they can afford on top of rent?

I don’t have a management company set up - what should I do here or should I use the trading entity – me thinks no due to GST issues?
Anything else I should consider?

[k1w1]

Yes. Use more punctuation.

[NZGEMS]

I would think if the seller is wanting to move a house to relieve debt he wouldnt be open to a lease option as this would tie him to you for x number of years or how ever you word it, I have property in Taupo and I understand the market is really hurting there, (may be wrong as havent spoken to the agents recently) I just decided to rent them out and sell in a few years when things improve.

If mr seller is prepared to leave finance in firstly you have to find out how much as it is probably not what I suspect you think (most of it) you need to find out what payments the seller would want, is he just happy with market rent? are you going to offer rates and insurance too (some do) for things to work for you obvoiusly you need to get it as low as possible, that is low payments, and your spread can be what ever you make up, just decide what you want out of each deal and take it from there.

You will need to pay gst when you eventually sell, assuming you are doing more than one of these, but not on your rent if you have the correct entity set up for that which you seem aware of. just set it up when you get a buyer, companies dont take long to set up.

I dont know but my feeling is this is not a property that would work for this as the seller wants to make repayments on debt, you need to be looking for properties where the seller has loads of equity and doesnt have to sell, you need the ones who are just going to rent it out themselves if they dont get a buyer but want the peace of mind of knowing the rent is coming in each week and dont want to manage tenants.

Good luck
Robyn

[safisana]

Ok thanks for that.
Appreciate the advice.

[Dean@Massiveaction]

Judging from your questions you may have heard of SLO but not had any training in it??
If so find someone locally who is doing them adn get themt o walk you through it and teach you what to do.
These are big numbers if something goes wrong and no vendor is going to give you their house for several years unless you can show you are professional.

There are anumber of ways to make this work but too involved to reply in a post. You need someone who is already doing this stuff to help IMHO.