Investment property deals

[gavinc]

This is interesting - see what the ASA had to say about below valuation claims - http://www.richmasteryexposed.com/index.php?id=12
<Jones says all his recent purchases have been between 12 and 23 percent below valuation. Last year, the Advertising Standards Authority (ASA) upheld a complaint against Richmastery for advertising “property deals 20-45 below valuation emailed to you daily”. This was misleading, said the ASA, as the complainant said the properties offered were only 10 percent average below the claimed valuation. The board observed that in advertisements of that nature “there was no room for exaggeration or hyperbole as financial matters were of great significance to a consumer’s well-being …”>

[Orkibi]

we agree to disagree gavinc,

I build a buy and hold portfolio and leveraged from the equity gain - you are making things sound complicated, sometime people sell properties bellow the true market value for different reasons.
--- it is not a myth - it maybe a Myth for you as you don't believe that it is doable! many time i came across Properties for sale that the Asking price was bellow what the market would pay.

Im not going to argue my case here as i don't feel that i need to, I can give you some other recent examples for buying well bellow value just call me if you wish.

you could keep doing this for ever until you had so much money you wouldn't know what to do with it.

Deals as i gave you an example don't come every day, BUT some other Great deals do. I missed out in the last year or so on some other great deals which other "Believers" in the myth gained from.

I believe Richmastery had a similar business model - I cannot seem to contact them - maybe you could help with some contact details?

they are gone years ago, from memory 2006 or something. The Property Investors Network website is nothing like RM in ALL ASPECTS - Do your own research about RM and you will find that there is no resemble between the two.

Anyway, why would you want to contact RM?

Isn't value the price someone is prepared to pay

NO, Not necessarily - If that terns in to a market level "going rate" backed by comparable sales Then i would say yes.

[Simmo]

Just my 2c


Tread with caution and carry out your own independent due diligence as Orkibi suggests. I have seen some finders base their "instant equity" on ratings valuations or valuers street side estimates. These can be used as a loose guide, but know that they are no substitute for an independent registered valuation. Do your own research via TradeMe to cross-check rent levels. Dealing with a Licensed Buyers Agent certainly adds another layer of buyer protection, and adds a degree of accountability for the listing.


A while back I inspected this place and then about a fortnight later it came up as a "deal". During my inspection I found about 1/3 of the area underneath the house was under water - that explained the uneven floors and the significant crack in the brick out back. If the finder had carried out a half decent inspection of the place, they would have noticed this as did I. Caveat Emptor.


Please don’t take this personally, you could be the most straight up property guy in the country for all I know, but the challenge for you would be to ensure this type of practice isn't associated with you or your site.


I totally agree with being able to buy below value etc, I'm pretty sure that's how most on this site build their portfolios. I reckon every property has a range of what its worth, where the value lies within this range is inversely proportional to the vendors motivation to sell.Just my 2c

[Orkibi]

Please don't take this personally, you could be the most straight up property guy in the country for all I know, but the challange for you would be to ensure this type of practice isn't associated with you or your site

Thank you simmo, I don't take that personally - the site is not responsible for nay information presented by the "sellers" if it is a private sell or Realtor's listing.
Same like Fairfax media is not responsible for any misrepresentation or anything of that nature on TradeMe.

As mentioned over and over again on this forum, for years, when buying an investment property one should always do their own Due Diligence or/and take independent advise.

[Simmo]

You seem to be building the traffic so good luck to you.

[Orkibi]

Its is like a message board or property for sale Newspaper classified advert Simmo.

I know for a fact that every one of the regular site listers been closing sales and having happy buyers at the other end. although we don't know results of every transaction we do often receive positive feedback and testimonials .

Thanks, yes the traffic is good and growing daily with new subscribers and site users.

Anyone is WELCOME to visit the site read the articles, visit the Deal Room and use the Free Property Cash flow and equity analysis software etc.

[gavinc]

The problem I have with sites like yours are that they are targeted at the new investor and in general (but not all) promote crap properties in crap areas that will attract crap tenants of the sort seen on Renters -
The use of illegal sleepouts to bump up the return figures is also deceptive.
This is fine for the experienced savvy investor who knows what to expect and can handle the associated hassles in managing such properties but it is not for the novice investor.

[Orkibi]

gavinc come on dont be so doom and gloom, what do you mean

targeted at the new investor

that's nonsense there are investors who use the site and buy who own over 10-20 properties and been investing in Real Estate for over 20 years.

you can have people buying the wrong property on any website like Trade me or Real Estate etc etc.

Don't be so negative and go and buy your next Investment property that stacks up.

[gavinc]

I am not being negative just a skeptic .
<Looking for your first investment property and aren’t sure how to go about it?>
That is a quote from your site and is the basis of my previous post.
In case you missed it I will say it again - I don't see no problem for experienced investors.

[Orkibi]

Looking for your first investment property and aren’t sure how to go about it?

okay cool.

I think it is more referring to the knowledgeable articles on the site and the option users have to contact the contributors for advice. (not saying all advice will be free but they are there if anyone require professional advice)

I know that some users contacted the contributors for advices and from then on they become happy costumers.

[gavinc]

Onsprada - have a look at this by Olly Newland. He gives his view of property finders.
http://www.interest.co.nz/property/5...perty-investin

[Mr$]

As usual Olly style writing, slag everyone but himself.

Have you seen the comments:

by scarfie | 17 Feb 12, 10:11pm

The most disappointing aspect of an article like this is that in typical Olly style, that there little or no risk to investing in property. No mention at all that property is an illequid investment. No mention that Olly has been bankrupt before for with his property investment activity. If any intelligent investor was to look at for instance, Exter's Pyramid, then they would find that real estate is not that secure at all. Property investment under a fractional reserve money system is really for charlatans.

Reading between the lines "Property Finders" is the thing of the past (Sadly), but he is forgetting how useful they can be for the investor who have no time to look for a property or good negotiation abilities.

[gavinc]

Its human nature we never slag ourselves off - it does not mean his points are not valid.
< Property investment under a fractional reserve money system is really for charlatans.> so what is the alternative?

[Momo]

Property is a block of 3x 2bedroom flats in AKL on separate titles with registered valuation at the time of purchase of $245k each from memory.
purchased at 520k.

1. I could have sell each flat no problem next day for around valuations
2. This is around 28% bellow market value all day long.

Hi Orkibi: What area is this if you don't mind sharing? Thanks

[Orkibi]

What area is this if you don't mind sharing? Thanks

Central Papatoetoe