Working up to a deal

[Volatile]

Alright wonderful people at PT.

I've found a property in a high growth area that is a 2x2 residential property where there is a great demand for properties by tenants.

Overseas and motivated vendor, i'm not really sure after speaking to the agent how motivated - she just said they are downsizing their portfolio.

I'm beginning to think they maybe not motivated and the agent is just trying to raise the hype.

Previously tenanted at $550pw.

RV $350,000

What should i be doing before a view the property on sunday?

I have tried to pull a report on QV but it just says "Sorry, an Essential property guide is not available for this property. This is usually because it is not a residential or lifestyle property"


Cheers

James

[Mark_B]

There's a few things you can do...

Previously tenanted? So, it's now vacant? Well you'll be wanting to confirm what the market rental for the property is. Ask to see a copy of the former leases. And also ask for them to provide a letter with the market rental they estimate.

You might also want to head down to the local council and look at the property file. Take copies of what you can. If you're thorough it saves you from getting a LIM.

Got access to real estate stats? Well you could start putting together a list of comperable properties and what they sold for. It will be a good indication of whether the price is about right, too high, or too low.

Visit other open homes in the area (of comperable properties). See what else is on the market. You might find something better. The more you look the more you will get a feel for what is being marketed for how much.

If you're so inclined (and maybe you dont know the area that well) observe the street in which it is in. Watch the comings and goings. You might decide that you dont like the neighbourhood.

Just a few thoughts.

M

[Don and Liz]

You might also want to head down to the local council and look at the property file. Take copies of what you can. If you're thorough it saves you from getting a LIM.

nice - we photograph the files now. far more efficient than photocopying. download and save or dump depending on the outcome.

[Dean@Massiveaction]

James, until you have a contract don't waste your time doing anything. If it is a hot deal it could go. So step 1 is get the property under contract. You can always negotiate the price during due diligence. The final price is never decided till settlement day.

[BusyLizzy]

I have tried to pull a report on QV but it just says "Sorry, an Essential property guide is not available for this property. This is usually because it is not a residential or lifestyle property"

Try it again - I believe a few people have had problems at first, then it eventually works. We even managed to get for a lifestyle property in Waipu after a few goes.

[Volatile]

James, until you have a contract don't waste your time doing anything. If it is a hot deal it could go. So step 1 is get the property under contract. You can always negotiate the price during due diligence. The final price is never decided till settlement day.

Thanks Dean,
Yeh i was unknowingly going about the process incorrectly. One of the valuable things i pick up at the Wellington PT curry outing cheers guys!

[Snookie]

Damn... I knew I should have gone for the curry! Next time aye...

So get the property under contract before anything else? - as long as you have done your homework... How scary... Although I guess the clauses save you from harm. Gosh I have a lot to learn - and DO!

Cheers
Leonie

[Dean@Massiveaction]

Snookie as long as you have an escape clause you can do all your homework AFTER you have the property under contract

[NZGEMS]

and if it is a great deal it WILL GO WHILE YOU THINK just was at a Hamilton meeting this weekend for new investors very good it was too, and afterwards at the bar was talking to one of the people there and he had been rung about a great deal in Hamilton on Thursday, this was a few weeks ago, he was going away for the weekend so he thought he would look Monday, and BINGO by monday it was unconditional with someone elses contract, so lesson learned, if going away for the weekend at least tie it up subject to viewing first.

The great deals get snapped up quickly and usually before the public even hear of them.

[Ivanhoe]

You can always negotiate the price during due diligence. The final price is never decided till settlement day.

Hi Dean!
So how do you re-negotiate price and what's your reasoning for re-negotiation?
TA

[Dean@Massiveaction]

Hi Ivan.
Some of my examples have been.
Reduction for rubbish on property
broken windows
Any issue discovered from council
Being asked to settle earlier or later
The list goes on and on and on.

[Volatile]

Damn... I knew I should have gone for the curry! Next time aye...

So get the property under contract before anything else? - as long as you have done your homework... How scary... Although I guess the clauses save you from harm. Gosh I have a lot to learn - and DO!

Cheers
Leonie

Hey Leonie, curry was good and company was inspiring.

[Snookie]

Thanks James.... will be in next time!

I think the Acumen crew sent us a good due diligence clause. Will dig it out. Thanks for the tips and stories about when to secure contracts - I am well aware I have a lot to learn!

[Dean@Massiveaction]

Hi Snookie. I've got a bunch of clauses you can use HERE
Purchasers condition, solicitors approval and due diligence are all due diligence clauses.

[Snookie]

Dean - You rock!

Thanks Mate
Leonie