Tips and Gems

[SimpleSimon]

I notice that Ron often adds little investment tips and gems of wisdom from his DVD set in his posts. It got me wondering if maybe it was worth setting up a thread dedicated to tips and gems that others might have heard and would like to share.

I'll start the ball rolling with something a property manager said to me last week. I was saying how I was looking to purchase cash-positive properties and she said...

"You don't buy cash-positive properties - you create them!"

[muppet]

TIP - Just remember the REAL DEALS are not there waiting for you. They are only there briefly when you just happen to be looking in the right place at the right time. RonHoyFong

TIP - “Set goals. Achieve them. Enjoy the journey.” - Julian

TIP - REMEMBER - THE REAL DEALS ARE NOT FOUND AT THE AVERTISED PRICE; THEY ARE FOUND AT THE NEGOTIATED PRICE. RonHoyFong

TIP - "WHAT IS THE SELLING RANGE?" RonHoyFong

TIP - WORDS CAN INSPIRE, THOUGHTS CAN PROVOKE, BUT ONLY ACTION TRULY BRINGS YOU CLOSER TO YOUR DREAMS. " GET INTO ACTION ! " RonHoyFong

TIP - NEVER PUT AN OFFER IN TWICE IN A ROW. RonHoyFong

TIP - NEVER USE YOUR COMPANY NAME AS IT TELL THE VENDOR YOU ARE AN INVESTOR, INSTEAD USE YOUR PERSONAL NAME AND OR NOMINEE. RonHoyFong

TIP – “DEALS DON’T START HAPPENING UNTIL YOU START HAPPENING TO PUT IN THE OFFERS.” RonHoyFong

TIP – BUY ONLY INVESTMENT PROPERTIES THAT YOU CAN ADD VALUE TO INCREASE YOUR EQUITY. RonHoyFong

TIP - During open homes I check in closets (for holes in walls, water damage, check for size/capacity etc.) and from time to time have been known to come across things like, all his (or her) clothes/shoes are gone. There may have been no clothes at all in the closets indicating absentee owners which would lead you to "Clue 3". Are the gardens in a mess, is the house looking run down (is it all becoming a bit too much for them to handle). Marcus

TIP - "Please remember that Free Advice from those who think they know the answer is often the most expensive. Ask any of those that give such critical advice first whether they seriously participate in what they preach, you often find that they speak from bad experiences rather than good experiences." RonHoyFong

TIP - "If you didn't get anything out of the seminar then don't blame the teachers because that won't change them, you need to blame yourself and it is your own attitude you need to change before you can go ahead." RonHoyFong

[RonHoyFong]

Thanks for the opening Compliments.

Tips to be of any real value should be qualified as I try do along with my postings

http://www.propertytalk.co.nz/postt2651.html

http://www.propertytalk.co.nz/postxf2755-0-0.html

So much easier to understand through EDUCATION when it relates to a particular ACTION, and to then use when it relates to an OPPORTUNITY

Cheers Ron
Email: [email protected]

RONS DVD TIP - "The difference between a successful person and the unsuccessful person, is that the successful person through EDUCATION will take ACTION to create the OPPORTUNITIES" - Phill Jones RICHMASTERY

[muppet]

Hi Guys

Try this tip next time you are buying, put on the S&P Agreement:
Purchaser is allowed access to make improvements to the property as soon as deposit is paid.

Regards

[SimpleSimon]

Hi Guys

Try this tip next time you are buying, put on the S&P Agreement:
Purchaser is allowed access to make improvements to the property as soon as deposit is paid.

Regards

I like that one and would have liked to have incorporated it recently! But what are the insurance/liability issues?

[muppet]

Hi Guys

Have liberated this from one of Chris's postings:

If I was starting out again and in a market I didn't really know I would be looking for an agent who would work with me and had a "can do" attitude. From them I would be after as a priority:

Motivated vendors, ability to add value, ugly houses or houses a long time on the market.

However, from their listings (and for any house they pitched me) I would want to know either in writing or verbally:

The address of each property that had the potential to cashflow the way I wanted it (for me it was 3 bedrooom plus with garage on full site in a certain price BAND)
What it was (eg 4 bedroom plus sleepout on subdividable section)
Why the vendor was selling. (ask this verbally as you go over the houses with the agent)
The list price
What the agent THINKS you could own it for
What the property would be worth and/or would/could value to
Work to be done (general deferred maintenance and/or anywhere the agent thought value could be added)
What it would be worth DONE up and or would/could value to
What it would rent for (either as is or done up.)

From this I would decide the amount of my offer and the agent would get a fax. If I didn't know the market (or was unsure or new the offers would be subject to a ratchet clause and if accpeted (with or without negotiation) the onus was on the agent to get me the valuation that they told me they could get.

Regards

[kelster]

One tip I got from a RE agent was target empty or unkempt (dirty) houses. Vendors with these properties can be tempted by fair but reduced prices. Often all a place needs is just a clean and then you're sweet.

[martyparty]

Never buy from an agent

My tip is never buy from an agent - deal direct with the vendor or builder/developer and get a price reduction of 3.0 % (or more!)

Also bear in mind that the agent works for the seller - with an undisclosed price, they will milk you to maximise their commission - anything you say to them will be passed on to the seller and used against you!

My dad learnt the hard way!

One tip I got from a RE agent was target empty or unkempt (dirty) houses. Vendors with these properties can be tempted by fair but reduced prices. Often all a place needs is just a clean and then you're sweet.

[Hec]

Funnily enough I have had the most success when buying and selling(privately) by being totally up front honest. As in, "I am an investor and do this for profit" as you look them in the eye with a goober face.....
Hec

[Dorien]

My dealings with agents have been varied over the years. There are two types of agents I look for. The first type is an agent who is also a seasoned investor themselves and has more than 5 properties and therefore understands the investment game.

The second type of agent is a 'new' agent and eager to learn the game. Often these agents are fresh out of the Real Estate Education program and are keen to do business. If they are 'teachable' it is a good idea to spend a little time with them over coffee and teach them what you want them to know. eg your formula for buying renovation properties.

Dorien

[JohnL]

Its hard to find that great agent who will put you at the top of their list of investors to contact when they get a new listing that needs an urgent sale. But if you are giving them repeat business then they seem to start working for you as much as the vendor, perhaps more!!!

After three years of actively being in the market I only have three agents who come in to the above category. And they are awesome.

John

[Cliffy]

But if you are giving them repeat business then they seem to start working for you

John, do you mean repeatedly buying from them or using them to sell?

[JohnL]

A bit of both. An example is my good Pukekohe agent insisted I attend an auction in Aug last year(which I don't usually bother with during a boom) as she perceived a lack of buyer interest and the vendors were off to Aussie. I picked it up for $150K. She had a conditional buyer who immediately signed it up for $185K.

The conditional buyers hadn't had much luck selling their own home due to poor performance by the local agent in Waiuku so my agent convinced them to change to her. She found them a buyer as well.

So three commissions later and we are all happy.

Thats an example of a great agent (and no, she wasn't the one who told the first vendors that an auction was the way to go in an below average area in town !!!).

She only contacts me when there is a good deal in the offering, meeting my criteria. She doesn't waste my time telling me about all her listings.

After three years I have only found three agents this good so far (four if I count the one who specialises in life style blocks and helped us with our own properties, but well outside my investment niche!!)

John

[Cliffy]

Sounds like you've got some great agents.

I've yet to find one that is quite in that league.

Guess I need to try a bit harder!

Grant

[Oopsick]

Just remember they love cappuccino