DaveW's Deals & Such

[DaveW]

FH, yes you should have some of your investment portfolio in residential holds as part of a balanced spread. However, if you want to keep growing this portfolio you need to have money coming from somewhere right?

Whats the quickest way of making short term money? Yours might be working in a good 9 to 5 job, or trading on the Share market. Mine is the business of property trading.

[freezinhot]

True Dave, especially now that lending has become harder to get.

The part I am finding difficult at present is lending, I have traded in the past but that was a few years ago when lending was easier to come by, my income has stayed the same but lending more difficult to get so trading for me now has virtually stopped!!

I need a strategy to get me going again but am not sure which one to use, double settlements etc are harder to do and not to sure about vendor finance as you still need your own money.

FH

[DaveW]

FH, I can't comment on other strategies.
It sounds like you might want to do what BlueKiwi is doing - visit a good property broker, sell a rental property, sell the boat, credit cards, beg, borrow, downsize the home... do whatever it takes to get your working capital together again.

[DaveW]

Have you done any offers yet BK?
When making offers I give myself 10 working days with a due diligence or finance clause for an out, and maybe an early access clause.

[Bluekiwi]

Hearing back from bank this week, then I have got some RV's to do and after that a short wait to see what finance I have available.

If I go down the path of lots of S&P's I have conditions, then I might look at assigning (once the hoo haa is sorted), or moving to a cash unconditional offer if its getting close and I need to do Due Diligence.

If I have been working closely with an agent, and its looking like there is going to be an opportunity, then I do my due diligence, and then go straight to a cash unconditional offer.

I belive I can save 20k on purchase price this way, nothing speaks louder to a vendor than a cash unconditional offer (besides early access).
Why I like mortgage auctions as well, there is no mucking around, straight to the point.

Vendors also appreciate the fact that if they sign the deal will go through, as these days they have a lot that dont due to many reasons including finance, and a clean offer in the right circumstance is worth 20 to 30k more.

[Davo36]

So DaveW, I have a couple of questions regarding a deal you mentioned the other day. The one where you made $60k on an apartment in a week.

Can I ask, how did you find this deal? Was it advertised or did an agent bring it to your attention? How did you go about buying it so cheaply? Did you go in with a low clean offer?

How did you go about selling it straight after for $60k more? Didn't they buyers get suspicious that you'd only owned it for a short time? Didn't they balk at paying $60k more than you just paid? I'd be really interested to see how this part of it works.

[DaveW]

Hi Davo, I saw the RE signboard while I was driving in the area looking at other properties. I could see the for sale sticker stuck over the auction sign so I enquired about how the auction went and the vendor expectations.

The key thing was the vendor motivation was high, and I could tell the auction was a failure because of 1) bad marketing and 2) price guide was pitched above the market.

My initial offer was fair, but during my due diligence I had to renegotiate the price on the basis that the downstairs was not permitted, the bank wanted 30% deposit and the valuation was not to satisfaction.

I got a professional photographer in and worded the advert with urgency, high lighting the RV, the potential, and the fantastic location. The new buyer was happy paying the RV price (the GV was much more).

The important thing in a depressed market is to sell fast, and not be too greedy. The original vendor was greedy and when the property is on the market a while it gets stale and people start to wonder what is wrong with the property. When I relisted it on trademe it was a fresh new listing with nice photos and a realistic price.

[Bluekiwi]

So simple.

But look at how it happened
By taking action.

He was looking at property physically, he saw something, he called an agent.

I think the deals are there if your actively in the market, approved to by, and get out there, they will come along, but you need to take action and look, and know it when you see one.

[Davo36]

Oh yes, I certainly take that on board BK, you have to be out there mixing it up for this sort of thing to happen. You can't just be at home in front of the telly.

It looks like it was good timing for you DaveW, the auction had finished, the vendors were all crestfallen at not having had a sale and then in you come with an offer... maybe not the offer they originally wanted, but an offer never the less.

DaveW, just out of interest what was the value of the unit? Roughly?

[DaveW]

mid $400,000s. Yes behind this one deal could be 30 other offers that never worked out.

[DaveW]

It's one of the true mysteries of life isn't it.

Success is available to everyone yet only about 20% of the population choose to live it. (or is it less?) Its hard to know really because What is "success"? I tried to post the question in a thread somewhere some time ago but you just kind of get laughed at.

But you're right, hard work brings success. Plus you have to think as well.

[DaveW]

It could be a higher percentage figure for the population of Property Talk contributors though

[Louise Borton]

I may have to stop reading this thread, my bank manager will go mad!! We have 3 residential properties with a plan to hold them long term but would love to start some trading......may end in divorce from husband and bank the rate I am going!!

[Bluekiwi]

I may have to stop reading this thread, my bank manager will go mad!! We have 3 residential properties with a plan to hold them long term but would love to start some trading......may end in divorce from husband and bank the rate I am going!!

Your bank wont give you finance to do trading.
If you want to do it and you have equity you need to do it smart.

See your broker and tell them what you want to do.
No point seeing the bank direct, you need to have a tactical application put in, and know what you are doing.

Or you could see mine:
Charlotte Lockhart-Jones at Mike Pero 021 400 240.
Tell her you want to do the same thing as Paul Magill.
And she will look at your situation and advise if you can.
Or she just might tell you to buy 2 more holds instead.

[DaveW]

Louise, it certainly is a lifestyle change (for the better if you grab it with both hands and make a success of it). It is worth the divorce from the bank and in some cases the husband too. If he doesn't share your ambitions then he sure better make up for it in other departments!