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  1. #11
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    Apr 2009
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    BK, If your LVR is less than 80% then your broker should be able to get you more funds given the new property will have a rental assessment of $300pw, say.

    The more money you can get your hands on the more opportunities will be available to you. How risk averse are you? Explore other finance options as well.

  2. #12
    Join Date
    May 2008
    Location
    Torbay, Auckland
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    Quote Originally Posted by DaveW View Post
    BK, If your LVR is less than 80% then your broker should be able to get you more funds given the new property will have a rental assessment of $300pw, say.

    The more money you can get your hands on the more opportunities will be available to you. How risk averse are you? Explore other finance options as well.
    Na... tanking the LVR to get the funds to do flips.
    Yep I know it, by limiting myself to a price bracket, the pool of potential deals becomes a puddle.

    But hey got to start somewhere.
    I am not risk averse, but am "High Fee" averse, what alernative finance options are there.
    One I have is selling my boat to add about 30k to the pool.
    And I could tap credit cards for another 10k If I wanted to.

    Dave you mention 3 out of 10 deals not working so well.
    Could you give us examples on the deals that didnt work too well, what was it that went wrong and what mistakes you made.

  3. #13
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    Apr 2009
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    Yes sell the boat, use all your credit facilities, what else? personal loans (secured by the boat? car?), borrow from your Aunt?. Don't worry about finance fees, this is a small price to pay. Getting your first deal off the ground is hard work! you've got to beg and borrow to get yourself going.

    I think you will find it is the 3 bedroom family homes, nicely presented with good floor plan which are selling well. Go sit and watch the local Auction rooms to confirm this.

    The mistakes I made happen when I took my eye off the ball. One place was in a flood zone and when i came to sell during the winter it was soggy as! lesson.. don't short cut due diligence. Another one I got the estimated selling price wrong because the stats provided by the agent were doctored to jack up the prices. lesson.. don't trust agents.

  4. #14
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    Apr 2009
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    BK, worry about the finance later. I used to make the mistake of worrying about the money.. it truely is the root of all evil! (the loving of it, that is).

    Find the deal. I meant it when I said to you in another thread you need to "become a property finder like the rest of us"!

    Forget the terminologies and any negative stigmas attached to them. Christ even when I say I did a deal, the word deal can conjure up negativity in people.

    Forget about all that nonsense and go find what you think is a good deal and report back here with your finding. You don't need to give addresses.

    You might be thinking now that if I help too many people I'm going to lose out on deals for myself. Thats not true.

  5. #15
    Join Date
    Oct 2006
    Location
    Auckland
    Posts
    570

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    Quote Originally Posted by DaveW View Post
    Davo, I've been investing in residential since 1996 and commercial only since 2008. The rules are completely different for both and I prefer to hold on to commercial and trade residential anywhere in Auckland.
    Hi Dave,

    Why are you trading now on residential and not looking to hold, would it not be the most opportune time now to hold on residential or have you found a strategy that allows you to move stock even in these times.

    FH

  6. #16
    Join Date
    Apr 2009
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    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.

  7. #17
    Join Date
    Oct 2006
    Location
    Auckland
    Posts
    570

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    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
    Last edited by freezinhot; 27-09-2010 at 11:41 PM.

  8. #18
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    Apr 2009
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    942

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    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.

  9. #19
    Join Date
    Apr 2009
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    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.

  10. #20
    Join Date
    May 2008
    Location
    Torbay, Auckland
    Posts
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    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.


 

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