How do you do it? Where do you find the buyer? Any experience and story?
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Those are big questions to answer in a forum. Generally when I was doing this full time I had an agent to buy from and another to sell from. I always favoured private sales when I was buying so only had one side with an agent.
There are various ways to achieve the process.
I used a clause allowing me access to show prospective buyers and I would disclose that I was trading the property. Subsequently I never had issues with access etc.
The market has changed quite a bit so some sellers will be less keen on allowing you to do this, especially with all the nonsense in the media. Nevertheless I have done 4 trades this year and had no issues with any sellers. Tell them up front what you are doing and why they should let you and the worst they can do is say no.
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What Bobsyouruncle said. Basically you ask the vendor for access. If you just tell people what is happening it normally is OK.
Make sure you understand the tainting rules also.Free online Property Investment Course from iFindProperty, a residential investment property agency.
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You can learn to be a trader which involves finding sellers and buyers. it's a skill you can acquire. Involves, amongst other things:
Building a list of investors to sell to.
Cultivating relationships with real estate agents.
Learning to always be asking people if they are looking to buy or sell a home.
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You have a sell strategy and work backwards from there. We work with traders quite frequently.Free online Property Investment Course from iFindProperty, a residential investment property agency.
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Originally posted by Bobsyouruncle View PostYou can learn to be a trader which involves finding sellers and buyers. it's a skill you can acquire. Involves, amongst other things:
Building a list of investors to sell to.
Cultivating relationships with real estate agents.
Learning to always be asking people if they are looking to buy or sell a home.
Cultivating relationship sounds simple but it's damn hard. This is where I look at people and just wonder how they do it? I ask questions but actually forming a lasting relationship is much more difficult.
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But how do you show the house to the buyer? Do you use the same agent you bought from?
but if you use different agent, preferably from different company you should be ok. Many people do it in south AKL.
trading this way could be/ is been challenged by the REAA, especially if you market the property but you don't actually own it. Ie take title.
unfortunately it's to risky in NZ if you can't settle the purchase, I almost completely stopped doing contemporaneous settlements. ( I will do it if I gone unco on deal but fined a better suitable, but I wouldn't advertise it and I could settle it if need be.) in most states in the USA is very common and called wholesalling.
one thing to remamber is ALLWAYS make sure the deposit you get from your buyer is double of what you pay.
ie. You pay 20k deposit when you go unco and get 40k from your end seller. This way you profit (or some of it) is given to you upfront.
I hope that helps.New Zealand's #1 Marketplace for Property Investors & Sellers!
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contemporaneous settlement.
another way contemporaneous settlement called is double settlement.New Zealand's #1 Marketplace for Property Investors & Sellers!
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Wholesaling and Wholetailing can be a "ledjit" business in the USA. here in NZ it's Grey area boardering illegal now days. Assigning contract for fees as most wholesalers do, while marketing a property you don't actually "closed" on is boardering crime if you ask the REAA. You are "bringing about transaction of land"'without licence and some got big fines doing that.
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