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  1. #11

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    Why are you guys wanting to move from what works for you to something else? Is the reward worth the risk or are you just looking for a new challenge?

  2. #12
    Join Date
    Apr 2009
    Posts
    942

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    Quote Originally Posted by nick000 View Post
    Development is hard. Whatever you think your final profit will be, half it. Never go into a deal if the margins look too tight
    Yes that's right you need to allow for contingency, material price hikes, labour absence, mishaps, the unexpected, etc. If you intend to sell it you should be able to afford to hold it.

    You should still come out with a 100% profit.

  3. #13
    Join Date
    Apr 2009
    Posts
    942

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    Quote Originally Posted by Don't believe the Hype View Post
    Why are you guys wanting to move from what works for you to something else? Is the reward worth the risk or are you just looking for a new challenge?
    For me it's about going where the money is.

  4. #14

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    Yea. Bob Jones says that in rough math the return should be double as when you're finished, you'll end up with a much lower return

  5. #15

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    Quote Originally Posted by DaveW View Post
    For me it's about going where the money is.
    Fair enough. For me an additional $ is far less attractive than risking the pile I already have.

    Some say to me that the natural move is from residential investing to commercial - I know nothing about this game so why would I take that risk EVEN if the return is higher as so is the risk.

    Others say become a developer - now what a minefield that is... we've developed our own land and done so successfully but even on those projects without the deep pockets we have it could have ended up differently.

    To me chasing the $ is ok up to a point - and to be fair I did that for a long time in a way that didn't expose me beyond what I could cover (financially) and the risks I took were calculated - but once I achieved my target the plan was to de-risk which we've been doing ever since.

    If I want to keep busy and make $$ I do more of what I know.

  6. #16
    Join Date
    Apr 2009
    Posts
    942

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    Quote Originally Posted by Don't believe the Hype View Post
    Fair enough. For me an additional $ is far less attractive than risking the pile I already have.

    Some say to me that the natural move is from residential investing to commercial - I know nothing about this game so why would I take that risk EVEN if the return is higher as so is the risk.

    Others say become a developer - now what a minefield that is... we've developed our own land and done so successfully but even on those projects without the deep pockets we have it could have ended up differently.

    To me chasing the $ is ok up to a point - and to be fair I did that for a long time in a way that didn't expose me beyond what I could cover (financially) and the risks I took were calculated - but once I achieved my target the plan was to de-risk which we've been doing ever since.

    If I want to keep busy and make $$ I do more of what I know.

    I agree with your last points about not over exposing yourself.

    I think Dolf de Roos put it best about a $3M deal being as much work as a $300k deal.

    Renovating residentials was actually more time consuming.
    Last edited by DaveW; 11-08-2019 at 09:51 PM.

  7. #17

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    Quote Originally Posted by DaveW View Post
    I agree with your last points about not over exposing yourself.

    I think Dolf de Roos put it best about a $3M deal being as much work as a $300k deal.

    Renovating residentials was actually more time consuming.

    You're right and if you only focus on the upside it makes complete sense... Kinda like playing $100 hands of blackjack vs. me at the $5 table.

  8. #18
    Join Date
    Apr 2009
    Posts
    942

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    Quote Originally Posted by Don't believe the Hype View Post
    You're right and if you only focus on the upside it makes complete sense... Kinda like playing $100 hands of blackjack vs. me at the $5 table.
    I'm not a gambling man, no matter the value of the real estate I undertake the same vigilant due diligence, the same sourcing of finance, feasibility, costings, risk analysis, lawyers, accountants, tradies, agents, tenants, etc...

  9. #19
    Join Date
    Mar 2010
    Location
    Lower Hutt
    Posts
    386

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    I'm keen to know if you still manage to buy below market value and get an early access clause in this market when its a sellers market?
    Fraser Wilkinson
    www.managemyrental.co.nz
    Wellington / Lower Hutt / Upper Hutt / Porirua

  10. #20
    Join Date
    Apr 2009
    Posts
    942

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    Quote Originally Posted by FJW View Post
    I'm keen to know if you still manage to buy below market value and get an early access clause in this market when its a sellers market?
    Yes. By negotiating and by befriending agents and keeping your eyes and ears open.


 

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