Quick Cash Deal

[orion]

Hi, thought I'd pass on the info about a quick cash deal that I've just done.

The property was in Hawkes Bay, bought privately for $80,000 2 months ago (unconditional date) with prior access before settlement to do some repairs etc. Property settled a week ago on the 16th April. In the mean time, I had the floors polished and some interior painting done and a bit of a tidy up - total repairs & maintenance was about $1500.
Yesterday it sold for $122,000 - minus agents fees of approx $6000 = $116,000 net price.
Total profit before tax, legal fees etc is approx $34,500.

Regards
Graeme Fowler

[drelly]

Very nice Graeme! Was that sourced from your advertising?

[orion]

Hi Dave, yes it was from advertising privately.

Regards
Graeme Fowler

[drelly]

So what made him sell so cheap?

[muppet]

Hi Dave

Probably one of the six Ds - death, divorce, d'banks, debt and two others I can't remember.

Regards

[cube]

Well done, Graeme!

Proves that it can still be done, even in the 'up' times.

cube

[Gerrard]

Hi Graeme - congrats on the great result. It's great to have the reminder of what can still be achieved in today's market.

I've been scouting the streets for opportunities lately and have even written to a few people offering to buy their house. To date there have been no bites but it's only a matter of time...

Gerrard

[orion]

Hi Dave,

He was heading away to Auckland the following day and wanted the property sold unconditionally within one day, so I was there at the right time fortunately (for me). Tenants had recently moved out and done a small amount of damage, but nothing major.

Each time, there seems to be a diffeent reason for people selling like this, there was one last year I bought for what was owing on the mortgage + the vendors' legal fees which totalled about $29,000. Their lawyer said they should try to get a lot more for it, but it was a separation and neither of them wanted the other to come out of the deal with any money. I spent $6,000 on it and sold it a few weeks later for $80,000.
By buying privately, you should always at least be able to buy at a discount of the equivalent agents' fees that they would pay. By negotiating well, you can usually save a lot more.

I signed up to buy another one today privately with the vendor leaving in $20,000 at no interest over 5 years. I paid more because of this, as we couldn't come to an agreement on price, but the time value, or equity of the $20,000 is about equivalent of paying $5,000 less for it. Also means that I put in a very small amount into the deal - Purchase price is $120,000, bank lends 80% which is $96,000, vendor leaves in $20,000, so only needs $4,000 plus legal fees to purchase.

Regards
Graeme Fowler

[orion]

To date there have been no bites but it's only a matter of time...

Hi Gerrard, that's right - persistence is the key to it.

Regards
Graeme Fowler

[wada]

Hi,

Orion I've just read your post and I can't help but be impressed. I've just started to look seriously in the Hawkes Bay market but thought I had missed the gravy boat due to the rocketing prices. However, you've shown us the great deals are still out there. Recently, I've just noticed big green signs with 'I buy houses' in Wanganui, Ashurst and Dannevirke... are these your signs? If so what and effective yet simple form of advertising. I'm now very keen to buy our next IP privately regardless of it's location.

Wada

[drelly]

And do you know who is advertising the same way up here in Whangarei? There are "WE BUY HOUSES" adverts in the local papers... someone you're mentoring?

[Gatekeeper]

They are all over the Hutt Valley too.
What are these people doing?

[orion]

I've just started to look seriously in the Hawkes Bay market but thought I had missed the gravy boat due to the rocketing prices.

Hi Wade, yes unfortunately that was the last one.

Recently, I've just noticed big green signs with 'I buy houses' in Wanganui, Ashurst and Dannevirke... are these your signs?

No, those ones are a friend of mine I think if he still has them there, a Palmerston North phone number. I have a few yellow ones in Hastings that are similar.

If so what and effective yet simple form of advertising. I'm now very keen to buy our next IP privately regardless of it's location.

Wade, the only problem with buying anywhere is that you are likely to pay way too much, until you get to know the market well enough not to be sucked into believing peoples' stories and opinions on price. What I mean is you need to know prices well enough to tell when people are telling you the truth and when they are not. It does take some time to learn an area and the more locations you are looking at buying in, the riskier it is in getting it wrong.

Regards
Graeme Fowler

[orion]

And do you know who is advertising the same way up here in Whangarei? There are "WE BUY HOUSES" adverts in the local papers... someone you're mentoring?

Hi Dave, not sure on that one.

Regards
Graeme

[orion]

They are all over the Hutt Valley too.

Hi Gatekeeper, yes, some more friends in Wellington / Hutt Valley are doing it there too.

What are these people doing?

It's supposed to be an international secret, but seem it's you, I'll tell you - they're actually wanting to buy houses.

Regards
Graeme Fowler