The deals are out there

[Dean@Massiveaction]

Just to encourage you all out there to keep hunting I thought I'd tell you of todays deal.
Property in Wattle Downs with recent genuine RV of 895K.
Under contract at 750K. Rental income $1250 per week.

I LOVE PROPERTY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
So keep looking. The deals are there

[Oopsick]

Awesome Dean!!! This is defenitely inspiring
Congratulations!

[zensei]

Congratulations Dean!! It's always motivating to hear that the deals are out there!
Are you going to be at Oopsick's birthday drink at the viaduct tonight?

Andre

[FreezingandHot]

Hi Dean

Good stuff. As I am in the market again to purchase
I shall be looking aggressivley to find the deals also.

Maybe not on such a large a scale as your recent purchase.

FH.

[FreezingandHot]

Dean

The IP you are under contract is obviously a multiple income stream. I have been more and more interested in these types of deals for obvious reasons.

My question is, do you look for these types of housing before you look at single dwelling deals.
Most of the houses I am looking at in my neck of the woods mostly are single dwelling or is it that I am not looking hard enough.

I am just about ready to buy my 2nd IP and I want to
buy a multiple income deal.

Have you any advice for me on this, anything in particular I should look out for.

Regards

FH.

PS. What yield did you work out that deal to be,
I calculated it like this $1250 x 52 div by $750,000
= 8.6% yield.

Is this right

[Edinburgh]

Hi Dean

Would be interested to hear more about this deal - how did you find it, why is it below valuation, did you negotiate the price down, can you add value, is it full rented currently or is that a likely rent, and anything else. Thanks

[Dean@Massiveaction]

Hi all. Deal is home and income. rent is realistic. MAy on sell it haven't decided yet.
I find 10 to 20% below valuation by a lot of hard work. I looked at this property 2 months ago. Checked with agent regularly, after 2 months no offers due to poor marketing. Advised the agent I would be willing to make an unconditional offer but it would be low. Vendors were elderly and wealthy and had built the house so it owed them little. I have seen the agent twice since buying and she just keeps shaking her head saying "I can't believe they signed the offer, I would have bought it myself for that" Vendor sold because the wife "liked" me.

1. Watch for slow moving properties, especially in higher priced properties, good strategy for newbie traders. If you can buy below valuation on a higher priced property, adding 10 or 20K and onselling is easy
2. Tell the agent the truth, warn them the offer will be low but clean and you're only offering because the property isn't selling.
3.Be very polite to vendors, take your shoes off even if they tell you not to bother, close doors behihnd you, pat the cat, tell them how lovely the house or rug or painting or view or kitchen is. There must be at least one thing lovely about most properties.
I have purchased many properties at a substantial discount because the vendors "wanted me to have it" Courtesy and respect cost nothing, but can make you a fortune

[tamara]

Hi Dean

Thanks for your detailed response

Tamara

[FreezingandHot]

Nice reply Poomba,

I have just one more question, how do you find out the real RV on the house so that you can purchase 10-20% below market value.

I always find this confusing to find out.

Also does RV abbrv stand for Rateable Value.

FH

[Dean@Massiveaction]

Registered valuation. I always ask if the vendor has had one done. In this case they had. Then I ring my valuer to find out if the valuation is from a company that is likely to have jacked it up. Failing that I use QVonline. They are generally within 10 grand of my valuer.

[FreezingandHot]

Thanks Poomba.

Just what I needed to know. I new there was a way in which this was done but always wondered how.

Now I know.

All the best.

FH.

[FreezingandHot]

I know this is another question, but would It be advisable to use a Valuation company for all the deals
to get a honest account of the value of the property.

Also is there anyone who you could recommend I use in the future?

FH.

[Julian]

Patrick,

It probably would, especially in the early days, but get the property under contract first - that way you aren't spending $4-500 on a valuation for a property that you don't end up buying.

After a while you will get a pretty good idea of the value if you constantly work one area.

Julian

[Dean@Massiveaction]

Julian is quite correct. ever spend more than $50 on a property you don't have under contract. Valuer I HIGHLY recommend is Rene Mclean from R. A Purdy's. Ring their Penrose office to contact him. Specialises in South Auckland, investor himself.

[FreezingandHot]

Thanks for the info.

It can get confusing trying to work out the real value of some properties, especially in different parts of your target area.

So is this how I should go about finding the real value.

1. Ask the vendor for a current RV if they have one.

2. If they have check with my valuer that the price is in line
with other houses in the area.

3. If no RV on property check out QV online.

4. Make an offer 10-20% below RV.

If this is the way to do this can I get advice if this is the best way in which to do this.


Regards

FH.