Hi All
I have just settled on my first trade and would like to show you all a rough breakdown of the figures, positives/negatives of the trade and a general overview of how it all went.
First off I would like to thank a few people who helped and pushed me to do this.
These guys in the words of Billy T are "CHOICE".
Dean Letfus, Grant Clifton, Kris Pederson.
Dean Letfus, I remember asking you about this deal, and whether it would be a good buy for the price, your reply was "Well if it was me, I would buy it", thats all you had to say, in my own mind I knew it was but at the time I needed assurance and you provided it, so thanks for all you have done for my investing and your massive action newsletters are the bomb, your advice over the last few months has been invaluable and without your support I dont think I would have done it.
Grant, although I have only known you a while, you have definatley made me think outside the square, and doing the GBI coarse as you suggested will be the best money I have spent, thanks for taking the time to help me with my investing and all the best with yours.
Kris, thanks for the help with the finance, I hit a brick wall with the amount I could borrow and you helped me gain another 95k by being creative with the numbers, without you help there would be no deal, so thanks so much also. I know this may all sound like an acceptance speach at the oscars but I wanted to thank these guys as they gave their valuable time to me for free, so I owe you all dinner at least, so call me if you want to take me up on that offer.
Here are the rough numbers
Purchase Price: 250k
Renovations: 15k
Holding:5K
Trust/lawyers/conveyancy: 5k
Sell Price: $318k
Profit: $37,333
Tax: $12,319 (rough caculations)
Net Profit: $25k
These numbers are a rough estimate at the moment as I will be paying income tax on profit along with gst from sale price in the next month or so, but these numbers are pretty close.
As for the trade, would I do it again? You betcha!!
Would I do the work myself? not in a million years!!
If you decide that a buy/do-up is for you, by all means do it, but you should decide before you sign if you are going to get trades people to do the work or do it yourself, I found out doing this trade that I was not cut out for doing any manual labour(hence my desk job) so if this is not for you, set your numbers to allow for someone else to do the work, as Dean says 10% for a good do up should be minimum and after doing this I realised how true that figure is, as you can see from the numbers I did manage to keep the reno costs down, if I had paid someone else to do the work it would have cost an extra 10k. But saying that what was my time worth, I realise that I would be better off loooking at more deals. These have been good lessons for me.
I managed to sell this property private also which helped with the profit margin, so if you are thinking of selling private, make sure it is at a fair market price, especially if you need to sell in a hurry as holding costs can eat away at your profit in a very small amount of time, this deal had pushed my holding costs to the limit and we were under some real pressure to sell, thankfully I talked to the man upstairs and he helped me out with this.
I hav'nt put any photos on here of the before/after shots as I dont know how, Im sure someone on here will show me how.
I am sure there will be questions to follow so ready when you are.
FH
I have just settled on my first trade and would like to show you all a rough breakdown of the figures, positives/negatives of the trade and a general overview of how it all went.
First off I would like to thank a few people who helped and pushed me to do this.
These guys in the words of Billy T are "CHOICE".
Dean Letfus, Grant Clifton, Kris Pederson.
Dean Letfus, I remember asking you about this deal, and whether it would be a good buy for the price, your reply was "Well if it was me, I would buy it", thats all you had to say, in my own mind I knew it was but at the time I needed assurance and you provided it, so thanks for all you have done for my investing and your massive action newsletters are the bomb, your advice over the last few months has been invaluable and without your support I dont think I would have done it.
Grant, although I have only known you a while, you have definatley made me think outside the square, and doing the GBI coarse as you suggested will be the best money I have spent, thanks for taking the time to help me with my investing and all the best with yours.
Kris, thanks for the help with the finance, I hit a brick wall with the amount I could borrow and you helped me gain another 95k by being creative with the numbers, without you help there would be no deal, so thanks so much also. I know this may all sound like an acceptance speach at the oscars but I wanted to thank these guys as they gave their valuable time to me for free, so I owe you all dinner at least, so call me if you want to take me up on that offer.
Here are the rough numbers
Purchase Price: 250k
Renovations: 15k
Holding:5K
Trust/lawyers/conveyancy: 5k
Sell Price: $318k
Profit: $37,333
Tax: $12,319 (rough caculations)
Net Profit: $25k
These numbers are a rough estimate at the moment as I will be paying income tax on profit along with gst from sale price in the next month or so, but these numbers are pretty close.
As for the trade, would I do it again? You betcha!!
Would I do the work myself? not in a million years!!
If you decide that a buy/do-up is for you, by all means do it, but you should decide before you sign if you are going to get trades people to do the work or do it yourself, I found out doing this trade that I was not cut out for doing any manual labour(hence my desk job) so if this is not for you, set your numbers to allow for someone else to do the work, as Dean says 10% for a good do up should be minimum and after doing this I realised how true that figure is, as you can see from the numbers I did manage to keep the reno costs down, if I had paid someone else to do the work it would have cost an extra 10k. But saying that what was my time worth, I realise that I would be better off loooking at more deals. These have been good lessons for me.
I managed to sell this property private also which helped with the profit margin, so if you are thinking of selling private, make sure it is at a fair market price, especially if you need to sell in a hurry as holding costs can eat away at your profit in a very small amount of time, this deal had pushed my holding costs to the limit and we were under some real pressure to sell, thankfully I talked to the man upstairs and he helped me out with this.
I hav'nt put any photos on here of the before/after shots as I dont know how, Im sure someone on here will show me how.
I am sure there will be questions to follow so ready when you are.
FH
. Cool
but next time I think I too will be paying the people that know what they are doing, for the big jobs anyway
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