Buy of a Lifetime Every Week!

[rayss]

From: Ray Summerton


Lots of they in the know suggest this is possible if you work hard to find it. Using the criteria of buying an I/P within 5-6 kms of the CBD of Adelaide, where do i look so i am not in the Queue at open inspections from Saturdays Advertiser or waiting for auctions to happen in three or four weeks with no guide to price? How do i maximise mid week time to give me an edge on weekend buyers?

 

[michaelg]

Reply: 1
From: Michael G


Ray,

I'm starting to see that its the weird stuff that people don't like that has the potential. As for inner city, hmmm what about the old whareshouse?, a garage that could be converted into a studio unit, something above a shop?, a 4beder that can be split into 2 units, or 2 semi's that can mergered into a nice large home? Something that is run down?, does the government have grants for rehabilitation of old places?. Is there something which could be turned into quaint offices?, Is there a large block that could be subdivided?, could you relocate a home somewhere?, is there a battleaxe block that has potential? Is there a run down house which is not lived in that has been missing an owner, are there development blocks for sale?, who's buying them?, would they want to make their first presale with you?

Just a thought.

Michael G.



On 10/10/01 12:46:00 AM, Ray Summerton wrote:
>Lots of they in the know
>suggest this is possible if
>you work hard to find it.
>Using the criteria of buying
>an I/P within 5-6 kms of the
>CBD of Adelaide, where do i
>look so i am not in the Queue
>at open inspections from
>Saturdays Advertiser or
>waiting for auctions to happen
>in three or four weeks with no
>guide to price? How do i
>maximise mid week time to give
>me an edge on weekend buyers?

 

[WebBoard]

Reply: 2
From: The Wife


They are usually "the dont wanter's", most people dont want them, including a lot of investors, they think its yucky, ugly, or to much hard work, or in to 'poor' an area, theres that 'investor snobbery' ( I gotta trade mark that term).

The trick is, not to confuse a "dont wanter" with a "Dog".

You gotta look at a LOT of property to train your eye's to see the difference, when you DO start to see a difference, its like a homing beacon, you can flick thru a realtors listings, and start to pick them, whats attracting your eye, is the tiny flashes of light you see, thats the diamond in the rough.

Everything else is already diamonds, thats why everyone else wants them, but usually all the growth has been already realised on the ones everyone wants your after some 'unrealised' growth, to kick your investing along a little )

Good Luck!

TW
~The eye sees only what the mind is prepared to comprehend~

 

[Sim]

Reply: 2.1
From: Sim' Hampel


And Ray... "Don't Wanters" usually do not go to auction, or they got passed in at auction because nobody came to the party.

Sure, look at auctions, but I suggest that you don't waste too much time there. It's hard to pick a winner when nobody wants to show you the numbers.

Unless you have the ability to pick the selling price of properties at auction to within say, $10K, then I think in general it's not worth wasting your time on them - too many things are out of your control at an auction. It's much quicker and easier to go for the private treaties.

That being said, people can and do pick up bargains at auctions (or in negotiation afterwards) when nobody seems to be interested. But in the 30-60 mins that it takes to auction a place and put up with all of the agent's complete crap they spin before hand, I can go and look at 3, maybe 4 other places and sound the agent out about those deals. Then I ring the other agent who was selling at auction and see whether it got passed in or not and for how much.

Yes, it is more difficult in places like Adelaide where more and more properties are being sold at auction (like Melbourne). But once clearance rates drop back to their normal levels, I think we will see fewer properties being sold this way.

 

[WebBoard]

Reply: 2.1.1
From: The Wife


EVERYWHERE was at auction two weeks ago, Brisbane, a traditionally non auction place, was rife with auctions two weeks ago.

Clearance rates have changed over the last couple of weeks, lets wait and see if it changes some more, might mean the markets come of the boil, and things are becoming a little bit negotiable again?

TW
~We can't all be heroes because someone has to sit on the curb and clap as they go by~

 

[WebBoard]

Reply: 2.1.1.1
From: Paul Hendriks


Serious Investors

I'm starting to see a pattern emerge on what to look for in IP's, just by reading your posts.

It seems you mostly look for (as mentioned in this thread) something most Ma & Pa investors don't want.

I had a RE agent show me 3 IP's last week(that were ready to rent)Nothing to do, nothing to improve, just rent out & wait for growth.

I hope to secure that diamond eye your talking about TW, sooner rather than later.

It took me 5yrs to master spotting fish from 1km away, whilst out guiding people, I hope it won't take me that long with IP's.

Paul

(Learn all you can, but take your own advice)

 

[Michael Croft]

Reply: 2.1.1.1.1
From: Michael Croft


Hi Paul,

Here's an easy one to spot.

Three/four bedroom home with double garage and small/pokey living areas. Convert double garage to rumpus/family room (add internal access door and steps)and add a double carport.

Cost of "improvements" $5,000, added $30 per week to rent, added $35K to valuation and added appeal to renters up 100%.

This was a classic 'nobody want's it' type property - orange/red swirl carpet and lime green laminex kitchen. It's now showing just over over 9% return in a good growth area and I haven't done the reno yet!

TW is absolutely right, it's just a case of looking with eyes that see - even in this market.

regards, Michael Croft

 

[WebBoard]

Reply: 2.1.1.1.2
From: The Wife


eerrm...I just noticed the fly fishing in your email, so...me and about 6 other regs here, we luuuuuuuuuuuurv the fishing, live for the fishing, droool, for the fishing....are you a business? do you have a web site?

TW
~Life is a daring adventure, or nothing at all~

 

[rayss]

Reply: 2.1.1.1.2.1
From: Ray Summerton


Thanks Guys and Gals, this gives me some ideas.More specifically, do I approach all R/E Agents in the area or look for catalogues or search the net? Is the best bet 2br or 3br townhouses or units, or villas or 3br or 4br houses for a balanced portfolio? Is it better to go for 2 $120k I/Ps giving 7+% return or one 240K house. Sim', how do you find out about the private treaties you mention?
PS I am inspired by the quotes at the end of the posts, keep 'em up Regards Ray

 

[Sim]

Reply: 2.1.1.1.2.1.1
From: Sim' Hampel


Ray: the answer is YES.

 

[Sim]

Reply: 2.1.1.1.2.1.1.1
From: Sim' Hampel


Okay... I'll expand a little...

>More specifically, do I approach all R/E
>Agents in the area or look for catalogues
>or search the net?

All of the above if you want to find good deals.

>Is the best bet 2br or 3br townhouses or
>units, or villas or 3br or 4br houses for
>a balanced portfolio?

You decide.

>Is it better to go for 2 $120k I/Ps giving
>7+% return or one 240K house.

Depends. Generally, the advice is to spread the risk around with two cheaper properties (that are more affordable to tenants and future buyers). Of course, this depends on your circumstance and strategy.

>Sim', how do you find out about the private
>treaties you mention?

I search the 'net, gather brochures, read the Sat advertiser (my local newsagent gets it in for me each week here in Sydney), and talk to agents and go to open inspections when I am in Adelaide. Oh, I also have a network of friends who sometimes come across properties that they think I might be interested in.

>PS I am inspired by the quotes at the end
> of the posts, keep 'em up Regards Ray

Okay... "Help stamp out and eradicate superfluous redundancy" ;-)

Ray, it sounds as though you are suffering a little from "analysis paralysis"... all these questions you ask are generally answered by a big "IT DEPENDS"... you need to choose your own strategy.

Talk to others (preferably the successful people), find out how they do it, you'll find that the "freestylers" like TW do it all. But work out what appeals to you, and try it !

Just remember that just because it worked for someone else in their location, in their situation, with their experience, at the time they did it, doesn't mean it will work for you.

And if all else fails, just go back and re-read Jan Somers' books... and just follow the instructions !

 

[WebBoard]

Reply: 2.1.1.1.2.1.1.1.1
From: The Wife


Yeah Ray, What Sim said. )

He took the words right out of my mouth.

But dont let Sims answers stop you from asking even more questions here. We LOVE the questions, in case you havent noticed.

TW
~Money doesn't always bring happiness. People with ten million dollars are no happier than people with nine million dollars~

 

[WebBoard]

Reply: 2.1.1.1.2.1.1.1.1.1
From: Dave


yeah, true...and,

"People with no slogans after their posts are no better than people with
encyclopedias after their posts"

*massive grin*

Luv ya's all.

Dave