Im not sure how many of you read an article recently about a group of people in melbourne who sold their grouped properties to a devloper and killed the pig?
I believe they all lived adjacent and was in an area which had gone through a recent zoning / policy change, they got together and said they would sell their propertys as a package to a developer and they ended up walking away with a huge profit.. i think it was like 15-20%+ more than market value.
Using this strategy, do you think it would work to activly go out there and find properties where people would sell for say x% above market value assuming you could group mulitple blocks and sell as a high density devie, and for doing this you take a decent cut.
I'm always thinking of business ideas, the way i see this idea is you dont really have to front up too much money for a return... your simply a middle man doing the deal, and taking esentially the RE cut plus more.
I think the 3 biggest hurdles of this idea are;
- How would you entice the people to sell, what are they getting to commit into the deal other than the above market vals..
- what format would you use, eg options / contract to buy w/ clauses..
- and the most important one - having a buyer (i'm thinking market it to asian websites / investors)
Pros of this idea-
-dont need track record (history)
-dont need much capital costs - they would only come once you enter the deal (lawyers etc)
-you can work at your own leasuire
-while doing this, you can assess the deals your looking at and possibly find devies for yourself
- increase negotiating skills
Would love any feedback!
I believe they all lived adjacent and was in an area which had gone through a recent zoning / policy change, they got together and said they would sell their propertys as a package to a developer and they ended up walking away with a huge profit.. i think it was like 15-20%+ more than market value.
Using this strategy, do you think it would work to activly go out there and find properties where people would sell for say x% above market value assuming you could group mulitple blocks and sell as a high density devie, and for doing this you take a decent cut.
I'm always thinking of business ideas, the way i see this idea is you dont really have to front up too much money for a return... your simply a middle man doing the deal, and taking esentially the RE cut plus more.
I think the 3 biggest hurdles of this idea are;
- How would you entice the people to sell, what are they getting to commit into the deal other than the above market vals..
- what format would you use, eg options / contract to buy w/ clauses..
- and the most important one - having a buyer (i'm thinking market it to asian websites / investors)
Pros of this idea-
-dont need track record (history)
-dont need much capital costs - they would only come once you enter the deal (lawyers etc)
-you can work at your own leasuire
-while doing this, you can assess the deals your looking at and possibly find devies for yourself
- increase negotiating skills
Would love any feedback!