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From: Mike .


Finding a good IP Deal
From: Rick
Date: 10 Oct 2000
Time: 11:56:12

Hey all,

>>I would suggest using this forum as an alternative mentoring facility. Find a deal, do the numbers, present them to the forum for feedback. <<

Can one of you more experienced investors of this fantastic forum please give us beginners some example deals showing us what numbers we need to crunch and other property attributes we need to look out for, so we know the basics on finding a potentially good IP

..thanks Rick
 
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Duncan M

Reply: 1
From: Mike .


Re: Finding a good IP Deal
From: Duncan M
Date: 10 Oct 2000
Time: 12:09:41

I have a large spreadsheet that I use to factor in ALL of the foreseeable cashflows (in and out) from a potential deal including (but not limited to), rent, expenses including rates, management fees, building insurance, landlord insurance, maintenance, Water, interest, strata fees, bank fees, Emergency Services Levy (SA only), Land Tax, income tax. If the investment is cashflow positive and has at least $750 'profit' per annum then it goes on a list of possible purchases.

I then assess the potential capital gain of the property, the attractiveness of the property to tenants, I have my property manager drive past it and give me her assessment of the potential rent and the current demand for the style of accommodation, I look at recent sales in the area, sit in the street for 30mins and get a feel for the area, assess the appearance of surrounding properties, check the nearest shops, bus stop. Check recent "To Let" ads in the paper for that area and accommodation style, review the advertising that has taken place for the property, pump the agent for information on the vendors then if it all still 'feels' right make an offer at something below what I want to pay for it.

The success rate is pretty low :) I'm still learning but there's a few things I personally do. I would also suggest subscribing to Steve McKnights email list, he has a better grip on assessing deals than I do.


Regards, Duncan.

Residential Property Record Keeping Software.

www.otter-software.com.au
 
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Rick

Reply: 1.1
From: Mike .


Re: Finding a good IP Deal
From: Rick
Date: 10 Oct 2000
Time: 13:10:35

Hi Duncan,

Thanks for the answer...I found it most valuable.....its great to have such a fantastic forum for everybody to ask and swap ideas and information on this subject. You said you had a spread sheet you use to calculate cashflows, not knowing myself how to set up a spread sheet is there any chance you could email me copy of yours to check it out? ...my email is directm@one.net.au

Thanks again and prosperous investing to all Rick
 
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FionaH

Reply: 1.1.1
From: Mike .


Re: Finding a good IP Deal - software
From: FionaH
Date: 17 Oct 2000
Time: 14:20:55

Have you thought of trying PIA? Jan Somers software? It is not expensive & I use it to model all prospective IP's.

Fiona
 
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