Getting Started

Pierre

Reply: 2.1.1.1.1.1.1.1
From: Mike .


Take the first step - make the mistakes ..... and learn
From: Pierre
Date: 15 Feb 2001
Time: 06:55:37

Jacques,

Sometimes you just have to bite the bullet and jump in. Rather than spending lots of time wondering if a buyer's agent or some other person can find you a good deal, you really have to be able to learn how to do it yourself. I guarantee you will make some mistakes along the way, but if you have a good plan and stick to it, you can minimise the effect (and cost) of those mistakes. You can be 100% certain that every person on this forum who has bought properties has made a mistake or two along the way. The secret is to learn from the mistakes and not make them again.

You will ultimately be better off if you work hard at this yourself. You may think that the answer to your plight is to convince The Wife to take you on board to show you how it is done. Well, in many respects, you may well learn a lot, but her style is going to be so much different to your style (at the moment). You seem to have much enthusiasm and desire to succeed. Turn some of that enthusiasm into action, and as the good people at Nike say ..."Just do it!"

Pierre
 
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Crystal

Reply: 2.1.1.1.1.1.1.1.1
From: Mike .


Re: HOW IFFY ARE THESE PEOPLE
From: Crystal
Date: 13 Feb 2001
Time: 23:52:19

Hi Jacques,

I wish you would realise that you do have a mentor. This Forum!!! You may ask as many questions as you like, at any time and usually more than one experienced investor will answer them for you.

I purchased my first IP in June 2000, I had no experience and no mentor. If I had a question about anything from making an offer to insurance to building and pest inspections, I came to the forum. All my questions were promptly answered by more experienced investors and I learnt heaps. Jacques, I believe that the confidence and knowledge you will gain by purchasing your first IP by yourself will far outweigh any supposed benefit of a Buyers Agent.

Good Luck, Crystal
 
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Robert

Reply: 3
From: Mike .


Then Talk To Person That Flips Property
From: Robert
Remote Name: 198.142.108.189
Date: 12 Feb 2001
Time: 22:32:37

Hi Guy's

This debate has been raging on here about a Buyers Agent. But here is a different thought, how about taking an investment property from a flipper. Someone like myself or "The Wife" that will find the property negotiate the deal hand you the contract all for a consulting fee.

Unlike most Buyer Agents, a property "flipper" won't pass on a deal that won't be positively geared. A recent trip to Brisbane last week netted myself 2 properties to flip (of which are already under contract) plus 2 properties for myself to do some innovative things with.

Of these 2 properties which are being flipped they are in good areas that will have good capital growth of at least 10%pa and cash in the pocket at the end of every week. They are also being purchased at around 70% of FMV. Now this is what is called Wholesale....

A flipper would not pass on a property unless it was positively geared and a good deal. This for 2 reasons, the first being so you get a good deal and get wealthy, and secondly so you come back to the flipper for your next property and the flipper gets wealthy. It is a 2 way cycle.

Anyway I've rambled on enough here. Email me if you want at [email protected]

Cheers, Robert
 
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Sim

Reply: 3.1
From: Mike .


Re: Then Talk To Person That Flips Property
From: Sim'
Date: 12 Feb 2001
Time: 23:03:57

Hang on... so what are you buying them at and then what are you selling them at?

Was the 70% of FMV your buy price or your sell price?

If sell price, where do you make the money in the flip (ie. what is your buy price)?

If buy price, what is the sell price? 100% of FMV? And still cash-flow-positive?

Sim'
 
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Robert

Reply: 3.1.1
From: Mike .


Re: Then Talk To A Person That Flips Property
From: Robert
Date: 13 Feb 2001
Time: 10:16:54

Hi Sim

The price I negotiate to is the purchase price that you will buy at. I receive a "consulting fee" from you. The property never goes into my name so I can't up the purchase price. You purchase from the vendor, I find the property and negotiate the price and let you know that I have a property ready for purchase.

So, if i negotiate to 60% of FMV then you buy at this price, if I negotiate to 80% of FMV and it is positively geared you buy at this price etc etc. As long as the property is positively geared I will flip it.

If you have any other questions please feel free to ask...

Cheers, Robert

[email protected]
 
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Andrew

Reply: 3.1.1.1
From: Mike .


Re: Then Talk To A Person That Flips Property
From: Andrew
Date: 13 Feb 2001
Time: 11:04:32

Hi Robert,

How is the consulting fee worked out, eg % of purchase or fixed amount? Also, what types of property do you find - houses, units ?

Thanks, Andrew
 
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Robert

Reply: 3.1.1.1.1
From: Mike .


Re: Then Talk To A Person That Flips Property
From: Robert
Date: 13 Feb 2001
Time: 12:36:51

G'day Andrew

The consulting fee is worked out on each property. It really comes down to the purchase cost of the property and how positively geared it is.

I won't post exact amounts that the fees are because it really depends on each property. If the property is in a lower end of the market then the fee won't be as much as if it was in the higher end of the market.

Cheers, Robert
 
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Michael Croft

Reply: 3.1.1.1.1.1
From: Mike .


Re: Then Talk To A Person That Flips Property
From: Michael Croft
Date: 13 Feb 2001
Time: 15:24:12

Hi Robert,

I think you are redefining the word 'flipper'. The way you describe it you are a buyers agent. Yes I know you found a property before the client but that is a chicken and egg argument. If you have no legal interest in the property anybody can buy it from under you. Michael
 
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The Wife

Reply: 3.1.1.1.1.1.1
From: Mike .


Re: Then Talk To A Person That Flips Property
From: TW
Date: 13 Feb 2001
Time: 19:13:33

No Michael,

People are thinking of flipper wrong.

People can still take a property out from under you by gazumping, but the consulting fee is paid on completion of the contract of sale.

So if you don't buy it, you don't pay.
 
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