how to renovate prior to settlement with no dosh?

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From: Funky Whuff


Hi all,
Just wondering, have seen a few people suggest buying a property and doing it up (renovating) before settlement and then revaluing and getting 100% finance that way - where do you get the money to renovate the property prior to settlement? Are you supposed to build up a cash pile, or borrow the money, or is there some other way.... thanks for all your help and guidance,
Liz
 
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Reply: 1
From: Anonymous


How do you get access to an existing property before settlement if it is owner occupied or tenanted anyway? I believe you are not the legal owner until settlement. What if the vendor for whatever reason changes their mind about selling? Would you then have to sue to get your deposit, and expenses and time etc.
If there is a way, please excuse my ignorance, as this is an option I would seriously consider.
Maria
[email protected]
 
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Reply: 1.1
From: Michael Yardney


Maria
You are correct. It is unlikely the vendor would allow you access and it would be unwise to add value until you actually own the property.
Michael Yardney
Metropole Properties
 
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Reply: 1.1.1
From: Sergey Golovin


Yep,
It is good one.

If it is your 2nd or 3rd home or it is your IP you probably can arrange some sort of loan.

But it gets tricky, especially if it is your first home.

The risen people are buying old houses (specially first once) is to buy cheaper, so you need lesser deposit. But to renovate it you need more money and you have to borrow more, while you still have no equities in it. They might give you the money or might not. Depends on your income, disposable cash and equities I guess.

Serge G.
 
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Reply: 1.1.2
From: Gee Cee Cee


Hi Michael

What say we all give up property investing and make some REAL $$$.

We can give seminars.


Gee Cee
 
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Reply: 1.1.2.1
From: Steve G


Hey Gee Cee - I can see it now! You, MC, Rolf, TW and a couple of others on an all capitals hang-the-expense major seminar tour!

Now, for a small management fee..... ;-)

Steve G
 
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Reply: 1.1.2.1.1
From: Ric1 .


Didn't Geoff1 give up doing seminars so he make some REAL $$$ - doing property investment??!!

Ric
 
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Reply: 1.1.2.1.1.1
From: Apprentice Millionaire


>Nope, he's given/giving up his home grown seminars for the full on professional thing and
>real dollars.
>
>Be under no illusions, seminars and property are businesses, both must run at a
>profit.

The interesting thing I picked up from Geoff1 when he was last in Melbourne for his free introduction seminar, was that he needed seminars to show his lenders that he was not rent reliant. When you do well in property, then you move into seminars to keep the lenders happy with an income other than rent. Is that the way to go?

Cheers
Apprentice Millionaire
(aka Jacques)
 
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Reply: 1.1.2.1.1.1.1
From: Steve G


Hi AM, Michael!

Not only that, but I think its important that you actually LIKE doing seminars, and want to help people. Otherwise, the message will only be half hearted, and its really "just another job" to keep the wheels of capitalism turning. Not good for the presenter or the students!

To put it another way, you've not only got to be passionate about the topic, but passionate about presenting (and why you do it) too.

Steve G
 
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Reply: 1.1.2.1.1.1.2
From: Ioan Macgregor


>The best example of this is
>the Somers and their tireless
>and free devotion to the cause
>of IP's.


I do recall seeing Jan prostitute herself at various 2nd tier marketing seminars.. Lets not get carried away with her altruism at this point

Ioan
 
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Reply: 1.1.2.1.1.1.1.1
From: Apprentice Millionaire


Hi Michael, Steve,

I should have added to my post that what Geoff said about his seminars keeping the lenders happy did not deter in any way from his enthusiasm to teach what he has learned. I thoroughly enjoyed his seminar!

Cheers
Apprentice Millionaire
(aka Jacques)
 
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Reality Check

Reply: 1.1.2.1.1.1.2.1
From: James Doherty


Just a note regarding the original post. one of our properties we were able to secure a clause to allow us some renovations as the property was empty and in dire. MAKE SURE you have insurance to cover the property and make sure it has a public liability until settlement. YOU may not be the only person in the property, you may know that the electrician left some live wires in the hallway but do the vendors.
Regards,
JamesD
 
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