just starting out. no lncome but 100k cash.

[big pauly]

Hi all first post.
Ive worked for myself for 20 years in the home improvement industry. Bought and sold 2 homes and made a dumb decision 10 yrs ago to rent and live well instead of invest. Due to medical stuff I havent had an income for 12 months so a loan isnt really an option. Im a carpenter with extensive skills in renovating, basically I can and do, do it all from gyprock, tiling to metal roofing and everything in between. I generally work to a higher standard but basic, if you know what I mean. When I do a reno my goal is to get the house to the standard of your basic project home, I often see renos where the people just paint over 50 years of old paint on skirting edges etc where I would rather just spend the extra couple of hundred dollars and a day or so replacing the skirts.

Im fully aware of building costs but also know how to buy materials very cheap. So I guess im asking how do you work out the finished sale budget so you have a better idea of what should be your initial purchase price. I have no drama working out my reno cost but its my initial and sale price im nervy about.
Also am I dreaming if I think I can do it with 100k and no banks.

Sorry for long post but background is important lol
So im looking into buying dumps and fixing to resell with the view of building wealth. I would be looking at using a portion of profit to pay life bills, which are small and the remainder of profit to continue growing wealth by buying selling increasingly higher value properties.

So ive got 100k cash as my start up and have been looking around at rural towns, wellington in paticular

 

[Commentator]

Put together a crack team of people you would have met in your industry and do it as a business venture? I'm in

 

[strongy1986]

Buy a block of land in a town with housing demand , around 50k

Buy a house for removal from trading post- pay very little or nothing for it

Pay house mover 30-35 k to shift and re stump on new block

Other expenses might be 20k

Check with council on their restrictions first

It's tight but if you do it in the right area you could profit 100k

 

[MRO]

Buy a block of land in a town with housing demand , around 50k

Buy a house for removal from trading post- pay very little or nothing for it

Pay house mover 30-35 k to shift and re stump on new block

Other expenses might be 20k

Check with council on their restrictions first

It's tight but if you do it in the right area you could profit 100k

I like your thinking. Always options if you are prepared to do things a little differently.

 

[Player]

Pauly,

find a money partner and do a Joint Venture. You bring a different skillset to the deal despite your small amount of cash. No doubt you need to find the right match to make it work. Do a little reading on JV agreements. Search the Sub forum Adding Value and Innovative Techniques for Joint Ventures and read and learn.

Here' one I found:

http://somersoft.com/forums/showthread.php?t=61432&highlight=Joint+Ventures

I also like Strongy's idea

 

[big pauly]

Thanks for the responses.

The crack team of trades is pretty easy. Ive done a few full renos and the guys I use are top notch, unfortunately most are just into the work for x and get paid each time. I could put together a Carpenter (me) a roofer, wall, floor tiler, electrician pretty much all but a plumber. I dont seem to get on with plumbers) but I normally just run the pipes and if going through council have them solder them but with the new plastic plumbing systems they are just cut and snap join and providing you have an understanding of how things work you can run it all yourself and if you have a good plumber the will check and sign. I had one but he ripped of a client I recommended him to so no more.
My big thing with using a crack team is Ive learnt from all these guys to the point where I can do their jobs almost to their levels but at a slower rate. In saying that what would take my tiler 2 weeks will take me 3 but im not losing money because I dont have an income so that week isnt a problem. Im thinking as I develop a few I then bring my trades in because my time will be money, once I get past my small budget.

My roofer is a mate and would jump at doing a JV with me, Ive been helping him with his reno, as mates do and he always says why dont we I just let it go. He tends to get attached to places and goes over the top, the sort of guy who gets a Housing com and puts 600x 600 marble tiles in the bathroom and big double french doors at the entry, great roofer but I dont do attachment. Im a fairly dominant sort so if I do a JV I would want a large imput into design etc.

The buy and move thing has been something Ive thought of for asset building but never as a flipping prospect. Interesting.