lock in 3 yrs or 5?

[WebBoard]

To flip or not to flip? This is the question.

Reply: 2.1.2.1.3.2.1.1.1.1.1
From: Robert Forward


G'day Mate

There are bit of your last posting and my last posting in here.


>>The thing with flipping Owen
>>is that the price I negotiate
>>a property to is the price
>>that YOU (the FLIPPEE)
>>purchase the property at.
>
>How do you know 1) that I want that property

Because you want a positively geared property and you don't have any investor snobbery. That I will find out by talking to you about what you want etc...

2) that it's a price I will
>pay. I'm assuming you already have a
>relationship with me and are working on
>my behalf?

It will be that price because you sign the contract of purchase (not me) and you pay the price on that contract. Also we will talk about how much finance you have and will work within that.

>Me being an investor I guess
>you know what I want ie I'm a developer
>or a renovator or a landlord etc.

Yes by talking to you and finding out what you want.


>>This property I am purchasing was
>>going to be flipped, until the
>>flippee pulled out.
>
>This is your $84K property we are
>talking about? Definitely the risk, but
>not really a problem if your not on the
>contract. If not then why are you
>purchasing? Just a good deal?

I am purchasing because my flippee pulled out at the very last minute and it was too good a buy to let it go to waste. So I picked it up myself. Simple really.

>>I am then due, upon settlement, my fee
>>for negotiating the property
>>to that price.
>
>...prearranged with the Flippee?

Yep


>>All I do is find properties
>>and negotiate to an extremely
>>good price. You do your due
>>diligence on the property and
>>purchase it.
>
>So you find the property based on what I
>want, negotiate the price and then I do
>title searches, comps, etc and decide if
>it a good enough deal for me to buy at
>that price.

That is correct.


>>I don't always look for the
>>buyer first, though I have a
>>number of people that I can
>>pass good deals to quickly. I
>>am always looking both
>>properties and people to deal
>>with for flips.
>
>This is the stumbling block for me. If
>you have a property, negotiated a price
>and have no-one to flip it to, what's
>keeping that price in place while you
>find someone?

Nothing, that is why I ended up buying the $84k deal. It had a time limit on it set by the vendor. And why I always need you to be financed up ready to go. So 1) it is a csh settlement 2) it is a quick settlement. Both of which will lead to better negotiations.

>What's stopping you getting gazzumped? You >are relying on your list of flippees being >ready to buy from you.

Yes.

I hope the above clears the, now, dirty water a wee bit.

Cheers
Robert

See this is fun hey...

 

[Owen]

To flip or not to flip? This is the question.

Reply: 2.1.2.1.3.2.1.1.1.1.1.1
From: Owen .


This is good stuff Robert. I'm learning a lot of the real life stuff here and not just principles. Thanks.

I hope you don't mind me asking a few more questions (always with the questions) like how you started things off. Did you place an "I have properties for sale" ad in the paper? Did you negotiate your first few properties first and then try to flip them quickly? Then build on those contacts. It must take a while to make those contacts. Do you have many flippees who will buy multiple properties from you?

I'm guessing that once you get your flippee contact database that you would contact them periodically either with properties you may have found or asking then if they are interested in you finding them one. Otherwise you could negotiating with vendors and having no buyer in place. If so then flipping is quite dependent on increasing your database and finding buyers who will continue to buy from you. "Working on your business and not in it" and all that.

Am I getting the idea now?

 

[WebBoard]

To flip or not to flip? This is the question.

Reply: 2.1.2.1.3.2.1.1.1.1.1.1.1
From: Robert Forward



>I hope you don't mind me
>asking a few more questions
>(always with the questions)
>like how you started things
>off.

It's alright Owen. Ask as many questions as you want cause it also helps others too.

>Did you place an "I have
>properties for sale" ad in the
>paper?

No, and never will.

>Did you negotiate your
>first few properties first and
>then try to flip them quickly?

Yes.

>Then build on those contacts.
>It must take a while to make
>those contacts. Do you have
>many flippees who will buy
>multiple properties from you?

Yes.

>I'm guessing that once you get
>your flippee contact database
>that you would contact them
>periodically either with
>properties you may have found
>or asking then if they are
>interested in you finding them
>one. Otherwise you could
>negotiating with vendors and
>having no buyer in place. If
>so then flipping is quite
>dependent on increasing your
>database and finding buyers
>who will continue to buy from
>you. "Working on your business
>and not in it" and all that.

Your getting the idea now


>Am I getting the idea now?

Yeha...

Cheers
Robert

 

[Owen]

To flip or not to flip? This is the question.

Reply: 2.1.2.1.3.2.1.1.1.1.1.1.1.1
From: Owen .


Did you end up buying many of those first few properties because you couldn't find a flippee? Or did you just let them go? It must be hard for find flippees without a property or a track record first.

 

[WebBoard]

To flip or not to flip? This is the question.

Reply: 2.1.2.1.3.2.1.1.1.1.1.1.1.1.1
From: Michael Croft


Hey Robert,

Great posts and good on ya! In the old forum I asked you what was the dif between you and a Buyers Agent. I must be thick and can't pick much dif. I'd be quite happy to use your services BTW as I know 2/5 of stuff all about the Brissy market. So its a loaded Q. I will be in Brisbane this W/E doing some research and Geoff 1's seminar.

Anyway I plan to go to Gee Cee's lunch in Sydney so perhaps we could catch up then?? Or we can email and go through criteria $$ etc. But if you get caught with a good buy again I'm usually in a position to move quickly.

regards, Michael

 

[WebBoard]

To flip or not to flip? This is the question.

Reply: 2.1.2.1.3.2.1.1.1.1.1.1.1.1.1.1
From: Robert Forward


G'day Michael

Sorry for the delay in replying. I have just returned from a couple of weeks in North QLD getting brown, drunk, and relaxing by the Whitsunday Islands.

I definitely will be at the drinks session with Gee Cee, (though I do remember that Gee Cee said that the next one he organized was gonna be at his place... mmmm..... [hehe])

The difference between what I do and a "Buyers Agent" is that I negotiate properties on bulk but can only take on board a number of properties at a time myself. So I flip the remainder of the properties to others so they get good deals and I get something for my trouble with negotiating.

So, flipping has 2 helping factors for me, I get to negotiate very good prices on all the properties because I'm dealing on bulk. I get to purchase what I want and the ones I can't afford I will organize someone to buy them and receive an amount that will help me buy more properties quicker.

A buyers agent wont negotiate a property like I do because they will then receive less of a commission (so less PAYE cash to live on), so why would they cut off their own nose to spite their face??

Please feel free to email me Michael at [email protected]

Cheers
Robert

 

[WebBoard]

Cashing out at the top of the property cycle.....

Reply: 2.1.2.1.3.2.1.1.1.2
From: Sam Coster


Hi
Have just read your explanation with interest.
I take a Put and Call Option off the plan
ready in 7mnths for
6 units.Ave price $350K each, negotiate 5%
discount$332K, expected Sale price. in 7mnths $378K.
Total offer price $1.992K
Sell 5 units $$1,890K
Last Unit costs us $102K
Which we pay Stamp Duty on and hold, and
raise loan on equity of say $250K.
Please comment if you see a problem, have
disscused with Sol/Acct and seems to be OK.

Samc
Enjoy the journey, its half the fun.