New deal for the naysayers.... Chester Hill Sydney

[Rockstar]

Great work Nathan.
You are an inspiring reminder to all those who are wavering because of the D&G. Opportunity to create wealth exists in every market. While most are fortifying themselves against potential destruction you are out there proactively creating and working toward your goal.

 

[evand]

Naysayers...nayasayers.....no wealth has been created as yet and Nathan isnt wealthy. Most of the so called "naysayers" on here already have the runs on the board, been investing for more than half an hour and are reasonably wealthy.

Big difference between gonna be wealthy and already there. Lets see how this stuff pans out long term.

Dont take this as p!$$!ng on someones parade, lets just keep thing in perspective as a lot of people on here are getting way ahead of themselves.

Especially newbies.

Opportunity to create wealth exists in every market.

 

[Rockstar]

Each to their own Evan. We know how you feel and that's ok. All I am trying to say is that there are opportunities out there for those who look. Nathan has provided a real example of an "add value" deal which stacks up very well. He has manufactured a 12% return if rented (backed up by Tiger who lives in the area) and a profit of over 30% if sold at his expected price in the current market. Wouldn't you purchase the property if you had done DD and the figures were such as his? Maybe you have a different investment strategy?

How can you come across opportunity if you have the attitude of "lets wait and see what happens". Do you really believe that there is no point looking in the present market?

I am not advocating jumping in without DD and never would. I just think there are times when overcaution can stifle a person into inaction and procrastination.

 

[want2bewealthy]

Exactly.

Opportunity knocks, but it won't come in unless you open the door.

Each to their own Evan. We know how you feel and that's ok. All I am trying to say is that there are opportunities out there for those who look. Nathan has provided a real example of an "add value" deal which stacks up very well. He has manufactured a 12% return if rented (backed up by Tiger who lives in the area) and a profit of over 30% if sold at his expected price in the current market. Wouldn't you purchase the property if you had done DD and the figures were such as his? Maybe you have a different investment strategy?

How can you come across opportunity if you have the attitude of "lets wait and see what happens". Do you really believe that there is no point looking in the present market?

I am not advocating jumping in without DD and never would. I just think there are times when overcaution can stifle a person into inaction and procrastination.

 

[steveadl]

Coming from different perspectives Evan. You have to start somewhere, so why not start now when you've found a good niche? Who's to say waiting a couple years to buy what people consider 'better' properties in better suburbs will be a better move?

If Nathan was as wealthy as you are now, he would probably be in conservation mode as well. He may pick a dud or two now amongst the bunch, but he'll still do much better than someone who's going to 'wait and see' until we come out the other side of the GFC.

 

[yadreamin]

You sure are doing some good deals Nathan.
Well done to you.
cheers
yadreamin

 

[Jacque]

Sorry guy, I know some SS members were with me @ the auction to confirm but i respect their discression.

The property is a duplex if you dont belive my numbers, check RpData sales advice should be updated on there at the moment.

And in 8-10 weeks time there will be a further sales advice with the onsale if we decide that path..

The property was just well bought. its aroun 15 years old, has been trashed but $20k reno each + 10k for termite repairs.

Just need to be well prepared, and know your stuff. I get RpData live streamed to me during telephone @ auction to ensure these deals dont get out of our control.

Sorry typo should be 462k fingers musta been slipping with enthusiasm.

Hey that's cool Nathan

Thanks for explaining further- would like to follow the story to see if you make the anticipated profit. You're right, however, in that FHB's would be scared off by termites and major reno but great news that you can hopefully make it work. Kudos to you and keep us posted!

 

[Nathan]

Thanks guys, just update...

This purchase was not for me, but we bought it.

The tradies are on it already and whom i bought it for does these deals every day of the week. the max spend would be 50k.

resale im consrevative on that too...

It has plenty of upside.... got some more cheap ones yesterday

Missed out on one today but we had a limit and it went past it.

Just goes to show how any market money can be made. it takes hell of a lot more sweat to get good deals at present.

got meeting on monday with developer for around 200 brand new units trying to negotiate the whole lot for people.

 

[Collector]

Thanks guys, just update...

This purchase was not for me, but we bought it.

The tradies are on it already and whom i bought it for does these deals every day of the week. the max spend would be 50k.

resale im consrevative on that too...

It has plenty of upside.... got some more cheap ones yesterday

Missed out on one today but we had a limit and it went past it.

Just goes to show how any market money can be made. it takes hell of a lot more sweat to get good deals at present.

got meeting on monday with developer for around 200 brand new units trying to negotiate the whole lot for people.

Hi Nathan,

Are these property sold at a special auction - not open to public, are the properties housing commission surplus or similar?

Or are these properties open to everone - being advertised locally and on re.com?

 

[Nathan]

They are properties advertised in same mediums as all other listings...

However with relationships with agents i tend to get private treaty listings (normal for sale) properties before they hit the market...

 

[evand]

All i'm saying is that no wealth has been created yet. People should stop patting themselves on the back until things are proven and profiable.

The place could be a termite right off, Non recourse's predictions could be right (or even half right). If you've been investing for a while you realise theres a thousand things that can derail wealth plans. And you should save the champers for when the results are there.

I know the Chester Hil area well and its dodgy as.

I've seen a million "gonna happens" in my life and been around long enough to pay it no credence until i see "these are my results" and that of course takes time.

I've also seen more than enough $50k pa guys in expensive suits to last me a lifetime. Remember and old jewish saying 'pride before the fall'

Good luck to Nathan, i hope he succeeds but lets keep it in the realms of reality please. I dont think he's seen a property down cycle as yet. At least.

Maybe put the cork back in the champagne until early/mid 2010. By then people will know whether to pop it or not. With the way things are panning out (especially the lower market sector) my hunch is the cork will stay in the bottle.

Each to their own Evan. We know how you feel and that's ok. All I am trying to say is that there are opportunities out there for those who look. Nathan has provided a real example of an "add value" deal which stacks up very well. He has manufactured a 12% return if rented (backed up by Tiger who lives in the area) and a profit of over 30% if sold at his expected price in the current market. Wouldn't you purchase the property if you had done DD and the figures were such as his? Maybe you have a different investment strategy?

How can you come across opportunity if you have the attitude of "lets wait and see what happens". Do you really believe that there is no point looking in the present market?

I am not advocating jumping in without DD and never would. I just think there are times when overcaution can stifle a person into inaction and procrastination.

 

[dash11]

Hi Evand

Rather than shoot Nathan down with "I've seen a million this and a million that", how about just a simple good luck and look forward to the results and final figures. I'm fairly sure the people he purchased for have done their research and costings and are more than confident with a positive result. Maybe the people he secured the property for are an exclusion to the 50k pa "suits" you refer to. Maybe the same people have been around for a while and have seen the ups and downs of property. Maybe the same people have handled plenty of termite damaged property. Maybe the same people havn't let the cork out of the bottle yet but they know when they have bought a good property.
My point is, you seem to be throwing alot of assumptions around rather than fact.
At least he is in the game and not on the sidelines which I would have thought gives him and the people he represents a better chance than those that are not.

Regards.

 

[Rockstar]

I know the Chester Hil area well and its dodgy as.

Fair enough I don't know the area. What do you mean by "dodgy as"? Are you referring to the people who live there? There are dodgy folk here and there throughout all suburbs and communities. The vast majority are reasonable tenants.

Good luck to Nathan, i hope he succeeds but lets keep it in the realms of reality please.

Well the reality is in the figures. If the figures are genuine then the returns make the project more than feasible in my books.

I dont think he's seen a property down cycle as yet. At least.

I thought Sydney has been in a down cycle since 2004ish? Particularly in the west.

 

[tigerGT]

I know the Chester Hil area well and its dodgy as.

.

I grew up in Chester Hill. I don't think its the best suburb in sydney but I dont think its dodgy. And even if it was dodgy does that mean that no one should buy property here because dodgy property doesn't appreciate?

 

[keithj]

Sorry for being enthusiastic about this however i think these numbers are pretty cool! If i have hit any nerves please let me know and il stop posting these updates.

Congrats Nathan......

It sounds like the deal is not without risk. Can you tell us the DD you did espec regarding termites ? And when you complete the deal let us know the final numbers & reno photos & also anything unexpected you encountered.

Creating $170K of equity in 10 weeks would be a major achievement. It's good to see there are deals out there for those who can see past the D&Gers who have nothing more than hunches.

 

[Nathan]

Thanks to everyones feedback.

Keith will do The duedilligance was knowing the numbers and understanding potential upside/downside. And those whom this is for are running about 10 similar projects a week therefore this is an easy one. Its not burnt, the walls are eaten, however they are not in trusses etc.

This is an easy task for the tradies to do and they will be commencing operations from monday, so 4 weeks reno is suffice to be totally transformed, upon settlement it will be back on the market.

If evan did his own research he would see where the market is at in chesterhill and realise he is making himself look silly with his flippant remarks.

Thanks Dash, Your right as stated above they are not Suits and are pro's in this area.

Tiger correct, area isnt dodgy there are better areas in australia for sure, and the backgrounds of nationality vary, with some not so attractive reno attemts, but the part of town this one is in is in a new estate where there are million dollar homes around this....

I will keep posted

 

[sash]

Evand,

I don't see suburbs as dodgy or not dodgy...what is important that the deal works.

Whilst, Nathan may have some risks.....he probably understands them hand probably has an exit strategy.

Even if the termite problem is worse than expected and say he only made 60k profit....still not bad for a few months work!

Two sides to a coin.

Evand, I notice that you tend to stereotype areas.....in my view this is limiting factor...particularly when it comes to investments. If you buy cheap enough...in my experience you can make money.

Can you elaborate where you hold???

All i'm saying is that no wealth has been created yet. People should stop patting themselves on the back until things are proven and profiable.

The place could be a termite right off, Non recourse's predictions could be right (or even half right). If you've been investing for a while you realise theres a thousand things that can derail wealth plans. And you should save the champers for when the results are there.

I know the Chester Hil area well and its dodgy as.

(especially the lower market sector) my hunch is the cork will stay in the bot

 

[Nathan]

Oh yeah sash good points, also 1 last point for Evan....

People here know the purchasers of this one along with all their other projects.... They dont buy a little scummy house here or there... they are active, purchasing daily... the company who is the client on this one has now turned over $3mill since januaray 2009 in similar deals.

Its interesting how opinions limit ones success.

 

[sparky23]

Well done Nathan take no notice of the negativity, wish I could be a part of it all sounds very exciting!

 

[Collector]

Thanks to everyones feedback.

Keith will do The duedilligance was knowing the numbers and understanding potential upside/downside. And those whom this is for are running about 10 similar projects a week therefore this is an easy one. Its not burnt, the walls are eaten, however they are not in trusses etc.

This is an easy task for the tradies to do and they will be commencing operations from monday, so 4 weeks reno is suffice to be totally transformed, upon settlement it will be back on the market.

If evan did his own research he would see where the market is at in chesterhill and realise he is making himself look silly with his flippant remarks.

Thanks Dash, Your right as stated above they are not Suits and are pro's in this area.

Tiger correct, area isnt dodgy there are better areas in australia for sure, and the backgrounds of nationality vary, with some not so attractive reno attemts, but the part of town this one is in is in a new estate where there are million dollar homes around this....

I will keep posted

I feel that your timing for this project is perfect.


The renovation/repair will be completed in time to take full advantage of the deadline of the FHOB grant, if all goes to plan I can see this project making the risk takers alot of $$$.


Well done Nathan