New Property Concept

Hi peoples,

Im new to the forum

Just letting you know, Im bringing a new concept into the property industry.

We pay for your property renovation. Every cent.
No longer do you have to worry about borrowing money from a bank and paying back at interest, thus going into more debt.
No longer do you have to worry about the renovation company doing a poor job.
Our goal is to push the value of your property as high as possible.
Who benefits from the increased profit margin? YOU. The Vendor.


Risk Free
It can be a scary thing for a Vendor to outlay large sums of money to do a renovation.
We eliminate all the risks involved for the Vendor.
Yes, you are reading correctly. We are on YOUR side.
We are the ones taking the calculated risk, utilising current market data to maximise your property value.

We assess the budget for our trusted renovation companies. They then renovate your property to their best capabilities, in an attempt to provide a luxury quality finish, thus greatly increasing the value of your property.

Can the vendor lose? No. You cant lose.
Its not your money we are spending. Its our money we are spending.

What happens if your property doesnt increase in value after the renovation?
Thats our problem, not yours. It becomes our loss. You as the vendor still get the returns of the original value of your home.
If we dont increase its value, its our loss.

Why do we NEED your property to increase in value?
Simple. Its our money we are risking, thats why its in our best interest to make sure an amazing renovation job is done on your property. We not only want your property to increase in value, we NEED it to increase in value. Its our money we are risking, not yours.

Why is it in the best interest of the renovation company to do a great job?
Simple. We have built associations with the finest renovation companies in Australia. The more profit they help create for you, the more jobs they obtain in the future. So its in the renovation companies best interest to greatly increase the value of your property.

How much of the profit does the vendor get to keep?
The vendor gets to keep 80% profit that we increased in the value of your property.
For example, if we increase the value of your property into $100,000 profit, you as the vendor have made an $80,000 profit. 80% of the profit margin. And you didnt outlay or risk one cent to achieve this.
The higher we increase the value of your property, the better for you, the better for us, the better for the renovation company. Its a win/win/win.
Every party involved benefits from your property greatly increasing in price. This is why its in our best interest to make sure everything goes well, because its our risk, not the Vendors.

Origin of concept,,,,
To provide a solution to a common problem. Every vendor deserves the right to increase the value of their property. Whether you have been residing in your property, as "home", or as an investment property.
Unfortunately most property owners arent in a position to borrow more money from banks and various other financial institutions.
We solves this problem.
In essence you get a free shot to increase the value of your property. In the worse case scenario that we havent sent your property into profit, you are not required to pay us anything at all. We do not entitle ourselves to 20% of the profit margin, in the event of us not turning your property into profit. You still get to obtain the value of your home pre-renovation.
Its us that loses. Not you. This is why its in our best interest to increase the value of your home as much as possible, and also in the best interest of the renovation company that we associate with.

What sort of budgets can we provide?
Once our team assesses your property to decide the ways in which we can greatly increase its value, we then decide how much we wish to spend on your property.
Budgets will range between $10,000 to $500,000. Each property is different and requires its own unique assessment and renovation.

How do we benefit?
When your property is listed on the market when the renovation is completed, we then obviously wish to see your property sell at its greatest capacity possible.
We then own 20% of the profit of the increased value.
Please read this carefully, we DONT own 20% of your property.
We only own the 20% profit of the renovation. You own 80% profit of the renovation.

Example: Your current property is valued at $400,000 and you completely refuse to accept less than that. Thats your bottom price, and several agents agree, that you shouldnt accept lower.
We come in, and do a $60,000 renovation.
After the renovation, your home might then be valued at $580,000.
Thats $180,000 higher than the $400,000 that your property was valued at.
Lets say it does indeed sell for $580,000 after the renovation, here is what happens:

After sale, you owe us back the $60,000 we spent on the renovation.
So you now have $520,000 in your hands.
You are now $120,000 in profit. $120,000 above the value of your home before the renovation.
We own 20% of that $120,000 profit. This is $24,000.
You as the Vendor, have $96,000 remaining in profit. Thats ALL YOURS.
Congratulations.
You walk away with a grand total of $496,000. And you only started with a property valued at $400,000.
From $400,000 to $496,000, and you didnt outlay a cent before the renovation to achieve this.
You didnt have to go begging to a bank, you didnt have to borrow money from a bank.

This is why its in our best interest and the renovation companies best interest to greatly increase the value of your property. Every party wins.

Vendor: Increased value of property without risking a cent. 80% of the renovation profit.
Us: 20% of the renovation profit.
Renovation company: Got paid for the labour, tradies got employed, and because they did a great job, they get even more work from us. Thats why they want to keep doing a great job.

Gone are the days where a Vendor feels so anxious about outlaying so much money for a renovation company, wondering if the renovation company even cares or not. The tables have turned. Its now in the best interest of the renovation company to do a great job.

Its a victory for Vendors.
Get what you deserve. Maximise the value of your property. Risk Free.

Welcome to the revolution of the real estate industry.

Feel free to ask me any questions, because this concept is about to dominate the real estate industry.

Please note, this is not a business name advertisement. Im explaining new "concept", so people know whats about to enter the property industry.
 
What about if the owner of the property does not want it sold but still wants to renovate it and draw on the equity once renovated?
 
Hi peoples,

Im new to the forum

Just letting you know, Im bringing a new concept into the property industry.

We pay for your property renovation. Every cent.
No longer do you have to worry about borrowing money from a bank and paying back at interest, thus going into more debt.
No longer do you have to worry about the renovation company doing a poor job.
Our goal is to push the value of your property as high as possible.
Who benefits from the increased profit margin? YOU. The Vendor.


Risk Free
It can be a scary thing for a Vendor to outlay large sums of money to do a renovation.
We eliminate all the risks involved for the Vendor.
Yes, you are reading correctly. We are on YOUR side.
We are the ones taking the calculated risk, utilising current market data to maximise your property value.

We assess the budget for our trusted renovation companies. They then renovate your property to their best capabilities, in an attempt to provide a luxury quality finish, thus greatly increasing the value of your property.

Can the vendor lose? No. You cant lose.
Its not your money we are spending. Its our money we are spending.

What happens if your property doesnt increase in value after the renovation?
Thats our problem, not yours. It becomes our loss. You as the vendor still get the returns of the original value of your home.
If we dont increase its value, its our loss.

Why do we NEED your property to increase in value?
Simple. Its our money we are risking, thats why its in our best interest to make sure an amazing renovation job is done on your property. We not only want your property to increase in value, we NEED it to increase in value. Its our money we are risking, not yours.

Why is it in the best interest of the renovation company to do a great job?
Simple. We have built associations with the finest renovation companies in Australia. The more profit they help create for you, the more jobs they obtain in the future. So its in the renovation companies best interest to greatly increase the value of your property.

How much of the profit does the vendor get to keep?
The vendor gets to keep 80% profit that we increased in the value of your property.
For example, if we increase the value of your property into $100,000 profit, you as the vendor have made an $80,000 profit. 80% of the profit margin. And you didnt outlay or risk one cent to achieve this.
The higher we increase the value of your property, the better for you, the better for us, the better for the renovation company. Its a win/win/win.
Every party involved benefits from your property greatly increasing in price. This is why its in our best interest to make sure everything goes well, because its our risk, not the Vendors.

Origin of concept,,,,
To provide a solution to a common problem. Every vendor deserves the right to increase the value of their property. Whether you have been residing in your property, as "home", or as an investment property.
Unfortunately most property owners arent in a position to borrow more money from banks and various other financial institutions.
We solves this problem.
In essence you get a free shot to increase the value of your property. In the worse case scenario that we havent sent your property into profit, you are not required to pay us anything at all. We do not entitle ourselves to 20% of the profit margin, in the event of us not turning your property into profit. You still get to obtain the value of your home pre-renovation.
Its us that loses. Not you. This is why its in our best interest to increase the value of your home as much as possible, and also in the best interest of the renovation company that we associate with.

What sort of budgets can we provide?
Once our team assesses your property to decide the ways in which we can greatly increase its value, we then decide how much we wish to spend on your property.
Budgets will range between $10,000 to $500,000. Each property is different and requires its own unique assessment and renovation.

How do we benefit?
When your property is listed on the market when the renovation is completed, we then obviously wish to see your property sell at its greatest capacity possible.
We then own 20% of the profit of the increased value.
Please read this carefully, we DONT own 20% of your property.
We only own the 20% profit of the renovation. You own 80% profit of the renovation.

Example: Your current property is valued at $400,000 and you completely refuse to accept less than that. Thats your bottom price, and several agents agree, that you shouldnt accept lower.
We come in, and do a $60,000 renovation.
After the renovation, your home might then be valued at $580,000.
Thats $180,000 higher than the $400,000 that your property was valued at.
Lets say it does indeed sell for $580,000 after the renovation, here is what happens:

After sale, you owe us back the $60,000 we spent on the renovation.
So you now have $520,000 in your hands.
You are now $120,000 in profit. $120,000 above the value of your home before the renovation.
We own 20% of that $120,000 profit. This is $24,000.
You as the Vendor, have $96,000 remaining in profit. Thats ALL YOURS.
Congratulations.
You walk away with a grand total of $496,000. And you only started with a property valued at $400,000.
From $400,000 to $496,000, and you didnt outlay a cent before the renovation to achieve this.
You didnt have to go begging to a bank, you didnt have to borrow money from a bank.

This is why its in our best interest and the renovation companies best interest to greatly increase the value of your property. Every party wins.

Vendor: Increased value of property without risking a cent. 80% of the renovation profit.
Us: 20% of the renovation profit.
Renovation company: Got paid for the labour, tradies got employed, and because they did a great job, they get even more work from us. Thats why they want to keep doing a great job.

Gone are the days where a Vendor feels so anxious about outlaying so much money for a renovation company, wondering if the renovation company even cares or not. The tables have turned. Its now in the best interest of the renovation company to do a great job.

Its a victory for Vendors.
Get what you deserve. Maximise the value of your property. Risk Free.

Welcome to the revolution of the real estate industry.

Feel free to ask me any questions, because this concept is about to dominate the real estate industry.

Please note, this is not a business name advertisement. Im explaining new "concept", so people know whats about to enter the property industry.

This concept sounds good a little to good,why not just buy run down property ,renovate and on sell,surely there has to be some type of contractional agreement as vendor can do what they want.
you say this is about to dominate real estate industry so what companies are going to do this lets be open here.
Macca446
 
And what will you do if as I have experienced recently, where the valuers have been complete idiots and have given completely stupid valuations of which even other real estate agents have just looked at it and laughed

Note: when someone uses the words "revolutionise" or "dominate", it loses credibility instantly

A more credible term would be "potentially" or "influence" or "introduce"
 
This concept sounds good a little to good,why not just buy run down property ,renovate and on sell,surely there has to be some type of contractional agreement as vendor can do what they want.
you say this is about to dominate real estate industry so what companies are going to do this lets be open here.
Macca446

vendor enters contract with us.
The intention is to sell.
We can even add extensions, make your home double storey. Total luxury.

Why buy a property, renovate it, then sell it, with huge capital gains tax??
Thats old hat that method. And inferior.

What we do, is work FOR the vendor.
The vendor is already the homeowner.
So we provide all the funds for the renovation, and the vendor only has to pay back Post sale, as per contractual agreement.
Its also in the best interest of the renovation company to do great jobs, because it means we keep giving them more work.

If in the event the property doesnt increase in value, we still let the vendor hold the original value of their home.
WE write it off as our lost, not the vendors. Our contract protects vendors.
If we didnt increase its value, it either means we didnt do a good enough job(highly unlikely, we turn it into luxury),,, but in worse case scenario, sells far lower than expected, the vendor keeps original value of property.
So vendor doesnt risk a cent.

And yes, this is certainly about to dominate the real estate industry.
I thought of the idea while I was watching Selling Homes Australia last year.
I kept thinking, "Umm, why doesnt someone pay the vendor to renovate, then simply settle post sale, with a contract".

Sometimes its the simple ideas right in front of you, that need to be done, that havent been done.

We can add granny flats, extensions, heck, add marble benches. We couldnt care. Add gold taps. Its our money. We simply greatly increase its value.
vendor sells in profit and keeps 80% of profit.
 
And what will you do if as I have experienced recently, where the valuers have been complete idiots and have given completely stupid valuations of which even other real estate agents have just looked at it and laughed

Note: when someone uses the words "revolutionise" or "dominate", it loses credibility instantly

A more credible term would be "potentially" or "influence" or "introduce"

Valuations are done by 3 agents. They let us know the bottom price of the property. Vendor chooses the 3 agents.
Vendor then has a bottom price. as per any vendor normally has.
Agent agrees on a bottom price.
This is the agreed amount we then enter into contract with vendor.
lets say bottom value is $500,000.
If we spend $80,000 on a renovation, but the property still sells at only $500,000, even though we turned it into luxury, the vendor walks away with the $500,000 (original bottom price), and we count it as our loss. Bad reno, bad investment. Our loss.
Vendor risks totally nothing.

The only thing vendor is signed to, is they must sell with 6 months. relaxed to 12 months, if extreme personal situation arises. Eg vendor must stay for medical reasons.
We are on vendors side.
Thats why the idea was though of in the first place.
And FINALLY renovation companies now have a decent reason to behave properly and do a great job, because our renovation companies share in the 20% profit on post sale of renovated property.
 
vendor enters contract with us.
The intention is to sell.
We can even add extensions, make your home double storey. Total luxury.

Why buy a property, renovate it, then sell it, with huge capital gains tax??
Thats old hat that method. And inferior.

What we do, is work FOR the vendor.
The vendor is already the homeowner.
So we provide all the funds for the renovation, and the vendor only has to pay back Post sale, as per contractual agreement.
Its also in the best interest of the renovation company to do great jobs, because it means we keep giving them more work.

If in the event the property doesnt increase in value, we still let the vendor hold the original value of their home.
WE write it off as our lost, not the vendors. Our contract protects vendors.
If we didnt increase its value, it either means we didnt do a good enough job(highly unlikely, we turn it into luxury),,, but in worse case scenario, sells far lower than expected, the vendor keeps original value of property.
So vendor doesnt risk a cent.

And yes, this is certainly about to dominate the real estate industry.
I thought of the idea while I was watching Selling Homes Australia last year.
I kept thinking, "Umm, why doesnt someone pay the vendor to renovate, then simply settle post sale, with a contract".

Sometimes its the simple ideas right in front of you, that need to be done, that havent been done.

We can add granny flats, extensions, heck, add marble benches. We couldnt care. Add gold taps. Its our money. We simply greatly increase its value.
vendor sells in profit and keeps 80% of profit.

Hi,
Do you do this concept anywhere or only certain areas, if thats the case I will be keeping a eye on this post I have quite a few properties that would fit the bill for this.
Macca446
 
A few questions:

1. Have you actually done this before?
2. What happens if after you have spent 60k on the renovation and the house does not sell for a profit? I suspect that the vendor will still owe you the 60k and be annoyed at the damage to their property
3.How is the property value determined at the beginning of the process? Valuers / bank /real estate agents?
4. How do we determine the for sale period? What if the vendor wants to hold out for a higher offer?


Hi China

1: No. this is a brand new idea and Im still setting up the website for it. (interested parties can contact me privately by the way, Im going to be offering 50% co-ownership of concept, for free, if I feel you are a good resource) (investors will be the funders).

2: No, we totally refuse to let vendor go backwards. If we spend 60,000, and the property start at 500,000, but was sold at 520,000. we dont make the vendor pay anything. vendor keeps the 520,000. zero payment to us. the only time the vendor pays, is when we send it into profit.

3: 3 real estate agents chosen by the vendor (to prevent rigging by us)(once again, to protect vendor. vendor is empowered)

4: Vendor holding out for higher offer?? GOOD. we want that. Higher the better. We spent a small fortune renovating, we NEED it to sell high. Our goal is to push vendors property as high as possible. Because that suits us, suits the reno company, and suits the vendor. win/win/win
 
And no, this has never been done in the industry.
Normally ideas involve ways to scam money off battlers.

This goal is simple, the concept is to be run with integrity.
For example, if a hard working nurse, with a child, owns her home, our goal is to send her home into extreme profit. So she walks away with huge amount of money for home. She keeps 80% of the renovation profit.
We keep 20%.

Gone are the days where vendors will have to worry if a reno job is being done properly.
Because we are paying for it, and we are intricately involved in the detail of the renovation, by associating with the renovation company, we are able to make sure everything is done.
If reno company does crap job, no issues, its out loss, we have to spend more money with another company to make sure its finished.
This is also in vendor contract to protect vendor.

eg, if a reno company walked out on job(even though we pay them), we dont leave vendor stranded. The contract makes sure we have to finish the renovation.

By the way, we give the vendor security money. Eg, if the reno cost $60,000, we let a real estate agent hold that 60,000 for the vendor.
so if we dont finish job, vendor has 60,000 as security, to finish job anyway.
This is to prevent total disaster for vendor.
Every measure is taken to protect vendors home, and vendors well being.
 
Very good answers.

Do you offer the service on the Central Coast?

How do you go about finding a reno company for Central Coast or areas you are unfamiliar with ?

How much funding do you have to fund renovations?

Do you provide guidelines for properties which have potential to benefit from renovations? I would be keen to purchase cashflow positive properties which have reno potential and then sell for profit? In fact, it would be good for you to conduct a prepurchase inspection.

How long will renos take - will that be pre-determined in contract?
 
Very good answers.

Do you offer the service on the Central Coast?

How do you go about finding a reno company for Central Coast or areas you are unfamiliar with ?

How much funding do you have to fund renovations?

Do you provide guidelines for properties which have potential to benefit from renovations? I would be keen to purchase cashflow positive properties which have reno potential and then sell for profit? In fact, it would be good for you to conduct a prepurchase inspection.

How long will renos take - will that be pre-determined in contract?

We will be national
Not all properties can be done.
We have to assess its growth potential and what can be done to push it into profit.
I tested the market, and had 200 vendors contact me in just one week.
Heck knows how big this will be when our website is actually up and running, and public know about concept.
Reno jibs will be determined by reno company.
once they let us know costings, timeframe etc, vendor is informed.
we then pay the reno company.
reno company benefits too though, as we "associate: with them, by letting them share in our 20% returns and more jobs into the future.
So its actually in the best interest of reno company.

the old way, of say a bank financing a reno, the bank doesnt give a damn, and the bank isnt involved in the detail of reno. banks are clueless

we are the new "middle man" into the industry, because we NEED your property to increase in price, and we do the best reno possible for vendor, and we pay for the whole thing. every darn cent :)
no profit, no pay. that simple.
vendor walks away with original home value. thats in contract. vendor never incurs loss. thats in contract.
vendor just pays 20% of the "renovation" profit.
vendor always hold original value of home. thats not touched by us.
 
Im forever a pessimist,
Seems a way to be taken advantage of here is if the "Reno team" overcharge for services and hence the "costs" of reno are over inflated.
Does the vendor have the oppurtunity to see quotes of reno team and have any say if they want to use your trades?
 
How do you intend to secure your investment? Caveat on the title? One would assume that your cut would need to be paid at settlement to have the caveat lifted.

If you make a loss, will you happily remove the caveat or will it turn into legal nightmare? What if you are going to make a loss due to the level of the offer, vendor wants to sell at that price but you want to hold out for more money to migitate your losses? Who will have the right to effect the sale? Does the vendor have to wait forever until you are happy with the sale price?

Sounds like a legal minefield despite being a good concept.
 
Me personally, I would be keen to test drive the concept once the issues in this thread are clarified, placed in a contract form ratified by my lawyers, seen the quotes from a reputable reno company, etc.

I like your concept and feel that it can work once all the minutiae are sorted out. And once you build some form of track record, I think it will really take off.
 
Hello Reno

Sounds interesting.

A bit like the shared equity type loans that were around a few years ago.

Have you got the legal side of things worked out?
 
Im forever a pessimist,
Seems a way to be taken advantage of here is if the "Reno team" overcharge for services and hence the "costs" of reno are over inflated.
Does the vendor have the oppurtunity to see quotes of reno team and have any say if they want to use your trades?

All negative questions most acceptable.
Im on the vendors side. I hate greed, I hate reno companies not caring.
thats why this concept changes industry.

why should a reno company not want to overcharge? simple, we dont give them the job if they do. its our issue, not the vendors.
and reno company aims to treat us properly anyway, because we get into bed with them, so to speak.
they are "in on it". the better the job they do, the higher they lift value for vendor, the more job reno company gets

see, its post sale related. normally reno company doesnt give a damn about post sale result. they normally just want to get paid, then leave.
but they are now involved in the actual result of sale too.
the higher it sells, the more work we give reno company in the future.
 
see, its post sale related. normally reno company doesnt give a damn about post sale result. they normally just want to get paid, then leave.
but they are now involved in the actual result of sale too.
the higher it sells, the more work we give reno company in the future.

I think you would need to be far more established before the reno company gives a damn about your potential to give them more work.

Lets say you take a job on the Central Coast for the first time under your proposed arrangements. The reno company will try to maximise their profits out of you. A bird in hand is worth three in the bush. It is only after you have given them many jobs, then there will be an incentive for them to give more competitive quotes.
 
How do you intend to secure your investment? Caveat on the title? One would assume that your cut would need to be paid at settlement to have the caveat lifted.

If you make a loss, will you happily remove the caveat or will it turn into legal nightmare? What if you are going to make a loss due to the level of the offer, vendor wants to sell at that price but you want to hold out for more money to migitate your losses? Who will have the right to effect the sale? Does the vendor have to wait forever until you are happy with the sale price?

Sounds like a legal minefield despite being a good concept.

Hey Dave,

1: legality is a major bore and a nightmare. concept has lawyers creating a contract most favourable for vendor, in as many ways as possible.

vendor must sell within 6 months. if not within 6 months, its flexible to 12 months, if medical condition of vendor is poor, etc. its designed to be kind to vendor. we are on the vendors side.

in the event of vendor wanting a quick sale, they can.
why would a vendor want a quick sale at $500,000, when we lifted their property to $600,000. Hang around a few weeks, and at least let agent push thru a new "offers above" situation. Most vendors aim to maximise their property.
if vendor has to leave in a hurry, due to circumstances, and doesnt even want a decent price on their property, there is a happy medium clause met.
we recover some of our costings. vendor leaves with their original home value. this is only in the event of vendor pushing a very fast sale.
vendor is signing with us with a goal to sell as high as possible(just like any sane vendor aims to do).
if in the event we come across a bad "stock" with a bad vendor, we count it as our loss.
no different to a stock market. sometimes u you have to take your hits.
But 99 percent of vendors want high returns. thats just a basic social fact.
so 2 to 3 months of sale listing will be the norm.
 
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