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From: Ray .


Hi Everyone,

I can only tell of my experience at
the Investment Institute course that my Wife
and I attended over 9 nights from 6.30 to
11.00pm per night at the Sebel Townhouse
in Melbourne. The course was based around
expert speakers including Corporate Property
Lawyer , Certified Valuer, Corporate Property
Accountant , Mortgage Broker , a Property
Manager who lectures to the REIV , a Buyers
Agent , an Insurance Agent re property risk
management and Landlord Insurance , expert
tuition in Finance and the principles of Equity ,
and the same with Lease Options , Flips ,
Wraps , and variations of Vendor Finance.
Comprehensive notes (quality printing ) were
provided . At no stage did they attempt to sell
any property to us , or did they forcefully
endorse any of the presenters . Discussion
was encouraged at all times , this to me
being a most valuable learning tool . At the
completion of the course a full day Bus Tour
of various types of real estate and auctions
was provided , with the emphasis on
property appraisal . I should add that at each
of the 9 nights we were provided with an
excellent meal. The course also included the
Somerset Software ( fantastic ! )This course to
us has opened up a whole new vista of
investment opportunities and removed a lot of
the myths and mystique re property that I
grew up with . I believe that the combined
cost of the course for the 2 of us is $3500 ,
although I dont really know as I was one of
the lucky 3 names pulled out of the barrel at
an introductory seminar held at the
Camberwell Town Hall .(1200 attended ) , a
seminar that we very nearly didnt attend .
From our point of view , it was the best win
we have ever had! I know nothing about the
HK course. Sorry I was so long - winded,
everyone has probably dropped of to sleep
by now .
 
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Reply: 1
From: Robert Forward


It's great to here a good story about a seminar, best thing is that you have learnt (you did learn something didn't you?? hehe).

I have a question though in regards to a section of your learning.

Can you please explain what "The Investment Institute" believes a "Flip" is.

I do know what it is myself but I'm wondering what they believe it is.

Cheers
Robert
 
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Reply: 1.1
From: Nigel Kibel


Robert,

I am happy to explain what we believe a "Flip" is. I know you know yourself, and that you practice this extensively.

Firstly, there is a huge difference between flipping and onselling. Very briefly, our definition of a flip is when you locate a property; negotiate a very attractive price below true value; locate a final purchaser for the property and then "flip" the property to them for an agreed fee. You don't sign the contract of sale - they do.

The final purchaser benefits by picking up a property for a very good price, and generally positively geared. You have simply done all the work for them, and are taking a fee accordingly. The best scenario is to have found the final purchaser first before you finalise the negotiation on the property.

This is quite different for onselling, which is a whole other topic.

Nigel Kibel
The Investment Institute
 
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Flipping

Reply: 1.1.1
From: Mike .


The interesting thing about Flipping is that there is two middlemen between the seller and the final buyer instead of the usual one, being the RE agent. This is because the Flipper, in most cases, buys in bulk through RE Agencies to get the great discounts.

I don't think the Flipper is doing anything unethical here but I am wondering if the RE Agent, who is meant to be serving the interests of the seller, actually explains to their client just exactly how their property was sold?

If not, why not?

Regards, Mike
 
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Flipping

Reply: 1.1.1.1.1
From: Mike .


The seller might wonder whether the RE Agent did his best to get close to FMV for the property. Would the seller be happy if the agent didn't do his best? In some cases, perhaps selling a property as part of a bulk deal may be the only way to offload it, but not always. I think the seller should approve this method of sale.

Regards, Mike
 
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Flipping

Reply: 1.1.1.1.1.1
From: Robert Forward


There is no need for a seller to know, when I deal "en bulk" I still have to deal with the individual vendors. And I don't really care if the agent tells them, but why should RE agents be made to tell them there isn't any... There isn't any non-disclosure by the agent so they aren't breaking any laws.

And remember it is up to the seller to choose the selling price, not the agent. If the vendor doesn't want to sell at the price I am offering then all they have to do is say "no". It's simple really.

Cheers
Robert
 
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Flipping

Reply: 1.1.1.1.1.1.1
From: Mike .


Thanks, Robert. Remember I am not focusing on the Flipper here. As you know, RE Agents can and do put pressure on sellers to drop their price, even after getting the contract by highballing! Then saying the market has gone cold to justify bringing the price down to reality.

Robert, I don't understand why you deal directly with the individual vendors? I haven't in any of my purchases. I thought the buyer dealt with the vendor's representative being the RE Agent.

Regards, Mike
 
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Flipping

Reply: 1.1.1.1.1.1.1.1
From: Robert Forward


There is more to wheeling and dealing then talking to the RE Agent....

And that is when things start getting really fun.

Robert
 
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Flipping

Reply: 1.1.1.1.1.1.1.1.1
From: Mike .


Looking forward to getting the next chapter over a cold beer, sometime.

Cheers, Mike
 
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