The deal of a lifetime
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- deal of a lifetime
I reckon it really helps if you can learn your areas every heartbeat and your full time so as not to busy with other things enabling you to keep tabs.
I call the deal of a lifetime an easy 100 r 200% or more & I've noticed a pattern in my immediate area now after watching it for 4 yrs . 1 of those comes up about once a yr even within just say a 20k radius. But being able to act when it does is a different story and so with timing needed for finance generally you need a much bigger area.
The latest is a 4 ac place I've asked about in another thread actually b/c I don't have the money right now , it's 270k
There's a comfortable 2-400% in it if you were to divide it . plus a stunning 2/3 finished house that would be a comfortable 600 finished off , poss' more. But you could also do 3 x1ac blocks at around 200 each
The blocks above it are already divided , so power , water , road, sewage the lot run straight past. Pretty well all you'd have to do is the council and layout stuff .
From there if you wanted or had finance you could even stuff around putting houses on them for double again if you did it right.
Another just come to mind 1/2 an hr away , 200k buy + with around 200k spend there's around 1.2 mill potential in it over 2 yrs or so .
Pretty simple , mainly just putting houses on it , spending right & nice finishing .
Cheers
I call the deal of a lifetime an easy 100 r 200% or more & I've noticed a pattern in my immediate area now after watching it for 4 yrs . 1 of those comes up about once a yr even within just say a 20k radius. But being able to act when it does is a different story and so with timing needed for finance generally you need a much bigger area.
The latest is a 4 ac place I've asked about in another thread actually b/c I don't have the money right now , it's 270k
There's a comfortable 2-400% in it if you were to divide it . plus a stunning 2/3 finished house that would be a comfortable 600 finished off , poss' more. But you could also do 3 x1ac blocks at around 200 each
The blocks above it are already divided , so power , water , road, sewage the lot run straight past. Pretty well all you'd have to do is the council and layout stuff .
From there if you wanted or had finance you could even stuff around putting houses on them for double again if you did it right.
Another just come to mind 1/2 an hr away , 200k buy + with around 200k spend there's around 1.2 mill potential in it over 2 yrs or so .
Pretty simple , mainly just putting houses on it , spending right & nice finishing .
Cheers
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I thought this was dumb, even the first time I heard it as a novice.
Unfortunately, SS forum rules preclude promotion of syndicates, or soliciting interest. But if you're lucky, by PM you'll get to know a few forumites who might be interested in joining with you.
Due to a lack of access to ready cash, I missed out on a "deal of a lifetime" about 18 months ago. Complex of 85 x 1 and 2 bedroom units in a major US city, two storeys, 1.5 acres (from memory?), sold for $750K, making about $400K pa gross, $200K pa net. Less interest of $45K ($750K @ 6% pa) and you get $155K "net net", and that includes paying for two full-time staff to do management and repairs. And I anticipate huge capital growth in coming years. Still annoyed that I couldn't put the cash together!
That would have been hard to pass up
but this comes back to a worry of mine: If you are always invested to the max, buying "what you can, when you can" just how do you grab that one in a million deal? I like to keep some dry powder.I'm more and more coming around to this view as time goes by.That would have been hard to pass up
The deal of a lifetime is a subjective thing.
Some people think a $600k new townhouse bought for $565k, and renting for only $450 per week is the deal of a lifetime because they got it cheap and there is a lot of depreciation.
We've never had a deal of a lifetime - until after the fact, and hindsight has shown it to be a good deal.
We've had 4 d.o.a.l/t deals -
1. An IP in Kalgoorlie. Bought in '03 for $105k. Now worth approx $220k and rents for $280 p/w. Built in 1992.
2. An IP in Kalgoorlie. Bought in '03 for $151k. Now worth $320k approx and rents for $300 p/w. Built in 1991. Not as good a rent return based on today's values, but good rent return on purchase price, good depreciation and good cap growth.
3. Our recently sold PPoR. Bought in 2000 for $305k, sold a couple of weeks ago for $850k.
4. Our vacant block. Bought in 2005 for $300k. The block next door to ours was sold this week for $450k.
At the time, none of these purchases were considered a good deal really (the two IP's had good rent returns on purchase and depreciation). We wanted the IP's, we wanted the PPoR and we wanted the block, so we bought them.
But as you can see, the cap growth has been good on all 4.
Some of you might think they are all duds. It's all subjective.
REgardng the J.O.B. acronym, I feel it's used by presenters presenting beginner level advice... If not aimed directly at beginners, the advice is beginner level advice... It's for people who don't invest to hear that just having a job ONLY is just over broke, you ought to invest as well.. and then you might not have to work etc etc... so the person goes "ooh I get it"... If they spent too much time explaining the boring bits or heaven forbid the whole story, no one would remember the bells and whistles of the cool sounding acronym explanation. Same with "buy what you can when you can" again, advice to people who don't have the same idea of what 'investors' do / dont do, again presented as a simplified phrase designed to stick in people's minds.
My deal of a lifetime was what I fell into. My dad died and left his t/house worth $65k to me and my brother. I bought it off my brother as he wanted to knock down his mortgage, and now 10 yrs later it is worth $300-$320k - should have bought another 2 at the time, or at least 1 !
My deal of a lifetime was what I fell into. My dad died and left his t/house worth $65k to me and my brother. I bought it off my brother as he wanted to knock down his mortgage, and now 10 yrs later it is worth $300-$320k - should have bought another 2 at the time, or at least 1 !
Excellent result!
We know you march to a different drum Dazz.
Ya reckon??
I apologise Sunfish. I was not being fair to you with my terse question.
ozperp kindly approached me regarding the opportunity she detailed, which on the data provided at the time sounded wonderful, but I did not have the cash to support her endeavours. You were not to know this, and I probably don't have ozperp's permission to even say that.
We shall never know whether the pre-assumptions made actually stood the test of time / leasing / American laws and American residential tenant behaviours......perhaps only ozperp can confirm what actually happened subsequent to the opportunity passing her by.
The point I suppose is that ;
1. ozperp is damn good at sniffin' em out.
2. no doubt she shall bag a good'n in the future.
P.S. Don't worry about Rixter - he's not goading you.....he's just been smoking too much of that olive leaf.
ozperp kindly approached me regarding the opportunity she detailed, which on the data provided at the time sounded wonderful, but I did not have the cash to support her endeavours. You were not to know this, and I probably don't have ozperp's permission to even say that.
We shall never know whether the pre-assumptions made actually stood the test of time / leasing / American laws and American residential tenant behaviours......perhaps only ozperp can confirm what actually happened subsequent to the opportunity passing her by.
The point I suppose is that ;
1. ozperp is damn good at sniffin' em out.
2. no doubt she shall bag a good'n in the future.
P.S. Don't worry about Rixter - he's not goading you.....he's just been smoking too much of that olive leaf.
lil off bobby. not for smoking - jus lubin the smokin implement.
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ok i will throw in one of my "deals of a lifetime"
Darwin late 2003 a mate and i went up to have a look around at property, loved what we saw, low prices, high rents, massive infrastructure upgrade and increasing population. On the Saturday we picked out a few 2br units around the $120-$135k mark and went back to the hotel to discuss the lie of land and which ones to make offers on etc.
While having a few beers in the hotel pool bar and discussing the strategy I noticed the local Paper sitting on the bar, on about page 10 (not in the RE section) was an ad for a block of units 'block of 12 1 Bdr units" $780k, 200m to beach in Poinciana, that sounded good but was out of my price range as i only had 2 IP's at that stage. Read more and saw the magic words "individual strata".
Open for inspection was about to start so i dragged my mate out of the pool (which was difficult because there was some assets poolside he was more interested in pursuing!).
Anyway got out of the car and my mate says "which one of these dumps we looking at" I motioned the whole building and his attitude changed completely.
We were the only ones who turned up, turns out the vendors who were older just wanted an easy sale and couldn't be bothered with selling all separately. So we offered full price on the whole block on the basis we could sign 12 individual contracts, settle same day and do 5 in my name and 7 in my mates. That meant we owned our own units and it was so much easier to finance as we could spread around different lenders. After a bit of negotiating and creative financing I secured my 5 for a total contribution of $20k
Price was $65k each and that included "furniture".
They were leased between $110 and $120pw each.
As tenants were replaced over time we leased them as unfurnished so we did not have to replace anything.
Anyway end result is they doubled in 12 months and after recent boom are now $220K-$240k and rent for between $200 -$250pw.
Good return on $20k and have been cashflow positive since the 2nd year ( there were a few costs to sort out in first year)
Cheers
BT
Darwin late 2003 a mate and i went up to have a look around at property, loved what we saw, low prices, high rents, massive infrastructure upgrade and increasing population. On the Saturday we picked out a few 2br units around the $120-$135k mark and went back to the hotel to discuss the lie of land and which ones to make offers on etc.
While having a few beers in the hotel pool bar and discussing the strategy I noticed the local Paper sitting on the bar, on about page 10 (not in the RE section) was an ad for a block of units 'block of 12 1 Bdr units" $780k, 200m to beach in Poinciana, that sounded good but was out of my price range as i only had 2 IP's at that stage. Read more and saw the magic words "individual strata".
Open for inspection was about to start so i dragged my mate out of the pool (which was difficult because there was some assets poolside he was more interested in pursuing!).
Anyway got out of the car and my mate says "which one of these dumps we looking at" I motioned the whole building and his attitude changed completely
.We were the only ones who turned up, turns out the vendors who were older just wanted an easy sale and couldn't be bothered with selling all separately. So we offered full price on the whole block on the basis we could sign 12 individual contracts, settle same day and do 5 in my name and 7 in my mates. That meant we owned our own units and it was so much easier to finance as we could spread around different lenders. After a bit of negotiating and creative financing I secured my 5 for a total contribution of $20k
Price was $65k each and that included "furniture".
They were leased between $110 and $120pw each.
As tenants were replaced over time we leased them as unfurnished so we did not have to replace anything.
Anyway end result is they doubled in 12 months and after recent boom are now $220K-$240k and rent for between $200 -$250pw.
Good return on $20k and have been cashflow positive since the 2nd year ( there were a few costs to sort out in first year)
Cheers
BT
Dazz, your post confirms two things: That we do indeed march to different drums (Big surprise, not) and that TDOALT will mostly take years to show to be true or false.
I'm thinking of the guy Stadardt (?) who financed a F1 team Mark Webber drove for once. He bought a couple of old aircraft at auction but when he took delivery there were many millions of $s of spares included. He became an instant millionaire.
I'm thinking of the guy Stadardt (?) who financed a F1 team Mark Webber drove for once. He bought a couple of old aircraft at auction but when he took delivery there were many millions of $s of spares included. He became an instant millionaire.
I mentioned this one because I did go and see it "in the flesh" about 6 months after it sold. The place looked quite nice, occupancy looked good (based on cars in the car park and number of people milling around), and the location was even better than I'd thought. So whilst I don't have knowledge of the owner's current figures on this property, I feel quite comfortable saying that it was indeed a great deal.
Thanks, Dazz. I sure hope so!Dazz said:
Sounds like a ripper! "You must spread around kudos before giving it to Bigtone again."
The first deal I mentioned , I can't really do as it's too much right now alone but the second one I've actually negotiated a partial buy. This is one of those sitters and it's still around , just , hanging on a thread as we speak, torcher !
So I've now done the deal with the agent , I can't buy it all but it's in a few titles & I've got a deal on part . The painful part is , here's my deal ready and waiting but it's all 100% dependent on my last sale going through, which is almost through, looks good but there's been some hold ups , killen me .
This is my second attempt at this place , couldn't finance the first time . It's the same one I'm putting storage onto plus more houses .
I consider this one a deal of a lifetime but it's the first one that I've been able to actually grab when they've come up & even it's very thin right now but here's hoping .
It's all so much about finance isn't it but the funny angle is , it'd be so hard 'not' to just buy something else with the funds you keep sitting , if you try waiting for the deal of a lifetime .
Last time I tried that I got bored & settled for a so so . 2 mths later 2 in a row came up that I could have easily covered .The great buys never seem to come up when your ready & able . It's all such a patience game isn't it .
Cheers
So I've now done the deal with the agent , I can't buy it all but it's in a few titles & I've got a deal on part . The painful part is , here's my deal ready and waiting but it's all 100% dependent on my last sale going through, which is almost through, looks good but there's been some hold ups , killen me .
This is my second attempt at this place , couldn't finance the first time . It's the same one I'm putting storage onto plus more houses .
I consider this one a deal of a lifetime but it's the first one that I've been able to actually grab when they've come up & even it's very thin right now but here's hoping .
It's all so much about finance isn't it but the funny angle is , it'd be so hard 'not' to just buy something else with the funds you keep sitting , if you try waiting for the deal of a lifetime .
Last time I tried that I got bored & settled for a so so . 2 mths later 2 in a row came up that I could have easily covered .The great buys never seem to come up when your ready & able . It's all such a patience game isn't it .
Cheers
