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I haven’t got much expertise in this topic. Could anyone help me with the following?
Happy to help (not an expert advice)
1) What is an unconditional settlement term?
It’s the time period between when all conditions set at the exchange has been fulfilled to the settlement.
2) What is considered a short settlement term?
Anything under 30 days, I guess.
3) What is the maximum settlement term that can be negotiated?
No such limit as far as I know. Vendor Finance, for example, can easily last even 25 years.
4) In a seller’s market, what tactics can be applied for delaying settlement?
Depends on the vendor’s needs, I guess. Solutions could be around higher purchase price and/or interest paid on balance.
Hope this helps?
Merry Xmas!
EthanEthan | Terrapodean - Make Home Happen
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How to make this strategy real without purchasing the property to avoid paing stamp duty?
Ask Rick Otton (IMHO, this path comes with moral hazard and is not recommended)
Ethan | Terrapodean - Make Home Happen
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Companies like that do exist but sorting the dirt from the diamonds can be difficult, especially for the inexperienced. I invest with a small developer here in Adelaide for a great rate of return, but the bad apples out there tend to tarnish the name of all development companies from what I’ve seen on here.
Agreed.
Guess that’s true for many industries/professions, though? Finding the right and good partners is probably the most important part of any process.
Wishing us all a GREAT weekend! :-)
EthanEthan | Terrapodean - Make Home Happen
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there is no such thing as “let-others-do-the-work, you-sit-back-and-count-the-money”. such things simply does not exist. unless that person is your dad.
LOL, but I respectfully disagree.
I don’t know about these guys but generally speaking, you can totally let others do the work, sit back and count the money. The ‘catch’ is that there will be less money to count as they will take some of the profits. Could be a fair deal if you’re time-poor.
Hope this makes sense?
Cheers,
EthanEthan | Terrapodean - Make Home Happen
http://www.terrapodean.com.au
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Hi guys,have had a look around and cant seem to find info on what i need to do to get this up and going? I would like to purchase a property and rent it out as “rent to own”.
Happy to help! :-)
Do i need to have any type of license etc?
I’m no lawyer but my understanding is that the answer depends on how many of those you intend to make? If it’s just 1-2 p/a, don’t think you should have an issue, but best consult with a lawyer, yeah
can i do the property management myself (rent collection, inspections etc)
Sure, why not?
and are there special contract pro-formas/terms my solicitor will need to draw the agreement – hoping to have everything organised before seeing him so it saves me money!
Yes, on top of the standard rent agreement and sales agreement, you will need to have an option (rent to buy) agreement. We got ours from a template online (paid under $100 for it I believe?)
Has anyone experienced good growth/return with these?
Yes, we did! :-)
my husband and i have been throwing the idea around of starting with a set price and increasing it by 5% each year so that the occupier has the option to purchase at anytime, but most of the tenants we will be aiming for will need to clear their credit history so it will be at the 3 or 5 year mark.
5% p/a is a nice appreciation and you do have a nice idea. We did ours around that price but they have to exercise it within 3 years. If they do it sooner, it’s the same price so our profits are locked-in. Do you have potential buyers already?
I would appreciate all and any help and directions to resources – the most i find when i “google” is SCAM or others offering property for sale via rent to buy. thanks in advance have an awesome day!
Happy to answer your queries. The more I answer, the more I learn (because someone, somewhere, somehow always corrects at least part of my answers ;-)
Hope this helps?
Cheers,
EthanEthan | Terrapodean - Make Home Happen
http://www.terrapodean.com.au
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Great thread, everyone!
Loved the action and insights all around :-)
Totally agree that knowing ‘what’ and ‘how’ is way more important than an exact ‘where’. It’s even easier to see this in hindsight. The OP asked back in 2005 where Steve was investing. Today in 2015 we don’t really care what Steve did back then and where, do we? But we still care about the lessons. They didn’t change.
Wishing us a all a great week!
EthanEthan | Terrapodean - Make Home Happen
http://www.terrapodean.com.au
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It really is only 1 person telling us how bad LO’s are
Who is that?
Ethan | Terrapodean - Make Home Happen
http://www.terrapodean.com.au
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