[Nu2ozMember@nu2ozJoin Date: 2013Post Count: 11]

November 13, 2013 - 10:39 pm

Time to do a bit more research/reading I think!

No doubt I’ll be back with further questions, but once again, I appreciate your time and the information you’ve provided.
All information from posters here has been very helpful, thanks for the input folks.

[Nu2ozMember@nu2ozJoin Date: 2013Post Count: 11]

November 13, 2013 - 2:29 am

Thanks for the replies, and I see there is more to this than first meets the eye. Please bear with me, with the following idea's, I'm pretty much just trying to find out what I can or can't do legally, and the implications.

The idea is to find a "distressed" property, and get it under contract (me as the buyer and/or assignee) with a deposit only payable when the contract goes unconditional (Terry, I guess this is what you referred to as a "legal Interest"?).

Next find a buyer(investor) for the property – someone who has the funds to buy it and do a reno and hold/rent it (possibly)

I'd be assigning the Sale & Purchase contract over to them (they would be the Assignee).

My fee would be shown in an "assignment" contract, which the buyer would sign (or maybe it would be referred to as a "Finder's Fee").

I'd get paid when the contract goes unconditional and a deposit has to be paid by the buyer – so it would be the investors funds which pay the deposit.

1. Is this scenario possible in Australia?

2. Great point about stamp duty Terry – is it applicable in this situation?

3. Also good point about CGT – would it be applicable to any fee payable to me by the investor/buyer?

The idea of putting an option in place has crossed my mind, but again I'm unsure how this would work with regard to Stamp Duty and CGT?

I'm trying to find out if:

a. There's a way to circumnavigate the stamp duty aspect – legally (ie: if I'm not owning the property at any stage, but only controlling it, would I be liable to pay SD/CGT?)

b. I'm able to charge a fee for simply finding and assigning a property to a buyer without the requirement to hold a Real Estate Agent license?

Thanks

[Nu2ozMember@nu2ozJoin Date: 2013Post Count: 11]

November 10, 2013 - 2:58 am

Thanks for your reply Terry,

The idea is to look for distressed property and then assign it to an investor for a fee.

This is called wholesaling in the USA, and I'm interested to know if it can be done (legally) in Australia ?

[Nu2ozMember@nu2ozJoin Date: 2013Post Count: 11]

November 9, 2013 - 10:26 am

Probably one of the following:

Victoria, NSW or ACT.

Thanks

[Nu2ozMember@nu2ozJoin Date: 2013Post Count: 11]

November 5, 2013 - 4:48 am

Jay,

Sorry for the confusion, yes I'm hoping to do some wholesaling (or similar) in Australia (Melbourne preferably) – would love have a go at doing this in the USA, but I'm assuming that it's not possible working from a distance?

Maybe you can advise if you think that would be possible?

Thanks

[Nu2ozMember@nu2ozJoin Date: 2013Post Count: 11]

November 4, 2013 - 9:09 pm

Hi Jay,

Thanks for your response & for the excellent info regarding DD, unfortunately the reason I'm looking to do wholesale deals is because I have very little funds available. I'm hoping to get started by locating property deals, assigning them to an investor or retail buyer, and taking a fee for finding the deal – as the guys in the USA do.

At this stage, I'm hoping to find out if this is a legal activity in Australia.

In New Zealand, property finders are no longer able to assign properties without having a Realtor license (which also comes with its own problems – ie: they also need to find a licensee to work under), this new legislation came in about 2 years ago, and effectively stopped the finders from "assigning" property. So, as far as I'm aware, there's no way to Wholesale property in NZ at this time. Hence my question to the Australia community.

Thanks, and any further info is very much appreciated regarding this subject.

[Nu2ozMember@nu2ozJoin Date: 2013Post Count: 11]

October 29, 2013 - 11:52 pm

Bump! (Do we do this on this forum?)

[Nu2ozMember@nu2ozJoin Date: 2013Post Count: 11]

October 19, 2013 - 2:42 am

I was just about to post a similar question.

In the USA this is a more creative way of working with the vendor, using an "option to buy" instead of an outright sale & purchase.

I'd be interested to hear if other investors in Australia use this method, who they use to draw up the contract(s), and the workflow they use until the property is reno'd & sold.