Dear Positive Cash Flow Property Investor
We have received a Credit application from one of our qualified purchasers who is wishing to proceed with the following property:
Property located in – QLD
Purchase price – Asking $120,000 pre negotiations
Approximate monthly payments at 80% lend – $625
Approximate monthly payments at 100% lend – $781
Sale price back to Purchaser – $146,000
Applicant does / does not qualify for the $7000 FHOG.
Monthly repayments you would receive at 8.5% variable – $1175
Positive Cash flow at 80% – $550
At 100% – $394
Purchaser 1 is 38 years of age and is in receipt of both a Veterans’ Affairs Disability Pension COM super Pension both of which are CPI linked.
If you are interested in purchasing this property please email us at ****************
in answer to your question
is this a good deal?
for you – it depends on what commission you are charging
not sure this is allowed
Hi,
this was sent to me today.
i asked how good is this deal for meanythign hidden in this deal.
i am askign fellow investors to help me figure out whether i should be aware of any pitfalls
oh ok – sorry[^]
Purchaser 1 is paying almost twice your monthly repayment at 80%.
How much does this represent of their income?
Why cannot Purchaser 1 obtain their own finance?Cash flows are overly simplified.
Their monthly payments – your monthly payments = cash flow (wrong!).
You will need to find out all your annual costs and take them into account.
Also, check that the property is valued at $120,000. If your purchaser defaults in a short period of time, you will need to either let it or on-sell it again. Make sure your purchase price is correct.
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