Hi this is just a thought for all you doer upper typs…If you can not find property’s that are cheap, why not approach some one who has a property that they are thinking of selling, get a selling price as is, you do the place up, the owner gets how much the place was worth before the reno you take out the costs and share the profit.
Its not ideal but its a start. This is EZY
Thinking out side the Sq. [arrowhead]Sounds too EZY to me!!!
As they say “if it sounds too good to be true, it usually is” !!!!
Seriously, I don’t dispute that it COULD work, but there is a heck of alot of trust that needs to be had here, not to mention a contract in writing of some description, i.e. outlining pre-reno selling price, agreement to split profits etc etc. If you are going to rely on heresay alone……you run the serious (and not so EZY) risk of getting burnt!!! [satan][wreck][wreck]
Nice try, but I don’t think so.[rolleyesanim]
Jo
[chief]If you where one of the Brave ones
[dead2]a contract is what you would need, saying some thing like this” the house and land was worth x amount befor the reno I am prepared to put in x amount of reno’s , when the property is sold both party’s gets x amount ,with a clause saying if the property is withdraw from sale the Reno King gets x amount for the work completed.[buz2]
just thinking trying to put people with the land and people with the know how together.
Ezy does it[thumbsupanim]Personally, I can’t really see it work.
If you do your own reno, it can be worth the trouble, but to have to share your profit with the vendor will give you peanuts.
It is also likely that you will choose inferior materials to reduce costs. Doing that will not help your reputation.
You will have to do all the hard work, for who knows how long (can be months) and you’ll end up with just half the profit.
In a flat market there may not even be a great profit at all!
I realize there are good and bad reasons, but if you are just starting , or just wanting to get started, and you both site down and discuss whats a fair return, and whats required from both.
If I use $20000 dollars in material and charge a $20000 for the work , if we both do the work , then the work component would not come into the fig’s becourse they would cancel them selves out.
House worth $50000 material costs $20000 labor $200000 = $90,000 sell $180000 less $90000 = ($90000 share each $45000 these fig’s are only for e.g….who knows who is willing . even if I made 10 or 20thousand I would be happy if I was getting started.some of us for get that life is as EZY..as we make it.[buz2]Hi Ezy
I love the ambition in your post but I thought i would give you my 10 cents worth for what it is worth.
I had the same idea a few years back and decided to door knock a few prospects in my area kind of like agents do I guess. I knocked on about 20 different doors, got abused in thy fashion and had the life scared out of me by more than one widow making dog.
So I learn’t
1) I don’t want to be an agent
2) I don’t like savage dogs
3) It really is best to buy your own reno and live in it while you do it up. Well, if you are just starting any way. With renovating I have found that the project generaly takes twice as long as you think and costs more than you think.
You get the general idea???
Purse
good idea, just a thought, who pays the lost rent/ loan repayments while reno is being done?
Ezy, the way you can do this is by purchasing a property on delayed settlement, and sign a contract where the owner gives you access to do the renovations. Say you buy with settlement delayed 6 or 8 months. You do your wizz bang, find another buyer after finish and then you can have a simultaneous settlement.
May be there is a way to improove on this so that you dont have to pay for stamp duties by selling from the owner to the buyer and cashing the difference as commision.
May God prosper you always.[biggrin]
MarcI read/heard a story on similar lines of what you’ve said Ezy. It’s obviously possible, but you have to find a willing vendor I suppose.
The contract you write up says that you get the costs of the reno back before the profits are divvied up too…..
I think the example I saw was where an old lady couldn’t afford to sell for less than her asking price, and basically it wasn’t really worth it. So this person said, ok, let me reno it – and be paid for my time etc., and then anymore than your price less costs, we’ll split. Worked a treat for them both….
Cheers
MelWhat your talking about is already being done.
However the company doing it works like this.
Company pays for renovation (let’s say $10000). Their fee is 100% ($20000). Registered as a second mortgage($20000).
When vendor sells, company recieves fee at settlement, vendor recieves the surplus.Documents are drawn up giving the vendor 6 months to sell. (Normally the company has the vendor list the property exclusively with their reccommended agent).If the property is not sold in 6 months or the vendor decides not to sell (which happens a lot of the time, as they like the improvements), they will extend home loan or refinance etc.
A lot of due dilligence is carried out on the vendor before documents are signed etc.
For Example; a finance assestment and application is taken. Area of the property relevant sales etc..Miracle Home Loans
Negotiate your interest rate!Thank you to all who gave me such good advice/info.
regards EZY[buz2]why wouldn’t you just purchase the doer upper yourself and split nothing?
Project finance.
some new kids on the block can not afford to get started, if they find some one who would like to do up their property to sell with an eye on a little profit [the owner has the property and is maybe to old or not knowledgeable in renovating ]
and a person who has the knowledge but not enough finance to get started…a marrage in Heven[love]
its an EZY[buz2] win win situation.
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