Hi everyone after reading a few more forums I’m now ready to seek more advice and to make more use of this site.
Perhaps, it’s more about confidence and first time gitters than anything else afterall I have a young family and at times it feels like risking everything.
In preparation’ I’ve read Steves Books and others, studied the Reno Toolbox, located and studied the market in the suburb my of choice, understand the difference between investing and gambling, developed relationships with estate agents etc. Like I said almost ready.
I have the money $400K (sourced from equity).
Now to decide which houses and begin the investing.
I guess the one thing I’m still unsure about is how to make the $400K go as far as possible. Specifically how much equity I will need to sink into each aquistion, for example;
I’m going to start with buy-reno-sub divide-build sell. I’m looking at cost prices of 350K to 400K in a rural WA township.
As I’m writing now I’m thinking a mortgage broker maybe able to map a strategy to stretch the money out to several properties or not?
Should I stagger purchases? For example 3-months apart.
I’m still not %100 sure about 30-60 day settlements pre-planning for fast renos and sale, or short settlement in order to get in and out for a quick turnover, any suggestions?
I’ll have more questions know doubt when replies come back.
The first steps I keep thinking are the most important, maybe maybe not?
I’m enjoying the forum and looking forward to further postings.
[hair2]
Hi. It sounds like you have thought this through a lot. I can see a problem with your plan, in so much as, you will need to find good tradesmen and builders to make the plan work really well. If I was in your situation I would start with one property and keep as much money back for the future. I would then go through the whole cycle of purchase, renovate, sub-divide and sell so that I get practical experience and also build some relationships in the community. When I feel confident enough I would move on to the next one. All the best for your future investments
Hi Jamie’
I agree with your comments in that building a team of tradesmen is one of the unknown factors at present and will take time.. Holding money back until the confidence has grown following the first project – my stress and anxiety is already easing.
Thanks for the tips.
T [hair2]
Yes certainly a mortgage broker could structure a financial plan for you to ensure that your funds went further and could be used to cover a few properties but you must remember when you repay a loan usually in the first 12 months the commission the broker receives is clawed back by the original lender.
It is therefore best to honest with your broker so he can decide on a suitable strategy. Also remember than many lenders even on the standard variable products charge early exit fees or DEF.
With more information we can assist further.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
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