Where to find an investor?

Hi all,
Where could I begin looking for an investor for the proposal below? Also any tips on how to pitch it better would be helpful.
Thank you,
Holly.

Are you looking for your next investment property?
Wanting greater rental return than 8-10% and none of the headaches associated with unexpected repairs, vacant periods or nightmare tenants?

If this is you, read on.

The Pitch:
My partner and I are looking for someone who would be interested in offering us a rent-to-buy property. We have our eyes on a property on the market for $135,000 in Northern NSW. We are at least two years away from getting a bank loan because we are self employed so are looking for someone with capital or equity who would like to buy a positively geared investment property in the region and offer it as rent-to-buy.

The way I see it, a potential investor would buy the property. We would rent it at well above market rent. So if the mortgage repayments were around $350 a fortnight, the investor might get a guaranteed $300 per week in rent- $125 per week in passive income.

I’m no property investor (yet!), but I figure if repayments were $9,100pa, rental income was $15,600pa, that’s $6,500pa income.
If you put 10% down the investment might be is $13,500.
At the end of the period you get the $13,500 back that back plus $13,000 rent. Nearly doubled in two years.
Plus we would pay $100pw towards a deposit (returnable if the option to buy is not taken up). I suppose you could invest that however you wanted in the two year period.

Some problems with rental property investments are:
1. Vacant periods
2. Bad tenants
3. Unexpected repair and maintenance costs.

In a rent to buy agreement, you’d bypass all of those issues as we’d be living in the house long term, investing our own money to improve the property, and covering all of the repair and maintenance costs.

In addition to that, you’d have a guaranteed buyer for the property in two years time, at a guaranteed price.
If the purchase fell through, you’d have received above market rent for two years, and would potentially benefit from significant capital gains from any improvements we made to the property.

The Property.
Possibly the cheapest slice of land within 30km of Byron Bay – 4.7 acres. It features a self contained cabin with no bathroom, pine tree plantation, river frontage/mooring potential.
Potential to build composting toilet and more living space.
five minutes to large north coast town.
Ideal for a young, self sufficient, capable couple to improve.
Online inquiries show it was purchased in 2009 for $60,000.

This is obviously not a complete proposal. I am putting feelers out and inviting conversation with anyone that might be interested.

About Us:
We have no credit cards or debts. We own two cars. We so far have an $8000 deposit. We are both self employed in the service industry (Home and Garden services). We have impeccable rental references.

We will be paying rent for the next two years – I see that as a fact of life. But we would like to make a start on owning and would prefer to pay above market rent for a property we can add value to, and that will eventually be ours.

• This topic was modified 9 years ago by  HollyRose.