All Topics / General Property / News.com article: best bargain buy in Qld this week & positive cashflow

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  • Profile photo of Luke TaylorLuke Taylor
    Participant
    @world-changer
    Join Date: 2005
    Post Count: 415

    Hi everybody,
    I have had a few people ask me to post information on this quite straightforward cashflow deal we did last week in Qld.
    It is featured here ;

    http://www.news.com.au/finance/real-estate/selling/this-weeks-bargain-buy-of-the-week-is-in-riverview/news-story/fb9e929a7ee7afa64a733e78e48d0a54

    Luke Taylor | Hope Property Investing
    http://hopepropertyinvesting.com
    Email Me

    Property Support,Strategist and Buyers Agent

    Profile photo of Luke TaylorLuke Taylor
    Participant
    @world-changer
    Join Date: 2005
    Post Count: 415

    Some details of the deal in riverview qld.
    Purchase $150K 18/5/17
    reno:$16K
    timeframe:7 days work
    listed for rent now:$305

    see link;

    http://www.realestate.com.au/property-house-qld-riverview-421292870

    Luke Taylor | Hope Property Investing
    http://hopepropertyinvesting.com
    Email Me

    Property Support,Strategist and Buyers Agent

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75

    Hi Luke,

    That’s incredible! Thanks for sharing!

    If you don’t mind me asking… How did you go about finding such a bargain property?

    Regards,

    David

    Profile photo of Luke TaylorLuke Taylor
    Participant
    @world-changer
    Join Date: 2005
    Post Count: 415

    Hi Luke,
    That’s incredible! Thanks for sharing!
    If you don’t mind me asking… How did you go about finding such a bargain property?
    Regards,
    David

    hi David,
    no problems at all!
    That one was a real blessing from God actually .

    How much listed -$200K
    How did I find it-
    For this 1 I just kept an eye on the net and originally I had it for a client contracted at $195K(I am a buyers agent)and we got a building and pest report and the buyer freaked out.
    This is due to- often the builders leave so many things with doubt in the buyers minds .
    This is often because of all the sueing going on these days its sad but a reality that people(especially builders & pest guys) just need to cover themselves .
    -So I kept the agent informed all the while with all the delays with 2nd inspections etc and built relationship with her .
    -Then after a lot of mucking around with buyer they pulled out on B&P clause (and that was the 2nd buyer who had done this).
    So by this stage sellers just need to get out and get scared that every buyer will keep mucking around so I said I will do a cash unconditional offer on it (no finance clauses or any options to pull out of contract)at $145K she came back at $150k I said fair enough that’s not a bad buy so did it .

    Also it was a housing commission style ownership so the owners weren’t set on emotionally fixing it up to get the max they could get for it .This often helps

    Luke Taylor | Hope Property Investing
    http://hopepropertyinvesting.com
    Email Me

    Property Support,Strategist and Buyers Agent

    Profile photo of Luke TaylorLuke Taylor
    Participant
    @world-changer
    Join Date: 2005
    Post Count: 415

    The figures go;
    3 bedroom house with converted garage to 4th bedroom: Brick and Tile
    Purchased on 17th May 2017 : $150K
    Renovation Cost: $16K
    Renovation time frame: 7 days
    Pre reno rental income : $220 per week
    Post reno rental income listed at : $305 per week
    New Value Estimate-(now)June 2017: $220-230K

    Capitol growth Potential : 5-6% annual for next few years
    Reasons for bargain buy:
    25 holes in walls,
    10 cracks in fibro,
    7 smashed windows/glass doors,
    filthy dirty inside and out,
    a full house of furniture in the backyard along with motor bike,etc
    1.5 metre high grass,
    10 trees overgrown around house,
    x10 old lights,smashed internal doors x3,
    damaged kitchen benchtop,filthy cupboards,
    x2 cupboards required repair,torn lino,
    broken plumbing pipes outside,many taps required replacement,bad drainage,
    filthy walls required painting throughout,
    old vanity,
    shower screen damaged and whole bathroom needed re grouting,
    no curtains,old letterbox,missing fence on x1 side,
    air con unit remote missing and front broken off,
    x2 security screens missing,all flyscreens U/S,
    retaining walls poor,manhole cover missing,
    eaves need painting,external doors required painting,
    foundations settlement (a few cracks showing evidence so we rectified the drainage issues ,
    so we removed the trees and fixed retaining wall and water flowing into house surrounds
    (& to allow further foundation repairs later if needed we allowed $10-20K equity in the value- as this would be worth $240K now otherwise)

    Other reasons for cheap buy: We had to go cash unconditional contract to ensure quick sale for vendor

    Hope this helps guys
    All the best !

    Luke Taylor | Hope Property Investing
    http://hopepropertyinvesting.com
    Email Me

    Property Support,Strategist and Buyers Agent

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75

    Hi Luke,

    Blessing from God indeed :)

    I guess One Man’s Trash (Or Woman’s in this case) is another Man’s Treasure

    You mentioned that a lot of buyers were scared off by the Buildings and Pest Inspection Reports:

    For this 1 I just kept an eye on the net and originally I had it for a client contracted at $195K(I am a buyers agent)and we got a building and pest report and the buyer freaked out.

    Just wondering why they freaked out? Were there any Structural problems with the property, plumbing problems or electrical problems? Or were most issues cosmetic related? Or was it because of uncertainty in the reports?

    So by this stage sellers just need to get out and get scared that every buyer will keep mucking around so I said I will do a cash unconditional offer on it (no finance clauses or any options to pull out of contract)at $145K she came back at $150k I said fair enough that’s not a bad buy so did it .

    Quite an interesting concept. Stupid question though… When you say Cash Unconditional Offer, do you literally have to have the cash in your bank account or can you borrow from the bank to make this offer?

    Purchased on 17th May 2017 : $150K
    Renovation Cost: $16K
    Renovation time frame: 7 days
    Pre reno rental income : $220 per week
    Post reno rental income listed at : $305 per week
    New Value Estimate-(now)June 2017: $220-230K

    Very impressive figures and timeframe indeed. Just wondering how you executed all of this… Did you just watch DIY videos online and do Google searches on how to fix various problems around the house, or did you simply look in the yellow pages to find contractors to hire?

    Would you mind sharing before and after pictures?

    Cheers,

    David

    • This reply was modified 2 years, 8 months ago by  David Thiu.
    Profile photo of Luke TaylorLuke Taylor
    Participant
    @world-changer
    Join Date: 2005
    Post Count: 415

    Hi Luke,
    Blessing from God indeed :) totally !

    I guess One Man’s Trash (Or Woman’s in this case) is another Man’s Treasure:totally

    Stupid question but when people say cash unconditional offer, does it literally mean ‘Cold Hard Cash’ or can you actually borrow from the bank to make this offer? you could used borrowed funds as long as you don’t have any problems getting it approved and are ready to go with it within time frmaes…
    basically it means the seller wants it sold without any out clauses for the buyer so they are guaranteed a sale … and they wont be stuffed around any more

    Also curious about how the renovation was executed… Did you just watch DIY videos online and do Google searches on how to fix various problems around the house, or did you simply look in the yellow pages to find contractors to hire?…. how – I just started getting handymen and tradesmen in to my houses and watched them /helped them … so now about 12 years later I am doing them on my own and I use airtasker for lots of different guys.This keeps them honest
    The pictures from the real estate website look amazing, but I’d love to see the contrast from before and after if you don’t mind sharing :) see below

    Cheers,
    David

    Hey David

    If you click on the news.com story then click on the property address it brings up an old listing for the property when it was first bought.
    There are a few pics in there but of course it looked a lot worse in real life .

    http://www.news.com.au/finance/real-estate/selling/this-weeks-bargain-buy-of-the-week-is-in-riverview/news-story/fb9e929a7ee7afa64a733e78e48d0a54

    hope this helps !

    Luke Taylor | Hope Property Investing
    http://hopepropertyinvesting.com
    Email Me

    Property Support,Strategist and Buyers Agent

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    Excellent result and thanks for sharing, Luke!

    Love reading real stories (loaded with details, photos and figures!) that showcase how great, easy and quick it can be to turn an ugly duckling to a beautiful golden eggs laying swan 👍😎

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of Luke TaylorLuke Taylor
    Participant
    @world-changer
    Join Date: 2005
    Post Count: 415

    Excellent result and thanks for sharing, Luke!
    Love reading real stories (loaded with details, photos and figures!) that showcase how great, easy and quick it can be to turn an ugly duckling to a beautiful golden eggs laying swan

    awesome thanks so much guys !!

    Luke Taylor | Hope Property Investing
    http://hopepropertyinvesting.com
    Email Me

    Property Support,Strategist and Buyers Agent

Viewing 9 posts - 1 through 9 (of 9 total)

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