All Topics / Help Needed! / Cash buyer

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  • Profile photo of propertyboypropertyboy
    Participant
    @propertyboy
    Join Date: 2008
    Post Count: 232

    Hi im an ex uk investor and lots of below market deals were available for cash buyers,

    Eg

    Non mortgeable properites, unihabitable, long lease issues, distressed selers, buying property sigh unseen, property with squatters, receiver sales etc etc.

     

    i am struggling to find how i can get below market value properties here in aus – i am a cash buyer.

     

    Apart froM the odd fire damaged property or <50sqm aprtment i havent found anything where i can get a premium discount due to not needing a mortgage. Even with the fore damaged property the agent said the lender would lend on land value so irrelevant that house is unhabitable as its still mortgeable.

     

    please can someone assist – there must be a market here needing cash buyers to rescue

     

    i have been tracking victorian sheriff sales for over the last year but there is only 2 listings. Where do i find problem sheriff/receiver sales? Happy to bid sight u seen as i see the i creased risk as an opportunity. Dont want to be bidding against other retail investors backed by retail lending debt  when i got cash to benefit from the premium

     

    so my qs: how do i find sheriff sales where it is required to bid sight unseen and how do i find cash only buyer deals??

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    As a Private Lender we sell a number of properties thru Sheriff Auctions or Receivership sales.

    All Sales are sold by way of Auction so being a cash buyer wont help you as all contracts at Auction are cash sales.

    Rather than buy the property itself you could always look to assign the mortgage and that way you take over the debt and can maximise returns by evicting the borrower / tenant and in the interim charge the applicable default interest rate.

    We assign a number of mortgages where we would rather take our principal and standard interest now rather than go thru the eviction process and increase our returns.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of propertyboypropertyboy
    Participant
    @propertyboy
    Join Date: 2008
    Post Count: 232

    Hi richard, bit confused – most auctions are purchased by retail investors with 80%lvrwho then have the bank fund the gap. Can you elaborate more on that comment? I appreciate most people bid at auction and dont appreiacte risk that lender may pull out but dont get you comment? Genuine qs – not trying to be smartass

     

    eg say i got 2m cash, the retail market is quite wide with couples, families etc with 400k deposit and 80% loan. However, the investor market with 2m cash ready to buy problem assets site unseen and fix the problem is cery thin – well thiner than the 80% lvr example.

     

    so how do i find these sheriff sales? Right now on vic sheriff website there are only 2 properties a d i cant see how to bid?

     

    also my understanding was sherif sales are not mortgeable?

    i need to find cash deals – where do i find these? Anyone got a deal?

     

    in the uk if u have cash you can get real discounts. I am struggling to understand why this dynamic doesnt exist here?

     

    • This reply was modified 4 months, 2 weeks ago by Profile photo of propertyboy propertyboy.
    • This reply was modified 4 months, 2 weeks ago by Profile photo of propertyboy propertyboy.
    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Not sure where you are looking for Receiver sales, We took one to Auction last week in Vic. Cor Cordis were appointed and was sold on the day with multiple bidders. Each Receiver has their own listings and most are available listed on their website.

    Trust me if you have $2M in cash you are in the mix with many other developers, investors etc.

    Cheers

    Yours in Finance

     

     

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of propertyboypropertyboy
    Participant
    @propertyboy
    Join Date: 2008
    Post Count: 232

    Are these receivers running a usual sale process to non anxious buyers? Listed on domain etc? Where are they listed? If they are listed on usual salE sites and run usual auction process i dont understand why you say they are cash? Most the buyers will bid on basis they can get mortgage to settle.

    Profile photo of propertyboypropertyboy
    Participant
    @propertyboy
    Join Date: 2008
    Post Count: 232

    Where can i look for these sales? I dont want to bid on something thats going through normal process on domain/realestate.com

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    As i mentioned you will need to look regularly at the various Receivers website.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of propertyboypropertyboy
    Participant
    @propertyboy
    Join Date: 2008
    Post Count: 232

    Please can you let me know who the main ones are in melbourne/sydney?

    Profile photo of propertyboypropertyboy
    Participant
    @propertyboy
    Join Date: 2008
    Post Count: 232
    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    G’day,

    Perhaps rephrase what you are looking for and seek tomorrow’s value today. That is, get ahead of the value curve, rather than trying to find a needle in a haystack, that is… it’s unreasonable shopping at ALDI and expecting David Jones quality. Cheap is as cheap does.

    That said, assets are ALWAYS being mispriced (over and under) and mismarketed. Look for the inefficiencies and then take advantage.

    And remember… every property can make a profit, if you buy it at the right price. The art of investing is working out that price, and the validity of the assumptions that underpin your profit.

    Bye,

    – Steve

    P.S. If you want to reach out to Richard, I believe he left his website address…

     

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of JuergJuerg
    Participant
    @juerg
    Join Date: 2017
    Post Count: 2

    Auctions are regarded as cash sales because they are unconditional. Therefore people have to have their finance in place before the auction.

    Perhaps you should look at small developments or commercial investments…?

    Profile photo of propertyboypropertyboy
    Participant
    @propertyboy
    Join Date: 2008
    Post Count: 232

    Yes they may have their mortgage in place but its always subject to valuation and lender discretion.

     

    Just because a bank has given you an agreement in principle doesnt mean they can’t back out.

     

    What is the risk if I buy a non habitable property at auction (with agreement in principle) that the lender may reject if say the kitchen is not functional or property not liveable?

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Pre-approval is an indication, not a guarantee. Finance will always be contingent on the lender’s risk assessment of what is bought. If the valuation comes back lower than the purchase price due to initial repairs, you will need to chip in more cash. If the house is a knock-down job, they may only provide a land-valuation.

    If you sign up but can’t get finance and you can’t settle, then you can lose your deposit and be sued for any further losses. It happens!

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    The valuer will makes notes in the report and the bank will decline to approve unless you can show funds available to complete the necessary repairs and upgrades. If you get into structural changes then they will likely decline. There are still options available for finance, in this case, you won’t be paying retail rates though.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

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