Advice for buying/selling/flipping? Investment partners?

Discussion in 'Investor Stories & Showcase' started by Tamat, 7th Feb, 2020.

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  1. Tamat

    Tamat Member

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    Hi all, I'm wondering is anybody can help. While I already have my investment properties, I'm wanting to get more into the business of buying, selling or flipping properties. So I can pay off my debts and mortgages. Are there people or companies out there that I can join up with? Because I can't afford to do it alone. I have heard of something where you can find partner's, but I can't for the life of me remember where I found them. I met them at an investment seminar once. I guess I'm trying to find some kind of business where I can make income from so I can eventually work for myself. I have a lot of experience in real estate and investments. And I also have a passion for property, so I would like to turn this into my future, so I no longer have to work for somebody else. Can anybody out there help?
     
  2. thatbum

    thatbum Well-Known Member

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    Potential partners will probably be asking what you bring to the table as a JV partner then. If its not money, is it expertise?

    Would you be across what needs to be done in terms of the whole process? And if not, maybe that's something to work on?

    Warning it can be a long journey to get there - I've only just finished my first proper development for profit, and that's with maybe 8 years or so of general property investing experience and hanging out extensively on these forums.
     
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  3. Tamat

    Tamat Member

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    Gosh, thanks for that. Yes I could bring experience in buying selling renovating etc.
     
  4. Trainee

    Trainee Well-Known Member

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    in what way? You own a couple of ips and have sold before?

    Youve removated and sold at a profit before? can you prove it with photos timelines and numbers?

    Just saying you have experience isnt convincing.
     
    Last edited: 7th Feb, 2020
  5. wylie

    wylie Moderator Staff Member

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    Are you in a position (married, kids?) where you could buy a run down place, live in it whilst renovating it, keep it or sell and do it again. You could do this a few times to make some profit. If you do it too often, it would become a business, rather than you moving up the ladder, so you'd need to check this out.

    I wanted to flip properties when our youngest reached school age, but we just didn't have the money to do it. We had investment properties but not the cash to improve them.

    We're now finally developing one of those properties, and it has still taken considerably more money than we planned. It is not cheap nor easy.
     
    Last edited: 9th Feb, 2020
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  6. sash

    sash Well-Known Member

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    Thats is great summary...Wylie.

    A couple of things:
    1. I see people jump straight to developing 3-4 townhouses without any experience. This is very risky....despite what people say.

    2. Keep it simple...lots of money to be made by buying a dump...designing a house for the market and selling it.

    3. Remember...if you develop make sure you understand the tax and GST implications. Most people fall down on this. For example did you know that when you sell a new property ...the buyer's solicitor/conveyancer can hold up 7% of your sold price to cover for GST you then have to recover this from the ATO. If you have not structured well..may not be profitable. The other thing if you are developing you are carrying out an enterprise...so no 50% CGT reduction benefit.

    4. Finance...most important item. A lot of people do not have to structure this.

    5. The cost of development of renos are notriously unpreductable. You need to have a large stash of cash behind you.



     
  7. Leeroy93

    Leeroy93 Well-Known Member

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    Everyone here has made some great comments. Its clear that developments are risky, even at the smaller end. Just plan diligently, assessing exactly how much cash you have available, what you can afford to risk and other relevant factors like time available and experience. Honestly though, you'll never learn more than by having skin in the game. I would actually encourage you to get involved in one way or another, as a partner in a small development or even running a small job yourself. Long term, you will be better off with the knowledge and experience to know if its something you wish pursue. Every experienced developer will recommend caution and often they'll spend more time talking about the issues they faced, how far over budget they went etc. It can be a very rewarding space if you are smart, ambitious and willing to accept the ups and downs. Read the forums, talk to experienced people and take action.