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Discussion in 'Introductions' started by Izzie Channel7, 2nd Feb, 2017.

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  1. Coastal

    Coastal Well-Known Member

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    4 Hawthorne Street, Beenleigh, Qld 4207 - Property Details

    This is how you flip.

    Buyer purchased for 210 k in november 2016 and sold it for 310k in jan 2017. I think it has been renovated....but sweet swwet profit for couple months work. Imagine doing 10 of these deals every year.

    I reckon it was an off market deal from a distressed seller, because you aint gunna get a deal at that price in beenleigh.
     
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  2. spludgey

    spludgey Well-Known Member

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    If I was considering doing a flip, I'd look for a higher priced area. $100k is nice, but once you subtract all the costs, there wouldn't be that much left.
    I highly doubt that you could do 10 of these a year either, as there would be a lot of hours in this project, even if all labour was outsourced.
     
  3. Otie

    Otie Well-Known Member

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    After stamps, CG tax (GST if doing 10 of these), labour, lost wages if DIYing, bank and conveyancer fees, I can't imagine much being left. Plus the headache of financing these
     
  4. bob shovel

    bob shovel Well-Known Member

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    It's a quick turn around and probs 40k spent on work (assume no diy) . New kitchen bathroom, paint inside and out, floor boards +some misc

    Lose 5%on the way in -$10,500
    Lose 7%on the way out -$21,700

    $237,800 - $202,000 (need to confirm purchase price, i found $202k)

    =$35,800
    Buy then there's cgt and/or gst (nfi? -30%?) Also accountant and possible trust issues -$2k?

    Walk away with 25k possibly. Id do it for a few months work. But buying bmv is very important plus selling to the right person
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Is the right person a visually impaired, interstate fhb who is buying site unseen without a BA or P&B?
     
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  6. bob shovel

    bob shovel Well-Known Member

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    Yes. I would have also accepted over exited interstate investor
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    @bob shovel - Or a cashed up dealer looking to set up a math lab?

    It's getting harder to gain entry to those selective schools. :p
     
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  8. bob shovel

    bob shovel Well-Known Member

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    Those banana benders are a little slooow
     
  9. MTR

    MTR Well-Known Member

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    Exactly, You don't need to flip in Syd or Melb you should have doubled your money if you purchased in 2013 and sat and watch, the trend did the rest
     
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  10. 380

    380 Well-Known Member

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    What about an Aussie flipping in USA/Atlanta

    Just placed another offer on another Single Family Home, minor cosmetics, will post soon. Should have $50,000 profit in this new deal.

    We are looking at volume, started purchasing in December 2016, we expect to just continue flipping, we are aiming for $1M by December 2017.

    Atlanta - USA - Renovation

    Atlanta GA - Renovation No. 2

    Atlanta- Quadplex to Single Family Conversion

    Demolition - Re Build 4 Bed 3 Bath Single Family Home - Atlanta

    Atlanta - Single Family Home

    Adding Value - developing commercial
    Commercial Land Purchase - Atlanta, USA

    Renovating but holding
    Latest Purchase in SMSF (Atlanta GA)
     
    Last edited: 11th Feb, 2017
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  11. Otie

    Otie Well-Known Member

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    Now that's more like it. Flipping with money to be made!
     
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  12. Otie

    Otie Well-Known Member

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    Plus u run the risk of market stagnating
     
  13. bob shovel

    bob shovel Well-Known Member

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    @Izzie Channel7 how's the show coming along? Have you learnt a few things from the wise folk @ property chat?
     
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  14. sanj

    sanj Well-Known Member Premium Member

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    I call bulls##t on that for many people, obviously don't know you specifically.

    Ultimately half the population of this country gets paid less than 5-5.5k per month, often doing jobs they don't enjoy. Assuming the people who might apply to this enjoy property, I find it hard to believe they would insist on being paid the equivalent of 3.5 years or so salary for a few months work.
     
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  15. Otie

    Otie Well-Known Member

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    No way I'm far too shy! Would hate people knowing me. I'd do it if I wasn't being filmed in a heartbeat though. I would be portrayed as a mean villain because I am bossy and mean when under pressure and renovating!
     
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  16. Perthguy

    Perthguy Well-Known Member

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    I would do it for $150k guaranteed or not do it. I have a massive phobia of being on tv. I really don't want to be recognized walking down the street. My worst nightmare! Hence it would take a large sum of money to get me on tv. Come to think of it, likely more than $150k
     
  17. MTR

    MTR Well-Known Member

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    Of course never buy unless there is 20% in the game
     
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  18. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I would be happy with $20k or more profit on a flip without too much labour involved
     
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  19. MTR

    MTR Well-Known Member

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    If you employ a contractor/builder and you don't get your hands dirty, why not.

    If you have to get your hands dirty just to make the numbers work I would be giving it a big fat MISS.

    Mentioned this before if you buy when the markets start to rise you don't need to do anything as value would be increasing. Also dependent on areas/suburbs buyers pay a premium for original properties/untouched.

    MTR:)
     
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  20. Coastal

    Coastal Well-Known Member

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    In my example

    the buy price was $210000 so the costs would be

    $6224 stamp duty
    Legal costs - $1800
    Reno - I would say they are professionals so they would have contacts - say $20000 k
    Holding costs for 3 months = $2500 for example only
    Other finance costs say $500 for loan exit fees if finance sourced from bank
    Other costs say $1000

    Sell Price $310000

    Selling costs
    Agents fees say 3% or what ever = say $10000 incl of advertising
    Legal costs $3600

    = $46000 rounded up but say we use $50000 k for all costs

    Total profit = $100000 - $50000
    = $50000

    Not bad for 2 months work doing organising. If Reno costed say $30000 - $40000, there would still be a $30000 - $40000 pre tax profit. Nothing wrong with that. I heard of people doing 3 or 4 projects at a time in Aus.

    http://www.townsvillebulletin.com.a...e/news-story/3f06922683e1bd16c42cbf08bb8e64d2

    The above investor is using this strategy in a down market and not relying on CG.

    You make your money when you buy

    The other thing is some people don't have a big borrowing capacity so buying a property in Brisbane for $250k might be all they can borrow and they might only end up with a couple of properties. If a more active approach is taken, one could reinvest the profits into buying properties outright and eventually living off cashflow or invest as normal and use money made from active investing for their lifestyle.

    Do a couple of these type of deals and buy a more expensive CG property or PPOR.