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Methods used to purchase a property

Discussion in 'The Buying & Selling Process' started by BurnettGroup, 11th Sep, 2015.

  1. BurnettGroup

    BurnettGroup Well-Known Member

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    Has anyone used any other methods other than a Real Estate agent to purchase a property, ie; House, House and Land, Off the Plan, Investment, Commercial etc. At my last count there was 50 x different ways. Iv'e used 2 of them with success, although my first attempt (many years ago) went wrong.
     
  2. York

    York Finance Broker Business Member

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    Private Sale?
     
  3. BurnettGroup

    BurnettGroup Well-Known Member

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    That's a way of purchasing, did you or have you used any method, deferred settlement, no money down, exchange of other property to complete transaction etc. Perhaps used a boat or a car as a deposit.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    EOI
    Tender
    Turnkey

    What are you asking?
     
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  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    Direct from govt with no RE
    Letter box drops with no RE
    Had conveyancer cover my deposit on one
     
  6. BurnettGroup

    BurnettGroup Well-Known Member

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    If anybody has purchased a property other than using an RE.
    Approaching the owner directly and negotiating your own terms, between buyer and seller.

    For example, you see a property in run down condition, you approach the owner, you agree to rent it off him, for a specified time, you do it up and then sell the property later on and split the profits on an agreed percentage.
     
  7. BurnettGroup

    BurnettGroup Well-Known Member

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    I like that last option. Thats thinking outside the square, everyone wins.
     
  8. BurnettGroup

    BurnettGroup Well-Known Member

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    I haven't used these method's, but if anyone has, how did it go.???
    You can use trade dollars from a barter organization. There are also some trade organizations that specifically target trades people in a skill for property trade exchange. They are after people such as plumbers, electricians, painters etc. In exchange for your skills, you can accumulate trade dollars which they will let you use for the deposit on a particular property.
     
  9. BurnettGroup

    BurnettGroup Well-Known Member

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    Do you have a hidden ability. How many times have you heard someone say, "Boy, if I only had the money to buy that house, I could fix it up and make a fortune on it"

    Target a property that is in need of some TLC, fix it up and then reap the benefits of the increased equity of the property.

    This can be done as long as there is an agreement drawn up between the owner of the property and yourself.
     
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  10. BurnettGroup

    BurnettGroup Well-Known Member

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    Owners Terms. This is the way this has been described in Australia for over a 100 years. Vendor terms or vendor finance is another way of saying the same thing.

    The seller of the property can offer different ways for you to buy his house. These terms might or might not suit the buyer.

    It might be that the seller wants a certain asking price. Because of this, he then might have some flexibility on the terms and repayments.
     
  11. BurnettGroup

    BurnettGroup Well-Known Member

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    Owner leaves money in the deal. This is simply a way of saying that if want to purchase my property, I want most of the money now and the balance that you owe me you can pay this at some later stage.

    Do these deals have terms attached..????

    Who knows, maybe yes and maybe no. It could also have an interest rate component incorporated, so keep an open mind and your eyes open. In effect what the owner is doing here is leaving his equity in the property for you to use.

    Remember, it's his money and he is going to want it to be repaid.
     
  12. Perthguy

    Perthguy Well-Known Member

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    I have. I wanted a commercial building. Myself and my business partner negotiated the price and the terms of the sale with the seller. It didn't go well. :(

    The negotiations were fine. The issue was that the purchase contract was subject to Council granting development approval for the building. Council refused our application, so the contract was void. :mad:

    The owner was having trouble selling the building because his real estate agent was an idiot. So after my contract fell through, I introduced his to my good real estate agent. He signed up with my agent to sell the building and got a quick sale and higher price than what I was offering. Good for the owner, good for my agent (who got a nice comission) but bad for me because I lost a great deal due to a stupid council :(
     
  13. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Yes I have quite a few times. The dynamic is basically letting them know you are interested to buy it and how it can benefit them too. You really need to highlight the reasons why it would be better to work with you then to put in on the open market. In these situations you really need to be vendor focused and find out what their needs are and meet it as best you can, whilst at the same time making it financially viable for yourself.
     
  14. BurnettGroup

    BurnettGroup Well-Known Member

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    Well done, nice to know there are people using these methods. Did the first one go to plan, or was there a few shaky moments, when you thought it would all go A over T.
     
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  15. BurnettGroup

    BurnettGroup Well-Known Member

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    I know how you feel, I had a problem with council when I purchased a pub. If I didn't complete ablution requirements before a certain time, they would make an application to the LT, to cancel my booze license. The broker decided at the last minute, that he had forgotten to send me doc's, (not related to the sales contract), but for work needed to be completed in the near future. This also affected my rsates as well. Extra dunnies equals extra water equals more money for council.
     
  16. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Well Its interesting you ask that :) I'll never forget. My first one was in Rozelle by door knocking and basically I got someone who was interested so he welcomed me in to have a chat. I was quite nervous because its not what I was use to and it was outside my comfit zone. The guy didn't help much he was in his late 60s and pretty tough. I was sweaty, jittery, stuttering at times and lost my train of thought a few times. Needless to say he was not impressed and I was sent on my way shortly thereafter. I knew I blew it and I sucked big time. All I can say is my poor dad suffered after that. I prepared many scenarios and would role-play with my dad over and over and my dad would give me good feedback and be really tough. Did this for about 2 months and then went out again. I wouldn't say I was 'perfect' in execution after that but it helped a hell of a lot and that year I actually made two great deals this way for myself and the vendor.
     
    Last edited: 12th Sep, 2015
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  17. Waldo

    Waldo Well-Known Member

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    Care to share your story, or atleast the 'method' you used?

    Edit - read the rest of the thread, you've expanded a tiny bit.
     
  18. BurnettGroup

    BurnettGroup Well-Known Member

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    @Waldo The 2 x methods, Iv'e used, I haven't mentioned yet, will save them till last. They maybe out of the scope of most people on here, you need big swingers to put them into action. Im also adding different methods to this thread, in the hope it will jog someone into thinking, "now thats something that may work, might give it a go". Hopefully others will reply with both positive and negative comments as to why it will or no it wont work. The old saying, "If you dont try it, you'll never know the outcome".