Real life example of buying under market value

Good stuff D.T.

 

If the previous best market offer was $155K, how confident are you in actually achieving that value? or are you just talking about valuation wang?

You said you looked at the property previously but ruled it out, did you value it above or below the other parties $155K offer?

Did the $3,000 include repairing all water damage?

I do agree their is good cashflow and a lot of potential for valuation wang on cheapies, other people have built 100's of property portfolios on such methods.

 

Bank revalue at 171.5 and they're generally conservative.
Not very much water damage, but yes including.

 

Great job! I guess it also highlights how having a great broker can really help you when searching for great buys.

 

The poor old dear! What's a little sad about this story is whether anybody bothered to tell her that for $3000, she could have fixed the ceiling damage, installed a new heater and put the home back on the market for 185k or whatever price she wanted. Maybe she did not have the 3k or any friends or family around to advise her what's in her best interest. So that makes me feel a little sad.

 

Not everyone has the skill to identify or the means / personnel to implement

 

good work @D.T.

buying outside of square property with an eye of adding value with development opportunity ticks all the right box. well done!

 

D.T's offer was the highest on the table. That old lady would have got even less if DT wasn't there. He didn't lie or cheat to get this deal. How can this be 'ripped off'?

 

I think she was actually lucky it was DT who was buying and not some other investors who could have really ripped her off.

 

cheers for the story nathan, or is it DT

how does smithfield compare to elizabeth in the bogan rating

 

Sounds like the RE equivalent of insider trading. Some situations are sad, but someone's going to buy it.

 

Its just life. I doubt anyone will offer to pay 20 or 30k more when a lower offer was accepted. Anyone who says they would is either lying or an angel.

 

Was worse, now probably on par, will end up better in future imo.

This is because
- state govt have either demolished or renovated their housing in the area
- lots of new retail / commercial stuff popping up makes it a more attractive place to live

 

The market dictates the price. Good work @D.T. Thanks for sharing your story. The story should provide inspiration to people to look for deals to be made, where win-win is most possible.

 

So glad to hear everything is going swimmingly, Dave. Watching your FB updates with a little smile on my face.

 

That's an amazing buy. Great work. It really pays to know your markets. Keep your eyes and ears open and be aware of the the happenings of the areas you're interested in. Sometimes opportunities just come up and if you know your stuff you can pounce on it.

 

Hi DT, I was the 155k accepted buyer that lowered to 135k i had about 20 offers out there over those few weekends and didn't end up getting any of them to go through. All my Adelaide purchases were done remotely in the end.

This house is a great story!

I knew about the hot water, but the inspection came back with some other things that's why I dropped the price $20k.
The water I didn't mind but the other issues were in the "too much hassle" basket for me. I'm not into development in the near term, so it didn't suit my profile. If you pm me your email I can send a copy.

No matter what the report says though, this deal works well for you with the development potential and the next door block since you can knock down in a few years anyway.

And with the reval you've done, you're laughing on this now. That's a great result!

Damn if you weren't bidding maybe I could have done it at 135 after all

 

Ha... this is interesting!
To people who complain.. See, DT saved the old lady from Dan

 

Small world!

 

Great Post D.T! I definitely think this constitutes a win/win! You could have offered 1k over the highest offer and potentially walked away with it but you made a good offer and that was accepted and by the email sent made a world of difference.

Some people may read it as taking advantage only when you show the figures to repair the damage but this is also a large unknown. Heck until only recently when I began developing and renovating would I have likely ran for the hills at Damage like this. And people don't forget going unconditional means a heap of risk, you could be singing a very different tune if after purchase and no building and pest you realised the home was a structural mess and cost you significantly more to repair.