Using Low Balling Strategy - Success Stories

Do you hold after this? Is that your strategy? I have just bought in Gold Coast and now my next move is waiting to save the next deposit and it is already driving me nuts that I can do little more than that now as I didn't get below market value so no next deposit for me yet. It is positive cash-flow so I am happy with it but I want to do something more than sit and learn some more while I wait. the next one will be a reno to hold to regenerate for sure.

 

I nearly bagged a great reno project for $40k under the $250k advertised price as I told them I could only offer that price as my deposit was eaten up by the other property I had just bought. The agent went to the vendor laughing at me and my front but the vendor came back and said that if his accountant said he could sell it for that price then he would. the agent wasn't laughing so hard after that.

The accountant told them they could not afford to sell it for that price but they were desperate to sell. Really bad tenants and the lease was nearly over. The place was a dump but was only cosmetic. They didn't want to enter into another lease and it meant that they were about to enter the path of holding a property which had already been on the market for 6 months but now without an income to offset the costs. It was apparent that everyone involved with that property was tired of it including the rental agent that I managed to come across by chance. Damned accountants and their stupid calculators!!

The property is still on the market but I now have no deposit to offer. anyone want a JV?

 

Hi @Paterson00,
Yep, I hold on to the property.
I was in a similar boat to you - I bought my first one in Oct 2014. Didn't really have a strategy and was more so just a buy and hold. In my case, I had to wait another 12 months till I could make the next move.

 

Killing it mate, great job so far.

 

long way to go. thanks broher @Daniel007

 

That's the way.
As long as you're aware of it.

 

excellent, any options to buy a development site in the mix as a way of adding value or buy house and build at rear ti maximise cashflow?

 

This is a strategy used by a LOT of investors in Adelaide, however with the market picking up heavily it's becoming a lot more difficult to secure deals as they're flying out the door, compared to a few years ago when properties were sitting on the market for 100+ days.

If you combine this with a reno-revaluation strategy it can give you a sustainable way to supercharge your portfolio without a reliance on property growth to make your next purchase.

 

Good call @MTR. I just have the one which I can build at rear. This will be more of a long-term play though however. Right now just looking at acquiring more property.
Once I'm done with my current purchase, keen to buy a potential dev site with an established house on it which is neutral CF in Adelaide. Therefore will be minimal holding costs and will be able to develop later down the track when the numbers make sense for me.