Deal two in my millionaire goals.
Just going to give you a little diary entry on the second deal. On the weekend i went up to my mums to see if there we’re any adds in the paper for a garage sale or clearance sale to look for things for a unit renovation. I could not find any. I wined at mum “what am i going to do now!!”. Mum passed the paper over and said go for a drive out and have a look at this property and pointed out an advertised cottage in the paper going for a very affordable price. I gave it a little thought and ummed and erred then we got in the car drove out to have a look. To cut a long story short the numbers stacked and i could add value via renovation, built in equity on purchase day and positive cahsflow from day one of about $50 per week. My negotiations could not get the price down any lower. They wanted the price they were asking and had people hovering around the deal on the day offering. I thought to myself the asking price was good deal anyway. In something i read from Steve McKnights book at the split second when i needed something to get this deal across the line. I remember it saying, “don’t look a gift-horse in the mouth”. I called instantly adrenalin flowing and put the offing in right on the full asking price. I couldn’t go wrong. “It’s what the vedor wanted”. The agent called later and confirmed the offer was accepted. if your young and don’t know always remember, “Mum’s know what’s best!”
Hi Daniel
Well done, I think sometimes you have to buy at the asking price. Recently I saw an apartment offered in a building where I already have 2 and they were asking over $80,000 less than I have just had mine valued at. I offered them $3,000 less than the asking price..just thought it might cover some of the costs, but a smarter person offered the asking price and of course got it. it would have been positively geared from the first minute…silly decision.
So a few weeks ago I bought a property at auction, even though I didn’t have finance arranged because the price was $20,000 less than I offered before auction. I have had a nervous few weeks rearranging finances, but it goes through next week. I think if I hadn’t bought it on the auction day they would have held out for a higher price. A good buy, a 4 bedroom house, 2 bedroom apartment and a seperate fully contained studio apartment on the one title. Plus fully renovated so i can let it straight away.
Finances are a bit stretched now though, so have to wait for prices to rise again.
Thanks Terry,
I felt a sense of NO i don’t get the price any cheaper then the asking price but i am only fooling myself because my mindset has been tuned to try negotiate down. But that’s because almost all deals i find need to come down to make the positive cash flow and or value adding. Still i put my anxious question out into the universe and asked the question to two other people in the room and they said back “offer the asking price”. Well Terry sounds like a good time for you to be nuckling down and really focusing on your budget so you can get another property in the bag… soon
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