Investment Property For Sale
The term “Investment Property For Sale” is indicating a possible modality for investors, using a physical commodity.
Either land, land packages or units on or off the plan etc can fit this genre.
But what are the fundamentals of using land as a part of your investment portfolio ?
Real estate investing involves fundamentally the purchase real estate for a long term form of profit generating.
In older properties their might be a desire for an improvement of the property as part of a real estate investment strategy.
This might be feasible in the long run and be quite capital intensive and can also be highly cash flow dependent.
If these sort of problems are not well understood and managed by the investor, real estate like anything else, can lead to a riskier form of investment.
The main cause of investment heart ache is that the novice investor falls into negative cash flow for a period of time that in the long run is not justified financially, which can lead to a forced sale of the asset.
We always suggest a mixture of negative as well as positive cash flow properties, all over Australia.
If a sale was forced, on a short time scale, then that would be a form of house flipping.
Which is another reason for possible problems as the nature of the investment is often associated with short term profit with less effort.
Do you need a buyers agent if you wish to purchase an investment property is something we are often asked.
Ample Property Solutions is a buyers(investors) agent.
But we also also provide many others services that a buyers agent does not do !
Buyers agents receive a referral fee for finding the right properties for investors.
They do this based on the location, style and price range that their clients have indicated to them.
Often they use sophisticated software to parse large amounts of data and find their required properties.
Quite often, investors who are savvy and have achieved a level of success with their own property acquisitions then go on to become buyers agents since they have a skill for finding the right properties.
Once the deal(ideal property) has been secured then according to their initial contracts they are then paid within a set time frame.
These partnerships(buyers and agents) are often structured utilising a Joint Venture (JV) type Agreement.
Hard money lenders
This is a little used term in Australia at this stage, but appears to be slowly creeping into the lexicon of investors for a numbers of good reasons.
They are often more willing to finance projects that are classified as possibly unconventional, or where capital is needed really quickly.
And they will typically lend up to 50-70% (unlike banks)of the value of the property regardless of the sales price.
They can also close loans in 2–7 days if required.
Income and Credit scores might even be overlooked by some hard money lenders, however they might ask to see a business plan or exit strategy for the project.
Some are known to be re-numerated via point system,(e.g. 1 point equals one percent of the total amount borrowed), interest rate (10-20% per year is not uncommon), and an equitable interest.
This can be based on the size of the project and the final agreed upon contract.
These hard money lenders are also collateral based and usually will require first position on the property.
If you are interested in an Investment Property For Sale then house flipping might be of interest for possible short term gains in profits.
This is the opposite methodology we recommend of course !
This is basically buying an under priced(for a number of reasons) property and then quickly reselling it at or above market value.
Homes can be sold below value sometimes by uninformed sellers or those who are in financial distress, primarily through job loss or debt burden.
Sometimes a property is sold under market value because it is a “renovators delight“.
These types of property investments inherently hold more risk and more work, and therefore increase the probabilities of large profits.
Ample property solutions believe it is the right of every day Australians to increase their wealth slowly and carefully over time, using property as a vehicle for long term wealth creation.
Nothing to our knowledge beats property in the long term as a safe and secure asset class !
We have a proven system of helping our clients achieve their goals year after to year by utilising our own staff as well as independent consultants all over Australia.
Why not contact us for a free chat and see what we can do to help you TODAY !
Investment Property For Sale