Nothing inspires action more than hearing about other people – just like you- who have achieved great things. Take a look at some of NZ Property Mentor’s success stories:
1. Know values and how to negotiate
With similar properties in the area selling in the mid to high $600,000s, our clients’ purchase price of $607,000 represented a great discount below market value. They visited the property in Weymouth, Auckland on one of the NZPM road trips (along with the other students in the group). During the open home, their NZPM mentor asked the real estate agent to ‘give us a number that would secure the property’. The agent responded with, ‘Low 6’s to $610,000’. NZPM knew the end value of the property, so said, ‘We’ll give you low 600,000s cash now’.
NZPM then coached his clients, telling them that the benchmark had been set and explaining how to negotiate. They presented an offer to the vendors who had already moved overseas to live, which meant they were negotiable because they just wanted to sell the property and tidy up their affairs. A few days later the contract was signed for $607k. The vendors were also happy to allow early access three weeks before settlement to complete renovations.
The renovations cost $20k, were finished by settlement, and just a week later our clients had sold the property for $705,000. A pre-tax profit of $52k ($35k after tax) was a great result for just a few weeks’ work.
2. Knowledge allows you to act fast on good deals
A three-bedroom house in Papatoetoe was advertised for sale and generated a lot of interest, with no less than six groups inspecting at the first open home. Our NZPM mentor wanted to see if the second lounge could be turned into a fourth bedroom without ruining the flow of the house, as this would add significant value. So, he walked in the back door, through the house, straight out the front door and negotiated the deal with the owner outside the garage there and then (on behalf of a mentoring student). Other buyers were still checking the hot water cylinder and faffing around doing their due diligence, but NZPM’s knowledge of prices in the area and how to add value to the home allowed him to act fast.
The property was purchased for $625k, renovations cost $50k, and it was sold seven weeks later for $735k. By adding a bedroom and sprucing the place up, our client made a tidy $60k gross profit ($20k net profit) in under two months.
3. Identifying the angle
Our clients purchased a 3-bedroom, 2-bathroom, modern brick and tile property in Weymouth, which was for sale by auction. When the auction paused for negotiations, they called their NZPM mentor for advice and ended up buying the property for $625k (which was $25k under CV).
Spending $27k on renovations, our clients converted the house from three to four bedrooms, and sold it for $750k in November 2017. After tax and expenses, they made a net profit of $40k.
A lot of investors don’t go for this type of construction in this type of suburb because they assume it’s a homeowner area and they don’t see the potential for improvement. But if you know what to look for and can identify the angle, there are good gains to be made.