Finance ready, bought an off market property

 

The next story I’m going to share with you comes from Nicole Slade, one of our great Buyers Agents. This one’s a good story because it’s a story around a first time investor and building confidence. When you’re starting out for the very first time and you’re entrusting someone else, it can be a little bit nerve wracking. What we saw here was Nicole using some really great skill in helping that customer get some understanding. We’re talking about a single, young professional guy, who’s Melbourne based and someone who’s really focused in on activity.

A really solid decision maker, he’s results driven in his own life and that’s the sort of thing he wanted to see, in terms of the Buyers Agents deliver for him, as well. He’s also a property planning client, and he’s also used our mortgage broking service as well. But he works on high trust and that’s exactly the way we like it, high trust and attention to detail because effectively I think that’s what separates us from many other operators out in the marketplace.

Whilst the lending was undertaken, and we were getting that approval in place because it is definitely getting harder and slower to get these approvals coming though, Nicole was able to start floating some properties past this particular client. What happens in that case is, we do a blueprint, and you can get an idea, but that’s a stagnant document. So when we started to see some of the properties that we were buying, we were able to build out confidence and understanding of value, the types of assets.

For this particular client, Nicole our Buyers Agent was shopping in Brisbane because the brief outlined that we had up $470,000 to spend.

We were looking at, and we needed to get, a balanced asset — so we were looking to get a bit of yield as well. Because if you think about it, young single person, not dual household income, single household income, we wanted to get a little bit higher yield for this particular purchase.

That was good by floating a couple of those properties past this particular client because we were building that trust and confidence. What happened next was we got an opportunity for an off-market deal. The finance got pre-approved, so we were ready to go. Nicole got contacted by this agent because we were buying in this particular area, and it was a divorce settlement. What happens in divorce settlements is usually they want a quick result.

The property came onto the market on the Thursday. We inspected it immediately, and we made sure we had our building inspector go over right away as well. With everything all clear, we had it under offer on that Thursday night.

So what was great about doing that, was this fact that the Saturday opening didn’t even get to happen. All of the potential other buyers who were going to circle around this particular property in a very active market in Brisbane at this time, couldn’t get in because we’d taken it and we’d put it under offer, to be able to do all of our extra work. That’s not necessarily saying we’ve made unconditional offer, but we’ve got a contract executed, and we might have a forwarding day contract for finance, and we’re also during our building and pest inspections as well. That is a very good story of a quick off the market opportunity. If you’re got someone brand new and they’re a first time investor, and they sign some paperwork with us, and we said “Here’s a property, you’re going to buy it tomorrow”, there’s an education process that has to happen here in order to high value transaction.

Nicole used the ability to be able to float some properties through and get them familiar with the types of assets that we’re buying in that location. So when that time came to strike, that customer knew actually what they needed to do. Speed was critical in this particular play and that allowed us to get this particular party under offer, and off the market before anyone else came into it. We bought that property for $450,000, and it’s yielding at over 5%, which is a great result in the current market. Good result all round, great job there by Nicole and a very, very happy client for their first time investor.