Browse Forums General Discussion 1 Sep 02, 2014 2:16 pm Hi There, I just joined the forum and looking forward to learning more! I have a few quick questions to get me started. First of all I am not a home owner however I am looking to purchase my first investment soon. My brother is a builder and on the weekend we discussed the idea of purchasing a run down house/apartment, renovating really nicely and selling. Hopefully do ok out of it and do it again. He is a talented builder/carpenter and also builds pools and spas and I am thinking about financing the first house or apartment and assisting him to renovate to dip our toe in the water. I.e I have the savings and he doesn't with a bunch of kids etc. My questions are can someone point out to me a good area to investigate and learn more about this process and understand the potential pitfalls that come with the territory. Our long term goal would be to do it consistently and do well out of it of course. I know there are lots of people that do this and I guess that's what I am looking at understanding. My brother built his home from an old 2 bedroom house into a beautiful 5 bedroom place and I am pretty competent with anything I lend my hand to so hopefully we can make a good team. Thanks for listening and I look forward to your replies. Re: Newby Member advice 3Sep 03, 2014 1:12 pm couple of pieces of advice - even though you are family - make sure you set up an appropriate business structure and contractual agreements. Protect yourselves from each other. This will help you maintain specific obligations and expectations around your venture, as well as preventing (hopefully) minor squabbles. See a lawyer for this. Trust me on this. Join the Somersoft forums. These are specifically focuses on property investing. Including reno/filps. There are a lot of people on there that have been doing what you're suggesting for a long time. Some focus on KDRs some focus on pure flips and some a combination of both while others purely on capital gains. A lot of the more experienced people provide their strategies over the last ten years and outline their successes (and failures). These are an interesting read. Strategies and outcomes differ greatly. You will benefit from reading and understanding some of their strategies, which include very creative ways of leveraging finances and existing assets to maximise profits (legally of course). Trust me on this. You need to surround yourself with like minded people. here is good, somersoft is better (for the purpose described) and start looking for a good accountant that understand what you want to do. Good luck. Creator of superduperonium, expert at expert things, nobel laureate, can hold my breath for 10 minutes. Re: Newby Member advice 4Sep 03, 2014 1:27 pm I cant offer any advice other than echoing the first part of Ponzu's post above, re: making sure you are both on the same page regarding finances, work required and how your plan will operate, and definitely have this drawn up legally. Often these things start out with the very best of intentions, but unexpected issues can arise and suddenly its chaos. Such as a job loss for one of you, an injury, family commitments (you mentioned your brother has kids, what would happen if he couldn't commit to the reno for a period of time due to a child being sick etc, what would happen to you paying the mortgage...) Those are just some of the possible eventualities to think of. Resentments can quickly build whenever partnerships are involved, family or not. I have had experience in that side of things, and like Ponzu said, trust me on this! Contract and document it legally. It sounds like you are planning on doing some research first, which is great. Thread: viewtopic.php?f=31&t=66299 Slab: 16/6/14 Frame: 4/7/14 Roof: 22/7/14 Lock Up: 20/8/14 Fixing: 26/8/14 PCI: 9/10/14 Handover: 20/10/14 Re: Newby Member advice 5Sep 03, 2014 1:55 pm Ponzu's post is spot on . After that, your final stage is ...."trial and error". Good luck. and I hope youre living in Syd/Melb, as elsewhere where house prices are not going stupid you will struggle to make a decent living out if it. Then we have the coming house price crash, so you better time that right too... Versaloc is a mortarless besser block system that still needs a properly engineered footing. If you just do a 400x200 footing it will fail in time. At 17m long you need it… 1 14720 Thank you so much for the effort. We will use it to talk with builder. We also had idea of building duplex instead and seeking suggest ions. viewtopic.php?f=31&t=106744 11 13761 Hi All, I engaged a tradie to install concrete retaining wall 600-800mm high over 32 meters in Victoria. Sleepers are 200*75*2000 mm installed over 17 steel posts. I… 0 6829 |