Mary – Meadow Heights, VIC
Real Estate Rescue Graduate
Background
This particular deal was one of the first deals performed by a Real Estate Rescue Graduate. This distressed property (a mortgagee in possession in this case) was sourced through methods taught in our Real Estate Rescue Program. A WIN-WIN outcome was achieved with a payout to the distressed homeowner of $90,000 & cash for a new vehicle. The graduate also went above and beyond and was able to help assist the owner purchase a caravan.
The Number
These costs include the purchase price, stamp duty, holdings, renovations and relevant adjustments, including the selling costs.
| Expenses | Cost |
|---|---|
| Mortgage to bank (capitalising arrears): | $101,000 |
| Payment to owner: | $90,000 |
| Bills, rates and Other Payments: | $20,000 |
| Cost of Purchase: | $211,000 |
| Renovation Cost | $50,000 |
| Agents, Conveyancing, Bills, etc. | $39,000 |
| Total Cost | $300,000 |
| Sold for | $450,000 |
| Net Profit | $150,000 |
Before and after photos from the renovations
Living room before
Living room after
Kitchen Before
Kitchen After
Bathroom Before
Bathroom After
Bedroom Before
Bedroom After
Top Learnings:
- Fit for purpose renovation can be done quickly
- MUST have security surveillance at reno site
- How to find good trades
- The bank can be your ‘friend’
- GST, GST, GST
