Mary Liu – 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