1.  No money down Renovate & Flip Solving a personal problem.

2.  Deep Orange Design Product design & development The Property Solutions Guy Creative Vendor Finance Solutions Buy Without A Bank Vendor Finance property directory website www.(any of the above).com.au neil@(any of the above).com.au

3. R & M’s Story May 2013. R contacted me off an ad I placed on Gumtree. 4 bed 2 bath + pool on 704m² Had enough of the Sunny Coast and wanted to move to Goldie. Recently lost their jobs due to health & personal problems.

4. R & M’s Story Purchased the house in 2002 for $247k Shot up in value until 2008 Combination of unwise decisions, neglect and misfortune House maintenance suffered. Bank was closing in on them. Changed to Interest Only. Could not afford to fix or sell Wanted to get as much equity out ASAP, hoping for $150k.

5. Worked out a mutually beneficial arrangement to do JV Signed a HOA to sell and R&M get $440k, I keep anything above I estimated value at around $450-$460k based on similar sale on the street. Started marketing as Rent To Buy for around $470k

6. Virtually all potential buyers were put off by state of the house. My cost to keep marketing: $0 + time. Rent To Buy – Typical profits Upfront: $10k Weekly cashflow: $100-$150 for 3-5 yrs ($15k-$40k) Backend profit: $20k-$30k when complete

7. R&M called to say that they just need to go. Moving to Gold Coast in December so they can get sorted before school year. They will try to rent the house if not sold. Did not do anything to make it “rentable”. Did not even contact an agent. Saw the opportunity to help R&M and make a profit at the same time. Got professional valuation at $400k & building inspection Sat down and looked at the options available

8. Option 1 Move to GC & rent Christmas expenses Try to sell or at least rent the house Keep paying mortgage Hope that bank does not foreclose Holding costs to sell with agent in 3-4 months Rent - $370wk x 13 weeks $4810 Mortgage $1300 x 3 month $3900 Rates, insurance etc $1000 Minimal pre-sale repairs $10,000 Total: $19,710

9. Option 1 Move to GC & rent Christmas expenses Try to sell or at least rent the house Keep paying mortgage Hope that bank does not foreclose Holding costs to sell with agent in 3-4 months Rent - $370wk x 13 weeks $4810 Mortgage $1300 x 3 month $3900 Rates, insurance etc $1000 Minimal pre-sale repairs $10,000 Total: $19,710 Best case sell price: $410k Holding & repairs: $19,710 Agent Comms: $11k Marketing:$3k Stamp duty:$12k Legals:$2k Mortgage:$287,190 Equity:$75,100

10. Option 2 Move to GC Give me legal control of the property No more expenses or outgoings No need to spend on repairs Give me some time to add value, sell and profit Receive the equivalent value of over $90k Work with me on a solution that will net approximately $90k benefit to R&M.

11. Option 2 Move to GC Give me legal control of the property No more expenses or outgoings No need to spend on repairs Give me some time to add value, sell and profit Receive the equivalent value of over $90k Work with me on a solution that will net approximately $90k benefit to R&M. 3 months mortgage $3900 Rates, insurance etc$1300 3 months rent paid $4800 Cash$80,000 Total value: $90,000 NO WORRIES$(priceless)

12. Call Option Agreed purchase price of $367,000 within 2 years (+ extension 2yrs) I pay all outgoings (rates, insurance, bills maintenance etc) I pay rent of $1000/mth and option fee $300/mth (= mortgage) I can repair and add improvements to increase value I can assign the option to a third party (i.e. sell the house for a profit) Purchase price $367k Mortgage$287k Balance R&M$80k cash

13. Sale Price$480k conservative estimate Purchase price $367k as agreed Aquisition$12k legals & holding (mortgage, rent, outgoings) Sale$8klegal, marketing, staging Reno cost$25ktrades, materials etc Stamp duty$??? Commission$13k________________________________________________ Profit$55k My investment - $45k + sweat & time ROI: (net profit/investment) 55k/45k =122% Estimated figures (based on 3 month turnaround)

14. Sale Price$480k conservative estimate Purchase price $367k as agreed Aquisition$12k legals & holding (mortgage, rent, outgoings) Sale$8klegal, marketing, staging Reno cost$25ktrades, materials etc Stamp duty$0.00 Commission$13k________________________________________________ Profit$55k My investment - $45k + sweat & time Estimated figures (based on 3 month turnaround) ROI: (net profit/investment) 55k/45k =122%

19. stump

20. Task List Paint interior throughout Paint gutters outside Vinyl floors throughout – over existing tiles Restore kitchen – benchtop & cupboards Restore bathrooms – tiles, vanities & cupboards New showers frames Replace all electricals (lights & fans) Replace all plumbing (taps, spouts,showerheads) Replace toilet Epoxy coat garage floor Install front door Remove excess palm clumps Basic landscaping front & back Repair fences (pool & boundary) Build front entrance & back door deck Build front feature fence

21. Day 1 – Remove tree #1, leave tree #2 Easy, isn’t it?

22. Apparently literacy is not a prerequisite for arborists. Easy, isn’t it?

23. Day 7 – Shower hob comes loose…..  ! Termite workings found in bathroom & ensuite! $$$ Treatment & Barrier

35. Last minute stress Solicitor had never sold a “call option” at auction before Auctioneer suggested unusual paperwork could put bidders off At auction we could either: 1.I exercise the option (buy the house), then sell it to new buyer. This will require me to pay stamp duty  2.Assign (sell) option to new buyer and nominating them as purchaser exercising the option. Complex paperwork! Quick smart solution Change the paperwork to a JV. I have POA to effect the title transfer

36. Prior to auction day Market feedback $450k-$500k 2 registered bidders Reserve set at $480k

37. Neighbours come to the party!

38. Passed in at $450k

39. Listed on market for $493k Within 1 week we have a buyer at $490k Long settlement subject to sale of home

40. Sale Price$490k  $10k(+2.1%) Purchase price $367k - - - Acquisition/hold $19.3k  $7.3k(+60% extra holding) Sale$12.2k  $4.2k(+50% staging & legals) Reno cost$26.9k  $1.9k(+7.5%) Stamp duty$0- - - Commission$14k  $1.0k (+8%) GST refund$5.0k  $5.0k Profit$55.6k - - - My investment - $58.4k + sweat & time ROI: (net profit/investment) 55.6k/58.4k =95% Lessons learned – Priceless!! Actual figures (based on 6 month turn around)

41. Purchase/Sale When doing a “creative deal” discuss and plan whole process with solicitor & accountant Be sure to allow sufficient profit buffers and over estimate costs Factor in solicitors disbursements! Anything works as long as all parties agree. Multiple exits or opportunities to adapt to circumstance Re-evaluate local market a week or two prior to auction and allow for strategy changes Be present (or accessible) so you can manage sudden obstacles Renovation When adding value, don’t skimp on bathrooms/kitchen! Use pro’s where possible Hire cheap labour! If it works, don’t fix it Discuss strategy with local knowledgeable agent before planning Get as much as possible done at the same time to reduce holding time

42. R & M R & M and their family have settled in Gold Coast Kids in new school Have signed a contract to buy a 3 bed for $250k, using the proceeds from the sale of this one and use the house as security to their current loan (that I have been paying) They settle on the same day as we do!

43.  neil@deeporangedesign.com.au neil@thepropertysolutionsguy.com.au neil@buywithoutabank.com.au