What Residential Property Investment Looks Like For Us:
Buying Property.
We take pride in working with a variety of agents, directly with home owners and other professional services to source properties for purchasing. We use a formula based on our intent for that property, which tells us how much we should purchase a property for.
As they say, you make money on the buy, so being the best buyers is part of our mission statement. Being the best buyers means we are fair, easy to deal with, ethical and well funded. This part of our company will always be a priority and is the key to our repeat business and success.
Holding Property.
These are the properties we have purchased with the intent to hold them as rental properties with regular income from tenants. These are strategic purchases that must meet our strict holding criteria, they need to have equity from day one (or the ability to create equity through renovations/repairs etc). The other criteria required is the properties must return above 8%, giving us the cash flow needed to keep our bank manager happy and allow us to continue buying more properties to hold.
Trading Property.
These are the properties we purchase with the intent of on-selling them with minimal work done. These are usually purchased with a particular person in mind and can be in any condition at the time of purchase. Typically a longer settlement is required to give us the time to sell to the new purchaser who will settle the same way we do, that way we can collect the profit on settlement day without ever having to put any money into the purchase.
Flipping Property.
These are the properties we purchase with the intent to do renovations and resell them in better condition for a profit. We do this for two reasons, 1- larger lump sums of cash supplement our rental income giving better cash flow. 2 - often these properties either have equity from day one or the ability to create equity through repairs and renovation but do not meet our yield criteria to hold.