All Forum Posts by: James Scholz

I am working on my first flip which is going a little side ways but offering a lot of experience. My local market is favouring the brrrrrrrrrrr method however I wish to get some money behind me before I join in on the craze.

Im always happy to answer any questions regarding my local market, amazing fresh food or why the difference in pricing on one side of the street is NZD $30,000 more than the other.

Hawkes bay seems like a great place for deals for sure! I'm from Auckland but I sometimes look at Hawkes Bay and cry at the great prices...

What are the details around the flip? How'd you find it, cost it out etc?

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I'd say 95% of properties are listed on trademe. Its a good place to look, but also means everyone else is looking there too. So if you can find a property before its listed on there, or private sales that aren't listed there is less competition.

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Originally posted by @Frank Wong:

Every time I read something about turn keys there seems to always be a debate on turn keys not being great for investors. I don't think that is correct. On one hand, I get the argument that buying a turn key does not allow you to do BRRR. But what if the investor is not looking for that?

The investor can be looking for a rental property that can give them a monthly income right away and doesn't have to wait a few months for rehab. The investor also doesn't have the "time" to vet all the contractors, look for finishes, deal with delays, and get it all done within their budget. Maybe the investor is smart to understand that the best use of their time is to do what makes them the most amount of money while allowing the experts in the field to do the labor-intensive work to complete a rehab.

In Jeff's case, they are rehabbing multiple properties. They have economies of scale and will be more efficient. They are probably getting things done cheaper than a new investor. There is also no free lunch in this world. Why can't a turn key operator turn a profit? You are paying them to save yourself time.

Yea its just down to the individuals strategy. For some getting a smaller piece of the profit and spending much less time is better, for others putting in a lot of work to rehab and getting more profit is better. To each his own

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Originally posted by @Account Closed:

kia ora all. very excited to have found this group.. have a couple of questions i hope yal can help me with. do you need a title company in auckland to close deals or just use your lawyer? second questions is the anyone yous would recommend.? thank yous in advance

We just use our lawyer - Wells & Co. We haven't done any big deals but they've helped us spot a few tricky conditions on properties we had under contract.

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Hi Dale - mostly west Auckland, just because thats where I am and thus know the area well.

Though not too fussed as long as the numbers make sense.

I've had a couple places under contract that fell through for various reasons, so have come close but haven't fully bit the bullet yet. But its only a matter of time!

I've also looked a little bit in Hamilton - because its much more affordable, and you can get good rent if its in the right place. So that would definitely be a good place to look if you can get to know the areas well.

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@Dale Viljoen - I'm in Auckland as well. And the numbers on Bigger Pockets basically never work here. The yield is too low and the price is too high. The only way I think is even possible is through BRRRR (talked a lot about on here).

Thats what I'm trying to do at the moment, but the market is very challenging.

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Hi @Carolyn Guertin - Small towns tend to have a lot of very small pocked of good vs bad value (Even street to street the quality of tenants will change). You will get a much better yield in smaller towns (around 8%) but very little capital gains. Whereas in Auckland you'll probably only get 2.5% yield but the market has been going crazy the last 3 or 4 years. So depends what your strategy is.

If you're going for a small town I recommend talking to a few property management companies in those towns to get a feel for which streets are worth investing in, and look at historical values etc.

Maintenance and rehab is expensive in NZ, so if there is any work to be done get quotes before you buy. And always do a meth test!

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Hi team,

Auckland based. Interested in how people can invest in the US from here. Must take a lot of work buying without seeing the properties! Anyone done it successfully and willing to share their method?

Btw @Azam Khan - I also use GRA for small business and property stuff and they're great.
They sometimes do free seminars on property and you can get free consultations if you go.

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Welcome @Takashi Sawada! I'm based in Auckland myself.
What is your strategy in NZ? (What yield and property type are you looking for etc)

I'm looking in similar areas, looking for renovate + hold opportunities.

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Yea I'm trying to focus on cashflow postiive currently. But its hard to find one that works out!

(There was actually a relevant article posted recently: http://www.biggerpockets.com/renewsblog/2015/03/03/why-you-cant-make-money-on-30000-houses/ )

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All Forum Posts by: James Scholz

James Scholz has started 3 posts and replied 33 times.

Post: Real Estate in New Zealand

Post: Hawkes Bay, New Zealand First Flip

Post: Buying Second Turnkey

Post: CALLING ALL NEW ZEALAND BASED INVESTORS!

Post: Paying off a mortgage in less then 10 years?

Post: Paying off a mortgage in less then 10 years?

Post: Buying Realestate in Wellington New Zealand

Post: CALLING ALL NEW ZEALAND BASED INVESTORS!

Post: New member from Auckland, New Zealand

Post: New member