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Real Deal

Real Deal. Ollie Hooper. About me. Corporate background - 10 years with multi-national. Auckland> Sydney> Gold Coast> London> Melbourne> Brisbane $100k + salary, car, expense accounts, travel junkets, low stress Decided it was not where I wanted to be in 10, 20, 30 years time.

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Real Deal

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  1. Real Deal Ollie Hooper

  2. About me • Corporate background - 10 years with multi-national. • Auckland> Sydney> Gold Coast> London> Melbourne> Brisbane • $100k + salary, car, expense accounts, travel junkets, low stress • Decided it was not where I wanted to be in 10, 20, 30 years time. • Started investing seriously 6 years ago Specializing in Vendor Finance • 3 xSubdivision & construction projects • Last 2 years full time investing. • 2010 became licensed mortgage broker (Money Quest Finance)because ofthe synergies and regulation within credit business. • 2011 re-branded to “the Vendor Finance Experts”. • I work with Buyers, Sellers, Investors & Landlords specialising in various forms of Vendor Finance transactions

  3. Real Deal:Multi-Strategy, Roller Coaster Ride Denver St NORLANE, VIC (2006)

  4. Phase 1: Back-to-Back Lease Acquisition 2006 On-Sell 2006 • Controlled in 2006 under an “Assumptive Option” from a tired landlord. (1 of 3) • Option Fee $3000 • Option Price $160k • Monthly Payment $890 • Lease-Option 2006 to new buyer • Option Fee $5000 • Option Price $185k • Monthly Payment $1213 $2000 Profit, plus $323 pcm cash flow

  5. No issues until late 2010 then ….. Late 2010 became clear the buyer was having personal "issues" but payments were still regular. Further investigation found house now included “house mates” and had been hammered! Negotiated with outgoing buyer to have house cleared of junk and handed back in "as-is" condition.

  6. "as is" condition...

  7. I had a problem ... House required $30k - $40k of work to bring it back into shape Potential sale price didn't warrant the investment or the time. Property was leaking cash each month What to do ....?

  8. My Plan …. Turn this problem into an opportunity for someone else!

  9. Re-Marketed the Property... Classified ad in local paper

  10. Captured enquiries Respondents to ad captured by a specific landing page and produced an outstanding result!

  11. Successful Buyer: “Mr Mechanic” & Wife Long terms renters 10 years + Self Employed1 x Minor credit issue Not enough deposit Needed time to get financials sorted Had access to “resources”

  12. Phase 2: Agreed Works & Terms • Terms: • Purchase property “as is” on an installment contract • $7000 cash paid up front • Move in & commence payments immediately • 6 Months to complete work • All works certified & insured • Deposit credit applied after agreed works completed in full • Refinance later in 2011

  13. 6 Months Later …..

  14. Phase 2: “Sweat Equity” + I.C. Acquisition 2006 On-Sell 2011 • Purchased under an “Assumptive Option” from a tired landlord. • Option Fee $3000 • Option Price $160k • Monthly Payment $890 By Installment Contract to “Mr. Mechanic” + Wife Purchase Price “as is” $207,000 Deposit prior to move in $7,000 Deposit Credit $25,400* Balance Owing $174,600 Monthly Payment $1457 Deal Summary:$7000 upfront profit cash No out of pocket expensesNo renno work at all on the property$567 pcm positive cash flow $14,600 cash on re-fi / cash out

  15. Thank you & Questions?

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