How to buy multiple investment properties

Buying multiple investment properties with a buyer's agent

Perth Buyer's Agent Heath Bassett

Author

Buyer's agent and co-founder

Buying multiple investment properties with a buyer’s agent

G’day guys, Simon and Heath from You&Me Personalised Property Services. We are coming back to you to talk about more client wins. We love winning. One of our core values, we are persistent, and we operate with the utmost of integrity.

Buying with a buyer’s agent or a selling agent: good and bad experiences

And one thing that we are incredibly proud about with this client win is when people deal with a real estate agent, whether it be a buyer’s agent or selling agent, the stats show that they only ever deal with that agent once. And that’s based on not the fact that they are buying or selling a property once, it’s based on the experience. And it doesn’t leave them with a good experience.

Our high client retention

We’re really proud, really privileged, and really honoured to be able to say that when our clients use our services, they more or less become a client for life.

And this is a genuine recent example of a client that came back to us for the third time, in an 18-month period.

Buying their third investment property with our buyer’s agent services

So they had already bought two properties from us in the last 18 months, and they’ve just come back and secured their third purchase within an 18-month period, something we’re both really pleased about.

Buying an investment property

From the buyer’s brief to reality

Heath, you were able to put this one together? Lots of moving parts in this deal. Talk overrun through how you were able to get this one.

So we had a client brief set up in a cafe, a couple of coffees and a hot chocolate. And we put a client brief together under a deep dive session.

We went away. We searched a few suburbs because we weren’t 100% set on a particular suburb.

They wanted to see value for money. Did they?

So something we don’t normally do. We gave them a lot of different suburbs and a few different price points too.

They wanted to buy in one Perth suburb

Yes. But obviously knowing the client as much as we do, we knew that there was a particular suburb that we thought they might be drawn to more. Their daughter is there they’re only 15 minutes away that themselves.

Something I know they were comfortable with.

Comfort is a big factor. What we did was we searched, and I went to six home opens in that suburb. The clients come along.

With our clients, they can either have as much to do or as little as possible with the transaction.

This particular client loved being involved.

What we found out really quickly was that out of the six there were three that ticked boxes, majority boxes. Obviously, you’re not going to get all.

Comparing different properties

And what we found quickly was that the early 2000s-built homes that we were looking at were very closed off yet very sectioned off. So not open-plan living. Ian likes open land living he’s a bit of a gentle giant and three of those tick the boxes.

Now one of those properties we went to (it was the last one we went to) was being sold by the owner herself.

So what that tells me straight away is we already had leverage through our negotiating skills. Leverage off the fact that I’ve been in the real estate game for 14 years, and you’ve been in the game for 26 years.

Negotiating directly with the property seller

It was probably the first or the second time that the owner would have been selling a home.

So from little chats, she already had a home. They were going to move into this one. They decided for one reason or another because I think the majority of the reasons were the tenants in there weren’t a good experience. And we talk about experience, it wasn’t a good experience for them. They had to fix up a few things and they didn’t want to either rent their house out that they live in at the moment and they certainly didn’t want to re-rent this one out.

Getting information from the seller

So they had a decision to make and they made the decision that they were going to sell the investment off.

So and the other thing where I felt we had leverage was the fact that by selling it as a private owner, their exposure to the market was a lot less than other comparable properties. And the fact that they weren’t dealing with an agent cut out agent fees as well.

Selling a property without an agent

So I mean, the marketing wasn’t as good as what an agent would do generally. And you know, that’s why you get a professional.

  • The marketing wasn’t as good
  • The negotiating skills weren’t as good

We ascertained quickly so, it was: offers over $585,000. I had a chat with the owner and they were expecting very close to $600,000.

Now I was, I was going to say I, I didn’t find that that was out of reality or out of touch because the one next door, very similar property in the specs go the one we purchased: 698 square meters of land, corner block. 224 square meters internally.

Helping the buyer get the best price

The next-door neighbour, 600 and I think two square meters land and 234. So, ten square meters, bigger internally.

Over 100 square meters, smaller land where all the value is, and only ten square meters larger internally. Exactly. And when did that sell?

So that sold in December last year. Six months earlier? Yes. Six months earlier. The market’s got better. Yeah, it sold for $606,600.

So every day of the week that that property should have been selling for north of $605,000.

I was thinking somewhere in the $615,000 would be a reality.

$615,000 to $620,000 straight away, it would have been reality and then, other properties that were comparable.

Comparing similar properties

So we had an exact comparable property which the owner mentioned at the time, you know this property is, is for sale, it’s offers over $625,000. It’s a replica of my house internally. And she was right hundred per cent right, but I’m never going to tell her that.

So what I’ve done was started talking about how this other property is a bit newer, how it’s a bit bigger, how this and how that it’s in a better location.

So already doubt was planted in her mind.

The buyers have decided which property they want

But I knew after quick chats with Ian and Sue (our clients) that they really liked it. That was the number one preference of the six in the suburb.

So already we established that they wanted to be in the suburb. The daughter’s in the suburb already and they’re 15 minutes away.

The clients love the floor plan. They love the floor plan, open-plan living. The backyard space was deeper than the previous and the other big one.

And this is a huge one, as they were buying the home for the potential of doing a major renovation in like 5 to 10 years’ time. Now, the other home that was asking more than 625, it was five years older.

But the reality is in 5 to 10 years time, they’re both getting the same renovation.

The exact same renovation. Exactly. So they were getting not a budget buyer, but they were getting a discount.

So from the horse’s mouth, well, we’re not going to do anything to this property. So they weren’t looking to renovate. So we’re not looking for a property that’s already renovated because they didn’t want that.

But they wanted it liveable.

And it was fantastic. It was in its original condition. Great condition. Nothing wrong with it.

So, looking at it:

  • they know the comparable properties are asking over $625,000
  • next door, which was in a corner block
  • smaller land
  • sold for $606,600
  • we’re dealing with owners who are selling by themselves so they don’t have to worry about agent fees, which take out 2% to 3% depending on what agent you go for.

Negotiating the best price for the buyer

So immediately you’re saying value knowing that the house should be selling with a six at the front. They’re asking over $585,000 which is bloody really good, great point. Where did you get the deal done?

I spoke to Ian out of the front of the house. He said: “mate call her up on your way home, see what you can do”

So he didn’t give me commitment. But he said: “see we can do. I really like that property. It ticks the boxes”.

I went had a chat with the owner of the property and I said, listen, you know, it is our number one property of the day, but at what price?

She goes, Oh gosh, I don’t know. This is the first I’ve done this. I said, Well, throw me a number. She goes, Oh, I don’t know. I said, okay, what I’m going to do is I’m going to throw you a number. So I went in, that’s ridiculously low. I said, $555,000.

She goes: “No way!” I said, okay, well now it’s your turn.

She goes: “Oh, I’ve got to speak to my husband”.

I said: “we’ve got another two properties. We’re going to put an offer in. We need some sort of commitment. I need something to go back to my client”.

So she come back and said, Well, and this is how I found out where we really want close to that $600,000.

But if you get them to $585,000, we can do a deal. I said, don’t worry. I’ll have a chat with my buyer.

Deal done at $580,000!

Our clients come back and forth back and forth, back and forth. Long story short, we ended up getting the property $580,000 cash deal with a few clauses involved.

Just the standards:

  • building
  • past
  • gas
  • plumbing

And short settlement: 28 days settlement.

Another client won with our buyer’s agent services

Third purchase, just an awesome win. We know our clients have got at least 25 grand equity being conservative with probably up to 40 grand equity in that purchase. Their son is going to have a place to live in which by Ian’s accounts won’t be kept very well.

But it will be in perfect condition for them to renovate in five years.

Looking to buy or invest in property in Perth?

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See how we can help you. Create your own story.

Get in contact with us. Until then, happy investing.

Perth Buyer's Agent Heath Bassett

Property Buyer's Agent and Co-Founder at You&Me Personalised Property Services

Buy property in Perth and Brisbane with confidence.

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