Graham is a retiree who had an investment property. When we met Graham, he told us that he had just instructed the Real Estate Agent, who sold him this property 7 years ago to put his house back on the market for 380,000, as is. He advised us that he was in financial trouble and had an investment property not providing enough Cash flow to sustain him. He wanted cash quickly and relief from stress of maintaining and managing this investment property. It was rented out to tenants who totally destroyed the property with dogs, filth, cosmetic and structural damage and lack of maintenance. He purchased the property for $360,000.
We assessed the property by doing detailed analysis like, CMA and MPA to determine the detailed Scope of Works. The damage was to the extent that we believed it had depreciated in value and would not sell very quickly in the current state it was in and the current market for more than $330,000. The average time houses were taking to sell in the area was 171 days. We determined that by spending $30,000 we should fetch $420,000 and move the property within 90 days.
In our negotiations we explained that we would need the house empty in order to achieve an excellent result, due to the extensive damage in every room requiring access to repair. We also identified that Graham did not have the cash to service this make-over, so we arranged an agreement whereby we would pay for all the expenses up front and Graham would reimburse us on settlement. The numbers “stacked up”, so there was little risk. He was so relieved to know that the lack of cash flow did not block the outcome from being achieved.
The tenants moved out and we went to work. The project took 3 weeks. Our expert team renovated to suit a specific target market.“We have built a great relationship with the Real Estate Agent we had selected, before and during, the renovation process. “Working with her confirmed that our plan to style and renovate for the specific target market, would be effective and move the property quickly.” The Property Styling finished it off nicely and the house was sold within 2 weeks for $430,000, within 90 days. Graham had his cash in his bank account, ready to move forward with his life. The timeline was met.
1. Gave painters, cabinet makers, plumbers, electricians, carpet layers and landscapers and more… jobs.
2. Graham made $60,000 more than expected in the least amount of time.
3. PSA received payment for their services and costs rendered.
4. Conveyancer and Real Estate Agent benefited from this transaction.
5. The new Owners moved into a beautiful home.
MYP aims to assist and create win-win outcomes for everyone, or decline going ahead with the transaction.