Attract Properties uses its’ own funding to fix up trashed properties very quickly thereby achieving fast sales and significantly increased property values.
Agents that already work with Attract Properties enjoy our professionalism and transparency; they trust our system and love that we can do this in such a short time-frame and that they can realise their commission on a much higher sell price with a property that is now very easy to sell.
Even though it is a used and abused cliche’, we are proud to stand behind the fact that we achieve a win-win-win every time. That’s right, 100% of the time. That’s because of our system and all of the safeguards and contingencies that are built in. If the feasibility process says it’s a no-go situation, we simply don’t take the project on.
Whether the property is trashed or not, in the case of a distressed property situation where the property owner cannot financially salvage the situation and the property is going to be repossessed, we bring an extra win to the table (4 x WINS in Total). Let me break it down here:
WIN #1 – Firstly we negotiate a purchase price with the Agent on behalf of the distressed property owner(s) that will cover all property associated outstanding bills, rates etc. The deal is drawn up by the relevant solicitors to protect all parties accordingly. In many cases the property owner(s) walk away with enough cash for a new start whereas if the bank repossesses, they do not get a cent back and are often left with outstanding debts. We then take over negotiations with the bank with an authorised power of attorney (Banks/Lenders love what we do too) and they provide the extension we need to fix/renovate the property with time for the Agent to go to market & sell (typically 90 – 120 days).
In summary, Win #1 is for the distressed property owner(s) who would otherwise have their property repossessed by the bank leaving them with no return and often retain outstanding property related debt (aka up the creek without a paddle).
WIN #2 – When we renovate a property, we use a system and formula that specifically targets the work and design required to make the property better than new and presented in such a way that makes it irresistible to prospective buyers. This is a combination of quality fixtures and fittings together with a colour scheme that is both durable and ageless. Our landscaping and exterior space design is always kept simple yet very effective.
This is all achieved in 4-6 weeks and marketing is usually started early in the piece when it starts taking place. The finished product and quality staging in our experience typically gets a better than market sales price. This means a much better commission for Agents.
In summary, an old and tired looking or damaged property can struggle to sell when buyers have better options within the same market price ranges. With our renovation treatment our properties ARE the better option for buyers and they will often compete to purchase the property. This equates to an easy sale for Agents and a commission on a very healthy sale price.
WIN #3 – When a bank or lender gets to the point where there is no option but to repossess a property, a lengthy and costly exercise begins. These financial institutions are not in the business of trading property, they are in the business of lending money and property is simply the ‘safety net’, most commonly known as the ‘security’ against the loan.
Typically for a property in the $350K market value range will cost the lender $60K+ to repossess, minimal fix up and re-sell. Depending on the equity in the property, often this leaves the lender short of what’s still owed on the property, let alone the lost interest over the remaining term of the loan.
When we come along and work our magic, the lender is more than happy to provide us the extension we need because they know that what we do, at our own expense mind you, will literally save them from the expensive repossession process and get them the full balance of what is owed in a much shorter time period.
In summary, a financial institution who is in the business of lending money would much rather have Attract Properties spend the time and money to renovate a property destined for repossession and get all of what is owed to them than go through the costly and lengthy process of repossessing and selling a property. That’s a win in their books every time.
WIN #4 – What we love most here at Attract Properties is when we can achieve all of the above outcomes for everyone. Everyone is happy…… well in all honesty no property owner is happy with the prospect of losing their investment property or worse, their own home. We do all we can to make the situation the best it can be given the circumstances, and certainly make the financial situation better for them than what repossession would leave them with.
We also have excellent referrals to specialised counsellors in our greater Brisbane Region if the need is evident and embraced. Frankly, it’s tough so we do our best to give a glimmer of hope for a fresh start.
We also focus on providing a new family with a property that is in better than new condition, completely practical and functional with nothing to do but move in. We create our own value by improving the property using our own resources which is the only way we also make a profit for our efforts. At the end of the day, this is what makes all of the above possible.
In summary, all parties concerned in an Attract Properties style transaction are in a much better position than they would have been if the distressed property had gone through the repossession process.