[THE VAULT] KICK ASS UNITS NATHAN FOOLISHLY SAID NO TO!
In this complex of units and townhouses, some investors have said yes to the opportunity in front of them, and others have said no.
Which do you think are the happy ones today?
THE WINNERS WERE THE ONES WHO SAID YES
We have purchased a few of these properties for clients over the last few years.
One was bought for $180,000. Another was purchased for $265,000.
Today, the properties are worth between $370,000 and $390,000.
Rented at around $330 per week, the units have had a good cash flow from the date of purchase.
WHY WOULD ANYONE SAY NO?
Although the numbers have proved to stack up quite nicely, the appearance of these apartments is … well, let’s just say, they aren’t the most attractive of dwellings.
A not so pretty exterior can turn off many a buyer – even though the property has all the fundamentals of a kick-ass foundation property.
IT AIN’T SEXY – BUT IT SURE IS FUNDAMENTAL
Fabulous foundation properties, the units in this complex have a good cash flow, are located in a good growth area and were purchased below market value.
Now that’s some gooood investing.
But, you could be forgiven for saying no…
A YOUNGER AND LESS WISE NATHAN TURNED DOWN THESE APARTMENTS
Yep – even Nathan himself said no to buying units from this complex. But, it wasn’t because the units weren’t a good investment. He turned them down because, at the time, he was a new investor and didn’t have the wisdom of hindsight at his fore.
Nowadays, he knows that units with all the fundamentals in place, such as these, do go up in value – even if they look like shit.
So, there you go – another perfect example of how the numbers are more important than your emotional response.
Have you said no to a deal that soon proved to be a good one? Please share your experiences in the comments section below.