Third Time Lucky! – A Developer Case Study
In February 2020, Property Wizards was working with a client who wanted to buy, build and invest in a new child-care centre. With extensive research, we found our client two ideal, adjacent properties in Duncraig. This was the perfect because:
1. The location has brilliant visibility
2. Situated on a corner lot with side road access
3. With high volume passing traffic
4. Close to the train and freeway to get into work
With our client’s best interest in mind, Property Wizards structured a deal including land purchase and construction. Using Property Wizards’ due diligence, we presented an extensive 69-page document to ensure the property would be right for the purpose.
WHEN THE PANDEMIC HIT
In an unexpected turn of events, a pandemic hit the world in a way no one could have prepared us for. And because of the uncertainty brought by COVID-19, the initial deal was terminated and it seemed that all our hard work was in vain.
Fortunately, in June of 2020, the situation in Perth got under control and confidence in the future became positive and hopeful. So, we submitted a second offer for the same property. Our risk-averse client’s conditions however were less favourable and the properties were sold to a developer.
SUCCEEDING AGAINST ALL ODDS
We knew that the property we found in Duncraig ticked all the right boxes and was the best suited for our client’s goals. We persisted, liaising with the developer through a helpful third party, and prepared a third offer. Property Wizards negotiated an attractive structure where the developer stayed involved and both parties were positive about possible similar deals in the future.
Property Wizards ensured that the developer and builder assume ALL risks, including development approval and cost overrun risk.
Because of our good negotiation skills and strong relationships, we also gained favourable lease terms with the tenant agreeing to conditions that benefited our client greatly.
Finally, Property Wizards succeeded in the difficult negotiations with the developer, against a better offer, through perseverance, professionalism and structuring a deal where all parties were winners. Final contracts were signed 20 November 2020 – 10 months after the first purchase. Our clients were overjoyed and extremely satisfied with how our deal went. Here is what they have to say:
“Third time lucky! Thank you for your persistence with Duncraig and succeeding against all odds. We are delighted you secured the price we required, the improved lease terms, our preferred builder and removed all our risk.” – Managing Director of client company
“Congratulations on securing this deal for your client. We sincerely appreciated
working with you on this challenging deal, which resulted in great outcomes for both parties. You gained our trust with your expertise and professionalism and we look forward to working with you on more deals in the future.” – Managing Director of developer company
If you want to learn more about property investment strategies, or you’d like to clarify your investment strategy and goals, why not complete our Getting Started form to get the ball rolling.
We can help you unlock the potential of the real estate market for your family through savvy property selection, negotiation on price and conditions, development expertise and the magic of robust research.
Regardless of market conditions, our research, local knowledge, and access to silent sales means we find the hidden gems that can outperform the market in capital growth and rental returns for long term wealth creation.
Importantly, we’re able to provide property investors and homebuyers with the same level of representation that property sellers have benefited from for years.
Your property portfolio is your path to financial freedom and the lifestyle you’ve been longing for.
Property Wizards takes away the stress of buying a property and saves you money at the same time. We can show you how, or you can sit back and let us do all the hard work for you.