"Unfortunately when vendors are in that distressed state, there can be real knee-jerk reactions at times…" Mark got his start in the property industry after buying his principal place of residence for him and his family. Through this process, he got a crash course in how the property market operates and the leverage that could be created through owning an asset. After this, Mark started a couple of companies, one being Over And Above Property Partners. With this firm, Mark assists vendors - in a range of circumstances - achieve the maximum value from their asset in the shortest possible time frame. They are experts in understanding how to increase a property's value, and also who can help in that endeavour. Mark runs through a case study of a project in the Melbourne suburb of Glen Waverley. He had received a call while on another job in Adelaide, and flew home to see whether he would be able to help the vendor in need. His wife had recently died, and with debt and a house in disarray, there was some work to be done to get it up to a saleable quality. The owner had previously tried to sell it, but agents did not see much hope for it. It was in desperate need of a clean, and there were animals living inside. The vendor's mindset was quite distressed. Such states often lead to knee-jerk reactions, so they set about determining what he wanted from the property as well as what he needed to happen. The expectations of the vendor did not much the reality of his situation initially. To bring the vendor's expectations back to reality, they engaged a number of appraisers to show that the property was not worth as much as he thought at that time. This highlighted everything they needed to do to get the desired outcome. The next step was to work out a formalised partnership agreement. They had to look at solving the problems with the property, principally the funeral home debt, and the son living in the house. Mark solved the issue with the debt, letting the funeral director know of the situation and arranging a payment timeline. Then they found a new home for the son and arranged for him to move there. Once that was done, they got a better idea about what improvements they could make to the house to increase its value. They consulted structural engineers, and eventually added another bathroom and a study to the place. They also opened up three walls to give a huge space for the kitchen and dining area. Mark's tips for listeners is to decide upon and be sure about the design elements and everything that will be needed in the improvements/renovations process. This will give a more precise idea about budget, project timeframe, and finished look. He also recommends to engage agents who are already selling similar properties in those areas and ask important questions relating to who is buying, who is selling, who is renovating, and what's going on in the local market. Mark says that so much of what he does is all about trust. He needs to establish trust in himself with the vendor. Then he need to trust in the advice and information coming from the agents. And finally he needs to trust the tradesmen he works with on the project. In the end Mark finished the project on time and within budget. The property thus returned more for the vendor than the previous appraisals stated would be possible. The vendor was overawed with the result. About Sharon's guest, Mark Heritage… Getting his start in manufacturing, Mark discovered the potential of property investing after purchasing his first home. He made the shift four years ago and started his own investment funding business, YouGrow Investments. He then trained his focus more solely onto property. His new business, Over and Above Property Partners, assists vendors, investors, and agents in maximising the potential of their listing. About your host, Sharon Taylor… Sharon heads up the research division at Performance Property Advisory. She is responsible for the aggregation of economic and property data sources, as well as deep analysis of the data to provide quarterly reports on each capital city of Australia. These reports identify between 5 and 8 submarkets in each capital city, and provide an opinion as to the short term performance of each submarket. This information is vital for clients to maximise the performance of existing assets, and also for selection of new blue-chip investment locations. 'The Property Pineapple' is one of three segments you will hear on the Performance Property Data podcast. Released every four weeks, and hosted by Sharon Taylor (Research Analyst - Performance Property Advisory), the show presents listeners with stories from real investors, discussing their wins and admitting their losses. 'Property Insiders' are also released every four weeks and are conversations between David McMillan (Director Acquisitions - Performance Property Advisory) and industry leaders offering knowledge and expertise. And 'Performance Insights' are released every Wednesday and Friday, giving you technical information and the lowdown on key property markets around Australia. For access to exclusive insights and offers, become a member of the community at www.performancedata.com.au
