Forum Replies Created
Hi
I agree that brokers/finaciers are some of the best sources to find money partners, as they may have clients with available equity/cash looking for deals.
Good Luck!
Brendon
Onyx FinanceHi G1
What would you like to know. Have you got a splitter block there?
Brendon
Onyx FinanceYes, and get some independant rental appraisals too as you can be pretty confidant the rent they pay you will be far more than the market rent.
So in a nutshell, the potential risk you’re facing is that you have an overvalued property in 2 years and the rent will drop dramatically when you have to rent it on the open market.
Good Luck!
Brendon
Acute Mortgage Reductions
[email protected]Originally posted by Michael R:I am not referring to your subdivision, rather the importance of using qualified legal counsel in general before executing any purchase agreement.
Absolutely, paying for a top lawyer is essential. Like most things in life you get what you pay for, so it’s always worth paying top dollar for the best.
In our situation though, it wouldn’t have made much difference. In a hot market, you take the contract the developer’s lawyers draw up or you buy elsewhere because if you don’t buy it, someone else will.
Brendon
Acute Mortgage Reductions
“Better Finance for More Homes Sooner”Hi Michael
Yes in the ideal world that would be great. The problem is no matter how good your lawyer is, there is no guarentee you will win the case so it is a punt, and you could potentially waste large amounts on legal bills and still lose.
There were many other buyers in this subdivision who attempted to sue the developer and all pulled out after a few months as the legal bills were mounting.
Brendon
Acute Mortgage Reductions
“Better Finance for More Homes Sooner”Michael / Derek
This has actually happened to me. We found out too late that our lawyer was not good enough, and the developer did indeed slow down the earthworks on the land subdivision to pass the sunset clause date.
We purchased 10 lots off the plan and they increased in value 30k each in that time.
There doesn’t seem to be much you can do though in though in those situations, as in a hot market (such as last year) if you try make the conditions on the contract in your favour for this type of situation, the developer will just sell to someone else.
As for taking the developer to court, it sounds good in theory, but we found the legal bills and time wasted would not be worth the exercise.
The developer was also a prominent Brisbane lawyer who I would love to name here but I would probably get sued so no chance of that.
On the other side of the coin, if values dropped I’m sure we all wouldn’t hestitate to use the sunset clause to get out of the purchase.
Cheers
Brendon
Acute Mortgage Reductions
“Better Finance for More Homes Sooner”Dave
If you want an honest agent’s opinion(is there such a thing?) of Russell Island speak to Tetka Rhu at Raine & Horne Bay islands.
Not sure of the no. but an old friend of the family who has been over there for years and knows the islands inside and out.
Best thing to do is take a trip up and speak to some of the locals who (being on a nice quiet island) love to tell visitors about the bad areas and where to steer clear of.
Good Luck!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi B37
I hav not dealt with them but have had a look at their designs before and wasn’t impressed. They are certainly at the cheaper end of the market for building homes but I found their deisgns lacked any open-plan areas and were too compartamentalised (is that spelt right??).
Have you checked that they will build out in your area as I would highly doubt it.
regards
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Kay
Just skimmed over the article, but the point you highlighted is significant.
A senior lender (usually a bank) wouldn’t give a rat’s ass about selling the site for maximum dollar to leave something in for the 2nd mortgage investors.
Their concern is to recover the outstanding debt, so as a 2nd mortgage lender/investor you are entirely at the mercy of what another developer is willing to pay for the site, which may not be enough to recover your investment.
As with most investments, the risk lies in your level of experience/knowledge in analysing deals.
Being able to verify the figures in the feasibility study is paramount, which is why I believe these types of investments are too risky for inexperienced investors unless you have a very good lawyer to help you through.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Gap Finance in Sydney can do 5% per month.
If this is your last option, offer the developer 1% per month. From their position, they sell their property, and get some cashflow for a period after.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi BJMACA
Have you tried approaching the developer first? Ask them to leave 15% in the property until your cash comes through.
Depending on where the property is, developers are generally not as quick to can the deal at the moment and onsell the property.
Short term lending can be expensive, and Yorker’s offer of 30% is not bad compared to some companies out there. I came across a company on the Gold Coast that charged 8% per month!
Good Luck!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Robert
First of all, I would recommend changing to Interest only. It will initially ease your cashflow and P&I is pointless in my opinion if you are looking to invest again in the future.
As for costs, don’t forget to budget for Council rates, landlords and building insurance (which I hope you have already, if not, GET SOME!), maintenance, and bank fees if you have an ordinary loan from a bank, and managers fees.
Hope this helps.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Yeah got so cold the other night (14 degrees) I had to sleep with 2 blankets and again my beanie!
The weather is terrible here in QLD!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]It’s b….y freezing up here. Was 21 degrees yesterday! Had to put my beanie on!
I bet you’re only coming up for the glorious amber XXXX nectar Gatsby? NOT! Still tastes like cat’s p..s every weekend!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi J
Just make sure you get a quote on the bank’s legal costs as in some cases it will be extra to review the trust deeds.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Nikola
And many lenders will take permanent part-time into account.Casual may be a little more difficult.
Have you thought about renting out the property initially, as then you can use the rental income to increase your servicibility?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Thanks Karl
Do you find it a pain in the ass to text to make a call though?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Originally posted by DD:Great news guys the Wealth creator magazine has monthly meetings in brizzy one month, gold coast the next for the networking and “lets get inspired” group amongst us. They meet on a saturday morning once a month with a millionaire speaker each month.
not sure of the web but they are a cool group. I have just moved to Coffs and am not looking forward to the 3 1/2 hour drive north for the meetings.
Hi DD
Went last month to their launch and I can confirm that the setup was excellent, very well organised, and great for business owners to network with similar minded people.
You must be dedicated to be driving 3 1/2 hours to it though, better make a weekend of it as you said with some footy!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Originally posted by MJT:Hi Guys – picked up a business card in a Brisbane Coffee club recently.
Springwood Coffee Club 7:15am – 8:15am
or ph 0407030518 for details.I haven’t been to one – I live in Boyne Island – I just thought it was interesting. It looks as though its more of a samll business owners networking sort of meeting. Still might be good to check out.
Matt[medieval]
#@$
Hi Matt
Could also be a ‘Swingers’ club too? The Wealth Creator club as DD mentioned is excellent for networking.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Alright guys I’ll take more inititative.
What i would also like to do is setup a regular meeting for games of cashflow 101.
I realise there are some clubs around but apon contacting them, I haven’t recieved a reply.
If I organise a time and place how many would be interested? I find groups of 4 are best to keep the game flowing.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]
