Forum Replies Created
hi all
I would like to explain one very simple answer to your question
and its a question that most companies around the world and for that mater most companies wishing to invest in chian have asked and they don’t get a very good answer howdo you invest in china.
and for me it very simple and will but it in a western view point
you don’t, because if you do you will lose your money has many before you,
you jv or join with a chinese investment group many companies have tried to crack the chinese market and have lost lots of money,you can’t crack a market unless you can understand it.I am investing in china but I am investing via equity( you cant steal equity or if anything its alot harder nor can you get paid under the table with equity either).
china is not any form of a western country and to deal there you need to make sure that your investment is secure and this is very difficult to do I would like a section on investing in china because its a market that is very misunderstood but sorry I don’t have the time to keep contributing to it.
I have a time line that requires my time.
I will post here as we go but maybe a overseas section will be formed at some stage.
hope you all well.here to help
contact me [email protected]hi all
interesting post.
not many have said they have gone broke and come back this is very interesting to me as most very successfull people have been broke or near to it.
you only know the value of money when you don’t have it and then when you have been to the bottom of the barrell you know you are not going to level again and yes I have been there and I am a little higher on the investment ladder
but it also gives me that little edge when doing a negotiation.
for me I have been cleaned out three times but it has given me alot more knowledge on liquidatores, administrators and there powers
I remember a very good saying that the strongest rose is the one that fights for sunlight and have found this to be very true.
its not how many times you get knocked down, its how many times you get up or from rocky its not how hard they hit you but you get up and hit them harder these are all very true.
your post is have people been wiped out ?
simple yeshave they come back ?
yes
are they stronger ?
yes
not sure of the 30 30 challenge as I don’t rely on any booksas for the 1000 debt not sure
try 10,000,000 debt
debt is not a bad thing as long as you have a structure that covers the debt its a very different mind set(and I don’t sell books)here to help
contact me [email protected]hi all
most caveat lending does not go over 80% lvr of the property that you are lending against and is a second or third registered mortgage.
there are alot a foot in this market and the person wanting the funds must go thru a broker in nsw now to my understanding.
it is not the case that the person can’t get funding from a bank or a lender via the normal avenue its that the cost and turn around in short term is alot quicker and if you need to fill a short fall for a short amount of time then is does meet a market requirement.
caveatlending.com can give you a bit of an idea of what it used for.
it is not a market that I would recommend to get involved in as the risk can be high it depends what you are investing into.
example
land value/ purchase 7 mil
grossrealisation land value ( or portion of the grossrealisation loan to cover the land) is 9 mil.
normal lending will only ever give you 5.6 mil so you need 1.4 mil.
now if you loc a separate property for the 1.4 mil you have the money to settle the land but then the grosslend gives you back the 1.4 mil and you cant put it back into the separate property loan or you get hit for penalties.
so you short term the 1.4 for 3 months at 3% you pay 9% for the 3 months the gross lend pays back the 1.4 cost 126k and this is charged to the project as a cost and the second property is left as it was.
this is the way we use caveatlending and is very popular.
so if you have lined up the the gross lend thru a major and you know you are getting paid out not sure of the risk levels.
the other form of it is short term mezz funding.
basically the same just you caveat lend as the mezz but for a set amount of time in which case the mezz or the clients funds come on line.
each and everyone is very different.
I have seen caveatlending down to 1.5% per month if on a long lend and 6 months is a long lend.
there are alot of solicitors that look for this funding for there clients.
hope this helpshere to help
contact me [email protected]hi gecko
tax laws have and are changing and I would recommend henson liang you can email him thru ashfield partners sydney.
he runs the gpfund out of china and has a chinese real estate base also.
I would be very wary about direct investing in china and its only for the funds for me.
I have a couple projects that are going in there but they are unlisted trust so basically funds and jv not direct investing.
I hope this helps I know of the site you mention but have not done anything thru them.
there are a couple of unlisted private trusts that already invest in china. and the bank of china or austrade can help who they are.
my .002here to help
contact me [email protected]hi salacious
not sure wht type of chinese investing you are looking at but bank of china here can help with accounts over there.
my next project is china but running the investment from here,
not an easy task.
if need be by all means email me at [email protected] with your questions and will see how I can help.
china is a every big market and not something to have a go at lightly.here to help
contact me [email protected]hi all
just a quick note.
dannads its not uncommon to cash up and get ready for a movement I am doing the same at the moment myself but for a very different reason as I want to change a unlisted trust into a listed trust and that takes cash.
the wa market still has more time to go for me and will still increase there are rumblings in china and if there commodities come on line then you may and will see a correction if thats right I would lend on the equities you have and loc the loans.
I hope my view of the sydney market is right and that it will start to move mid 2007 and flow from there
I will let you know when it happens but we are looking at a rental auction for 5 of my units and bidders will be bidding to rent the units.
just organising at the moment wouldn’t today tonight love thats as a lead story.
not bid to buy but bid to live.
when you are in the highest growth areas like wa you need to look at leveraging off that growth so buy 1 ip sell and buy another is not leveraging yes you make money which is good but the real money come from leveraging and is the old rock and fulcrum you learnt in maths to lift the boulder you need to arrange the rock at the front and use alot less effort using thre fulcrum the same with leverageing you are using one ip at the front and less effort to generate income and by increasing the number of ips you are increasing the size of the rock so less effort each time.
by buy and sell you are just changing the rock and its not growing in size so the work load is the same.
but this is not the post for that.
.here to help
contact me [email protected]hi L.A Aussie
not on this post but my view is that you should start with a structure not start building half way thru.
if your accountant is telling you that you should by in your own name for tax reasons I would have a chat with another accountant.
ppor are ok in your name but ip’s arn’t and bepending on the structure you build buying i your own name is simple not the best option
simple yes but you can do alot better with a structure.
and I’m not an accountant.
you need to get advice and it not just stamp duty that ou need to look at when in your own name its also capital gains.
if its in your own name you have no where to move to move that capital gain or loss.
remember just because someone has a certificate doesn’t mean they know what they are doing
so get a second opinion it will be well worth it.
my .002here to help
contact me [email protected]hi all
just thought I’d find out did your year go well.
mine did
and did meet my target which for me is great.
I have set a higher target next year and this one is about 2.5 time this one so will see if I get up that hill and a minor mountain it is.
I will have a new website very soon name already organised and is part of the mountain.
I set goals that are achievable but not easy to meet and require the assistance of others for me to get there.
not an easy year for developers and investors in sydney but depending how you swim in can be very profitable.
we are heading for a very brave new world as they say and the asia rim and the islands around us are very good areas to look at.
make sure you have your core business in place and then have alook.
got two soaps out of the way this year and have 2 lined up for next year already and one may still make for this year if I can get it ovcer the line.
hope you all do well and that you have met your goalshere to help
contact me [email protected]hi The Contrarian
unlocking equity is not as simple as it may seem and is more of a structure and a way of doing it for me i posted sitloti on somersoft maybe some one here can add the link and it a way of unlocking equity.
you do need to set the structure up from the start of investing and to unlock your parents equity is not some thing I would try to do over a board.
dare_to_dream.
understanding loe or sitloti these are ideas that people use for there goals and should be taken as information only and to get away from cost you do need to have a balanced porfolio and not just on class ie resi property.
when setting up your structure you need to set it up to take in pension and other costs and need to be set up by a professional not a board.here to help
contact me [email protected]hi Mikey P
the china market is not slowing and won’t a while yet there is still along way to go and is a market that I am looking at investing in.
its has not alot to do with the 2008 games its more to do with pulling in and holding world currencies and having a very big bank account and using that to exploit minerals and commodities in that country.
currently china requires alot of every thing but this will not always be the case as there own mining and commodities come on line.
I have not seen a site that has a page with investing in asia not just china.
it is my next cab of the rank.
I hope to be taking a few Australian investors along for the ride.
I will mention it when the website is launched just not at this stage.
china is a very big market and a very profitable one and this will be only for sophisticated investors
who understand how to invest in different markets.
and is not for the faint hearted.
and will be in the early 2007.
there are lots of places to invest all over the world and this is not any form of advertising as there are places here that perform well this is more forthe people that wish to invest in things outside the 3br in dossville as dazzling calls them.
and is not restricted to property.
not sure about investing on mining towns but I am interested in investing in mining areas before they become mining towns controlling the land before the mines open and then supplying the housing that the miners require and in large numbers.
and getting the land for free on a 99 year lease at a pepperacorn rent.
and using low cost labour to construct.
but I agree to get in early as its the only way to winhere to help
contact me [email protected]hi speight
I know alot of people in fiji still and have dealings with baywest electrical in suva so there is a good chance that yes I have met your father last time I was there I was having a drink with what I call the grand father of fiji and was the best priminister fiji has had until mr rambuka took him out of office and I had a drink with him 2 days after he was removed and that was the last time I was on fiji soil.
I was one of the only white people that went to the indian festival/fair in Sigatoka invited by the indian community and have done alot of work with austrade for the islands.
I am consentrating on the other island north of fiji current vanuatu and find that it will be similar to fiji its a just a bit behind in development and I think it has alot going for it.
I wouldn’t invest in gated communities and especially in islands communities as I don’t see them as joining the island community and to invest in an island you do need to join that community.
I think that alot of people try to bring there countries traditions or views to another community and mask this over what is there.
it reminds me of a very good example of a rose
a person bought a rose and took it to afriend how said the rose is beautiful but it has to many leaves so the cut of the leaves.
then he took it to another peson who said the same bt it has to many thorns so they removed the thorns.
then the next how said the stem was to long so they cut off the stem.
then the next person said you only have a rose head lets throw it away and heres is a new rose not as good as the one you had but it has leaves, thorns and a stem that your doesn’t.
people invest in the islands for what they are and it is very important to not change that so for me gated communities and lokked off areas to locals is the same as the leaves and the thorns.
the trouble for me is when the locals see that they don’t have the complete rose which is there island but just the head they will want that rose life style back.
If you want gated communityies and logged off areas
thats great invest in la usa , brixton uk, or mafia down town moscow.
but for me not the islands.
intergration is the best policy or division is all you will get and from an investment point of view you want high steady returns not quick bucks hedge funds are for quick bucks.
Thats my rant on the islands and speight bula and hope you wellhere to help
contact me [email protected]hi all
as some one that know also alot about fiji
as I setup what was the reef resort and is now outriggers on the coral coast
and helped setup the laundry in suva hospital
I have had alot to do with fiji.
fiji is the same as most of the island countries in that they have there own way of doing things and you must learn that way before you invest
I have not nor would I invest in island resorts with out checking out the stability of the market.
as for beat up I am sorry for me thats wrong
to say that this issues are beat ups for the papers are simply not true.
why
the australian government thru austrade has very good people in most of the island centers and they relay there own information back independantly of any paper
and for Australia to send ships to international waters, they don’t do that on the sydney morning heralds front page news articles.
I don’t see this post as spam but I would say that anyone reading any article or information on any board to get your own due diligences.
I hope you do well with the resort investment but you do need to modify the style of your writing to reflect your information.
fiji, vanuatu, american samoa, are all areas that for the price for water front land is very cheap
but along with that also come the issue of native titles and as these countries develop and there systems develop
and they realise that what they have sold for one price should have been sold for a very different price
I think that a few investors will have a very rude awakening.
and to say that fiji is a safe place to invest again for me is wrong, what it should say is fiji is a relatively safe place to invest currently.
while ever you have a majority class controlled by a minority class and that minority class has a very different style of living
you will have tension and that tension will not go away on any horizon that I can see.
this is not just fiji this a couple of other islands also.
this does not say you should not invest there
for me you should
but you must understand what you are investing in and understand the culture before investing.
conflicts,adjustments or changes are all part of island life and not unusual you need to adjust to them.
I see great things of both fiji and vanuatu but both need the assistance from investors that are looking not at the quick buck but at long term investments,
my .002here to help
contact me [email protected]hi
there are a couple of reasons for using a company instead of in your own name and these are only examples and are not to be used for any form of investing.
1. yes the company is usually used with a trust and depending on the type of trust will depend how and why you want to distribute profit,loss,equity or unit holding and thye are all very different and there would not be enough room or time to go into the difference and you will need to read up on them.
2. if you use a company trust structure, and you set them up as individual entities the borrow in there own right so they are by definition not cross collateralised even if you equity lend from one to the other they are not cross collateralised again there is not enough room to explain this ad again you need to read up on euity lending.
3.using the company trust structure(micro structure) and separate small minor structures it limits your liability for attack of your whole investment portfolio so you limit to that micro structure only.if you puchase in one entity the whole porfolio is at risk.
4.serviceability is not an issue if its a new micro structure as the lender is lending to the micro structure and you are quarenteeing that the micro can service its debt as its new it couldn’t have a history so the lenders are going off your quarentee and if you tgerm deposit 12 months worth of interest then there is no serviceability issue.if you buy in your name they look at all your properties and see if you can service all the properties the micro does not have this problem.
5. by using a micro structure and set up correctly the company can distribute profits or losses depending its structure that can be very benificial from a tax point of view this is nt the case in your own name.
6. if you die the whole porfolio is thrown in the air like a pack of cards if in your own name but if in a micro structure nothing changes the only change is the unit holders the property stays the same as a company can’t die it can wind up or stop trading but its not reliant on you.
this is not any kind of advice and is for information only.here to help
contact me [email protected]hi kattan
what you can do is get the land owner to give you an option on the land for say 12 months
this give you the time to get it thru council then you have a second agreement that they will do a jv with you and they throw in the land as part of that jv agreement.
the new entity that is the jv is the company ( this you need to work out what structure you want to use) that buys the property after the 12 months.
depending on the lender they will pay out a portion of the land and constructions and the land component can then go to the land owner.
the short fall which will be about 30% of the land value stays in the project as vendor finance until the end.
simply really.
can you get a lend on the above.
yes
any problems
yes I haven’t seen the end cost prices and you will need to have a profit margin of 20% ex gst and total construction costs
inc real total land value inc vendor finance back.
put all the above on a piece of paper with a coffee or talk to a broker and they should be able to understand.
is this type of setup unusual
no
st george and nab would be my best bet for duplex two town houses.
even your solicitor can draw up the jv ( but they charge)
if you have both signing for the loan no problem if the other doesn’t want to sign then vendor finance back put option the first part.
and as they are your jv partner pay them 1 dollar for the option fee ( as I am a t—-t ar-e and never want to pay).
my .002here to help
contact me [email protected]hi all
I hope you have enjoyed it.
I have put up this chapter as it will be a while until I get to the next one as I am in the middle of converting one of my comm shop fronts to my office and will have most of the team for this project in there.
got the electricity on today and phone and adls goes in tomorrow.
cc is already underway and hope to have that thru a private certifier before settlement.
then when settlement is done and we move to construction I will post if people are interested.
although this is my project
I basically end at the settlement from an involvement point of view and move to the next project that is already on the board.
and leave my team to look after it.
sorry about the delay but there may be more to come as I need to reorganise and structure offices to take in this project the builders and there project managers have there offices
and on top of that I have my team that is also made up of builders.
very interesting time.
as I tell most people the most important part of a development is the negotiating at the start thats were you
A. make your money
B. make the guide line and get a profit margin
C. the most important as with this vendor the most movement on price.
for those would be developers if they did a coarse in negotiating its worth is money in gold because thats where the money is.
If you become a good negotiator you will be street a head of the opposition.
this site is a 10mil site with a 100k executed contract and no opposition.
and
guess what this is not a diamond.
there are hundred if not thousand just like it out there. and some are alot smaller then this one.
why you might ask is it then that they have not been snapped up.
for me simple.
we don’t train negotiators to negotiate deals that work.
not all can be negotiated but I think alot can.
and if someone can take what I have put in this tread and use it or a similar manner
and become a good negotiator good on him or her ( and there is no gender restriction on negotiating).
for me they will go far.
soups are out there lots of them.
I have another one being excavated in feb next year but thats another story.
happy hunting and I hope you enjoyed the tread.here to help
contact me [email protected]hi all
if you mirror what you do best will always succeedhere to help
contact me [email protected] if you wishHi all
With regards to this project I will know post the deals of the project as we have exchanged and are moving forward.
The value of the site in 2003 was 10mil
An option holder paid 800k for an option on the land to purchase the land at 8mil
And proceeded to spend in excess of 800k in added option fees from that date today.
The land owners had to hold there sites from then to today and has been paying holding cost in excess of 1.5 mil.
And
I purchased at 6,840,000 how did I get to the 6,840,000 easy 8,000,000 less the 800k deposit that’s 7,200,000 and les 5% as that’s the market movement down so 6,840,000 the site was purchased as a raw site with a da that is purchased each site separately.
To negotiate this I used a real estate agent as my purchasing agent.
Once the price was agreed we then had to reduce the deposit.
The deposit was at 684k so we got it to 5% 342k then we reduced this to 100k and exchanged on 100k so in reality that’s a 100k deposit/exchange (with limited liability to the new lusty street development company only) on a potential 43mil end product site and a 34% return.
Once we had a deal I also had to get the da and this was a job in its self.
I did a deal with copyright owner of the da plans and got those assigned to the owner of the land and in return I get the cc plans done via an associated company.
To get this thru I had also to negotiate a very sticky group of a legal mined field and to do that I negotiated that if you don’t sue him I will organise this, and then if you don’t get sued, then you will not sue him and around it goes.
These are very difficult to achieve and are very protracted we went thru 5 sets on contracts as we changed this and then changed that,
on top of that we have a vendor that has been told that someone was going to buy this property and all he sees if the moving of chess pieces on a commercial business table and its all to much to comprehend.
After getting thru the legal mined field it was a case of get the deposit down which was achieved and then the deal was done.
So I got 100k exchange on a 43mil site end value, with a fixed price contract and full lend for the major part of the construction and know have the da as well.
And a happy vendor a happy real estate as they have followed this deal with great interest (the owner of the real estate was surprised that the accepted the 5% and then 1.4%) the time to get the reduction of 3.6% was about three weeks of negotiating but I am not paying anything put my time and it doesn’t tie up another 256k cash.
Even the loan the broker that has organised the loan I negotiated the brokerage fee and brought it down to a rate that I was happy with and is under ½ % of the total loan.
At 6,840,000 that’s 75k per site and the norm is 95k that’s a value of 8,645,000
So for me it’s a good deal,
The land mark white valuation is 7,200,000
I organised a full Gross realisation loan valuation by landmark white is 39,900,000
With a total construction Inc land of 29,000,000For those interested why I do these deal I think that you may get that from reading a very good article Sydney morning herald good weekend 0ctober 7 2006 page 31 titled harder faster richer and why Mr Moses stays at Macqarie, is very similar to why I do these deals.
It maybe a while until the next post as I will be very busy with this projecthi
somersoft also have a group go to somersoft join and ask when the next meeting is on
I go to the sydney one not had one for a while we did try to get a sydney meeting going but stopped for some reason.here to help
hi
I would do similar to terry but i would the equity lend the value of the ppor against a commercial I would then take the cash flow the excess cash flow from that commercial( the difference between the repayment money to the bank and the rent) and us that to cover the shortfall on that block of units by the river or another development site.
I would jv with a builder for him to cover the construction part of the loan and construct.
and would use the new company/trust to purchase the car and the travel as part of you as a rep of the company to find new clients or sites.
my .002here to help
hi gazman1976
I will continue this post once I have got over a little legal issue. and not for a board at this stage.
with regard how I got here is I have been doing developing with a couple of groups for some time and I was the person that alloted to organise the brokers and funding.
after being at the meeting with the lenders and understanding what they wanted it was a nature progression to start to do the deals and then send out to the brokers.
I started with 15% of the profit and worked up to my current 50% and have got a couple that are 100% of the profit when they look really good.
never worked in construction or real estate can’t build anything except investment structures.
and this is not the big end of town this is the larger small end of town.
I have not forgot about this post when we have got over this legal hump in the road I will tell you either way how it goes for people to understand.
as with everything and soups and no different things change and turn and somethings you don’t have any control of, you have to stand back let the soup simmer once it has had enough time then reapply heat.
we are looking at reapplying heat but not at this stage got a few things to be done first.
