Forum Replies Created
hi
well done fast lane and like the name straight off the mark.
yes not finalised yet so the other post was for people who are interested and sorry put even if we get it and I hope we do thats closed and have the 73 potential purchasers.
with regard to purchasing in the islands there are a couple of things
there always is.
first is not a place in the sun, its an investment and must be seen in that light.
I have dealt for some time in the islands on different business deals and I don’t see it as a place in the sun.
just like you don’t invest in a holiday home or beach house.
the islands each has its own land owner requirements and some are freehold,crown,native, royal,or goverment land, some are leasehold, some freehold.
yes I do invest and will be doing more within the pacific and would invest there before the US or Europe
vanuautu is different to the rest of the pacific in that it is the closest tax haven to asia hence the market moves depending on the cash flow in asia.
interesting that my little investments seem to be ahead of the waves by about 1 to 2 months, I like that.
if you find some thing you are interested in pm me and if I deal in that market will send you the people within that goverment that can help.
oh my little investment is the grandhotelvanuatu.com
tender closed as of last friday and won’t reopen
will sell.
and is in the 16 mil rangehere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi new_world_monkey
i’m in the high lvr box but with rentals to cover it.
I am alittle with Derek but and yes banks don’t like high geared structures but I use developing to keep adding, with the help of growth and the built in profit margin in developing fuels you portfolio.
via this method and by having each project individual and stand alone without any cross collateral I find for me works very well.this is not to say it will work for you and should not be looked at in that manner.
I draw out as much equity as a lender will lend me so yes very highly geared.
I then use that cash across different lending enviroments not just property( in this current market the majority is currently in this market but thats because is a buyers market for a developer)
to give you an idea my structure has the ability to adjust to market change and for the last 2 years I have changed its direction to investing in development sites.
I have taken it from a lvr of 30% to currently upwards of 75% and trying for 80% which is near impossible for me.
I usually run two developments a year on average and have two in for lending this year already with green lights and I’m looking at another 4 by the end of the year.
it not just gearing you look at.
first
can you cover the cost of holding the project.
second
return and is it worth holding
third
if the worse happens have I got an outmine
first
yes as I factor it in at the start
second
min 23% or I don’t look at it
and third
mine have cash flow mins to cover for 3.5 years without a tennant.Hence I don’t worry about the lenders and there are a couple of thousand of them.
so you have to hit alot of walls before you can’t get lending from anyone nor am I worried about lvr’s
the other thing i don’t worry about but alot of people seem to want to know is net worth but thats another question.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi bdm
is this property in vic or nsw.
check the contract and in ther ewill be aclause that says have you been introduced to this property by any agent make sure you get it crossed out very important as the purchaser not the vendor payes this cost.
I do my own negotiations and yes you can neg a deal but you don’t do that until you have a who else is in the deal and b you change other thing around the amount time,vendor finance,deposit and completion not one for changing my offer.
thats part of get the deal at the start and you need to work out a true value to you and thats what you work on.
my .002here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi leesafinch
first forget return and or even investing
first learn.
you are in bris so go to a couple of investing meetings
next get to an accountant in bris that does investing structure somersoft.com have a bris meeting good place to start. or if they have a property invest group bris go there.
next sit down and work out what you are going to invest in
next what your risk levels are high risk /low risk.
next time how much time you are going to put into this project and money to learn.
then and only then
spend out money on your journey to wealth.
at this stage you will already have your structure and with the knowledge you have learnt,
you should know what returns depending on risk you wish to make.
the biggest and best weapon in your fit to get thru that journey to wealth in knowledge.
its no good getting in a car to go somewhere unless you have a map.
map it out first.
but make sure your car is ok hence get the structure right.
sounds simple but thats what investing is.
get it wrong and its expensive to repair a car
same is it repair a structure( the structure is alot more)
my .002 worth and this is not advice and should not be taken as suchhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi all
its interesting reading half a post as I try and work out the question richard answered.
but lets start with basil first get the structure correct that you are going to use to invest (corner stone) and you can’t do this until you have decide what type of investing you are going to do build and hold, reno, ppor, ip, build and sell all are very different and they all have different structures.
if you are just starting you have alot of learning so the best place to start is going to a investor group(not a investor club as they are very different thing)and read up on companies and trusts.
investing maybe seen as a easy thing to do well sorry its not and takes alot of understanding to do it correctly.
as for posi against neg look at whats called neutral or back to back investing where you purchase a neg and at the same time a posi and they offset each other depending on cash flow this can be very successful
my .002 worthhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]got it lou
here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi pipelinebuilder
I have two duplex’s on one block and another two on another in harrington waters further north and an option on a motel that will soon be a 7 townhouse construction site looking at sand.
and yes the market is moving this area has 60% over 55’s and is growing.
the adamstown, williamstown area is also an area to keep a lazy eye on ( got a couple of irons in that market also nothing finalised so no info on it)here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi grant7
Just trying to digest all that.first you get a end value of the project in your case 580k then you take 66.79% which is norm not 69% of the 580k which is 387,380.00 thats is the complete lend you have out of this 5% contingency cost 19.37k the lender hold this and interest 27.12k = 340.89k]
So are you saying the lender lends 340.9k (yes). Purchase price was 400k so would I have to put in 59k deposit (+costs)?? (yes)Why do they keep back 12 mths interest, does that mean I dont have to make repayments for 12 months?(yes as the loan is capitalised)What is the 5% contingency? (its the value the lenders hold for blow out and cost to complete if you run out of money most lenders run it at 5%)
will require a fixed price contract and will pay that in the way that the fixed price has been drawn up and can’t be higher then this amount and that is working out that the land is free of debt.
Is that just the sale contract for 400k?(no the fixed price build contract which must be in place prior to getting lending)you don’t need council approval but its valued by a valuer on the lenders panel and they wont extend more the 66.79% of the value or work done and if its classed as a raw site the value is alot less.
The 580k is just based on comparable sales, if land subdivided. If I dont need council approval how would they know it is subdividable (ie. I havent made a mistake in zoning or something). ?( has the site got da approval if it hasn’t its classed as a raw site)
What do you mean classed as a raw site? (a raw site is a site that has not been given approval to increase it value via building or rezoning)the above is also all ex gst so you need to fund the gst component which is 40k in this case on top on the lend.
Should I need to add GST on a residential block if the existing house is old and if I build 2 more I will rent for 5 years before selling (therefore no GST)? (check with your accountant as there are lots of different rulings with regard to site and what state)
Thanks for your time, and I’m having lots of fun.
Cheers
Granthere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi DLPP
no your wrong a couple are just not listed here and I won’t list them either as if they wanted to the would.
vanuatu hotel tender closed at 5.00 today.so keep the finger crossed and yes I did get to my time line.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi BDM
I have read with interest this post and the main part of this game is not the offer nor the agent,
neither is that important the main part of this game is to get the deal across the line.
first you have made some sort of contact with their solicitor and you have a value that you wish to pay and you have a unhappy real estate.
so lets move the players and you must to get any deal to work.
first the real estate.
organise your own have a chat with a real estate you can work with and tell them in they can do the deal at this value they get a commission.
next ring the solicitor and tell them that you arn’t a negotiator but your real estate agent is and to contact them.
next ring the owner and tell them the same.
next give your real estate a cheque to be put in there trust account for the deposit of the value you want.
then organise a meeting in your real estate to organise a deal and ask all concerned that you don’t keep being annoyed by the other real estate and that any of their cost are carried by the vendor or split listing.
now comes the good bit when this is all done and they all meet at either your real estate office or their solicitors office( and thats where they will say) you then take over the meeting and tell them what a waist of money you have spent to organise this and you want them to pay part of your real estate costs or a reduction to the value to cover this cost.
if you leave that meeting without the deal it was not going to happen.
so get over it.
just because some one is not within what you class as acceptable does not mean you can’t win a deal the aim of the game is to win and if you have to take out a player so be it and in your case its the real estate so take him out and work around what you have.
and from what you have posted what you have called this real estate and his opinion of you is slight compared to nab’s view of me but they still do deals.
and suncorp is worse most of my builders have told me that they haven’t had a lender that likes me but if i want a friend leave that for a saturday bbq.
this is business so forget the real estate and work on the owners and the solicitor.
and a very interesting little piece of information with regard real estate agents if you buy thru one agent but you have registered an interest ie you have rang up about it with another agent you can get hit with two commissions.
read the contract and the part that says the purchaser will pay the commission of the introducing agent cross it out(nsw) and ask for it to be deleted,
I do as standard
if not you can get multipul claims for commission as they can say they are the introducer even thou they did not sell it.
you should see a contract for sale after my black marker has been thru it.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Optimist
look at equity as cash but with out the interest bill.
equity might be in a property but it is very fluid and is looked at as cash by most lenders.
equity is very popular as the deposit base for alot of lending.
strategy and structure are very important prior to any investing.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Nat R
until you start to look you are very surprised at the level of the market that is out there that is either above, below or outside the asic arena for me it real unbelievable some times.
a very slight change here or a different way of doing it over there and it out side and once its outside it sailing heaven.
example
lending
house loan( simple structure) if its from a bank its regulated if its non conforming (its higher risk but still regualted to a degree) if you go mezzanine from a trust or fund its can be regulated but could be out side any regulator but if I borrow on one of my properties @7% and lend you to buy your property as a one on one agreement at 15% its unregulated and outside any lend criteria and as its under 18% is ok in wa and this is just a house loan 15% you may who would pay that well once you own it you refinance and pay me out.
you need to get a couple of sharp pens people to have alook at your project and work from there.
three people you don’t upset ato, osr,and asic, and try to work your deals around all three.
like going for goal around the forwards past the midfield around the keeper and into gaol.
sounds easy tell that to any soccer team or in this case anybody that wants to organise what is called fluid pen work.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Qlds007
thanks
what lvr is this lodochere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi M_K
you can still develop in australia and produce posi properties.
its not easy but yes is very possible sorry not possible actual.
some are out side the cbd cities but posi with growth depending where they are.
you won’t find them on the net or waiting for some one to ring you and tell were they are you need to go bush and find them.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi all
for those like me that couldn’t open the link go to the osr site and you can get to the page off the site under ruling on unit trusts.
Interesting read and so is the somersoft post.
thanks catahere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Qlds007
on what resi end product or resi constuct or ppor need to give us a little bit more info.
still getting over the westpac 85% no lmi and when I spoke to westpac told no said but I was told this????
told no
went to head of lending
told no.
so whats this on
need to know on what and what criteria
sorry Qlds007 but not going to check twice.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi bardon
couple of reasons why not to invest.
1. security or lack of it for non secure loans the rate is around 25%
per annum and up front which you are not going to get.
2. why invest in bulgaria when I can invest with the same risk in fiji or western samoa and the return is better.
3.for british pound I would invest in the northern lebanon, french south wine area,or the south of spain, and get better returns the bulgaria.
4.british investors invest were the return is equal to risk and not sure if that takes in bulgaria I think that you would find more investing in eastern asia, the arab states and the greek island areas before bulgaria and why
because I’m british and go there at least once every 2 years so know a little bit about the country.
One thing you must do when pitching a sale is know your market and sorry you don’t.
the people investing in bulgaria is the eastern european /old ussr states and yes they are investing and yes the market is moving but to the extent that you are prodicting isn’t on my radar.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi grant
maybe I can answer this one.
first you get a end value of the project in your case 580k then you take 66.79% which is norm not 69% of the 580k which is 387,380.00 thats is the complete lend you have out of this 5% contingency cost 19.37k the lender hold this and interest 27.12k = 340.89k the lender will require a fixed price contract and will pay that in the way that the fixed price has been drawn up and can’t be higher then this amount and that is working out that the land is free of debt.
you don’t need council approval but its valued by a valuer on the lenders panel and they wont extend more the 66.79% of the value or work done and if its classed as a raw site the value is alot less.
this is a brief explaination and a broker can explain it the best to your site.
usually 66.79% grossrealisation loans are the easiest to get thru a lender but most developments don’t fit this box because it relys on the project having 33.21% profit most projects have between 22 and 26% profit margins.
the above is also all ex gst so you need to fund the gst component which is 40k in this case on top on the lend.
I only have two projects that have grossrealisation loans at the moment and have top up internal funding to do the projects via equity.
have fun and hope this helpshere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]no problems for me have it running in the back ground.
all seems ok for me I’m on adslhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi to both of you
each month this topic comes up and each month we get about 4 or 5 replys and it doesn’t change so I take it that it won’t,
I am of the opinion that what is posted there is of no interest to me so flip past them.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
