Whats the best deal you’ve done recently

Guys whish I could add one here too

I can tell you bout a deal I am about to do if all goes well.

Like this $75,000 dep (equity) ( 30 % )Commercial Property, Returning $ 26,000 a year.

Not looking for capital appreciation, just the + pos cash flow

Western un fortunately not, but it approx 2,000 grand a year, it’s the same owners since 1953.

But to me the some add up, it’s kind of our first step apart from our i/p unit.

So onward & upward

Hi Westan,

Great topic.

Our last deal that settled 6 months ago looked a bit like this.

Capital
Purchase Price….$ 2.27
Loan……………..$ 2.39 Borrowed the lot, plus expenses
Interest………….$ 171 K p.a. (7.15% fixed 5 yrs)
Land Value………$ 2.10 (92.5%)
Buildings Value….$ 0.17 ( 7.5%)

Income
Just signed up two separate national companies as Lessee’s, both on 4 yr leases with 2 yr options, all on 4% p.a. escalation clauses
Tenant # 1 pays 90K p.a. plus GST plus all outgoings
Tenant # 2 pays 84K p.a. plus GST plus all outgoings

Our prime focus is definitely the capital growth of the land and it’s future development potential. Two acres 4km from Perth CBD. The land has averaged 12.9%, compounded annually over the past 41 years, so we are confident of getting close to that over the next 41 years.

However, the deal is slightly cashflow positive in yr 1 (+ve 3K p.a.)…it gets better as time goes by (+ve 49K p.a.) in year 6…not bad for something that we consider to be Landbanking.

After yr 6 we’ll probably put Billy the Bulldozer through the lot and build something decent up that rents it’s little sox off.

Cheers… [blush2]

Hi Jen, good to hear from you. What’s up ??

The wife and I are trying to be as self sufficient as we can possibly be, mainly to get all of the lessons learnt (there’s a few) in the kitbag for future deals.

Not for everyone mind you, but this is what was involved ;

1. Purchasing – dealt direct with the Vendor, no agent involved (he was in hospital sick).

2. Financing – dealt direct with the Bank, no broker involved (our analysis came to the conclusion they couldn’t compete).

3. Leasing – dealt direct with the Directors and Owners of the companies over in Sydney, no Leasing Agents or PM’s involved (got higher rent and better terms than they could have).

4. Negotiating – dealt direct with their big company solicitors (a harrowing experience, but we stood fast and got everything we wanted).

It’s been a busy little period, and the thought of a holiday is looming large on the horizon.

Hope to see some of the other great deals no doubt being done all over the country and beyond.

Sorry for imposing on your thread Westan.

Cheers.

Dazzling,

All I can say is WOW, how impressive, you have definately built great applied knowledge, and have the confidence to grab the bull, not just by the horns but

Well done great reading.

P.s dont think West will be upset, personally this is fantastic reading about success, and achieving / striving to possess the ability to take full control of the situation as you have just outlined.

Once again very impressive.

Dazzling can just ask one question, do you and your partner share the work load evenly? just curious

Cheers

One of my best deals was one of my first deals.

Bought a 4 unit complex and a single family dwelling on the beach front in San Juan Capistrano, California in 1985 for USD$ 122,000 the pair.

Bought jointly with my sister when i lived in the UK and only purchased as my auntie lived next door to the property. Our US Bank valued the 2 at well over USD$3.6 Million and we get approached by developers daily.

Time to gear up and buy some more US property I feel.

Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.com

Specialising in US & IP finance.