All Topics / General Property / Had a good day

Viewing 13 posts - 1 through 13 (of 13 total)
  • Profile photo of DazzlingDazzling
    Join Date: 2005
    Post Count: 1,150

    Well, the wife and I have just had a really good day.

    We were in our overalls on one of our industrial sites, clearing up people’s garbage yet again (as you do). Had the chain saw in my hand and sweat dripping down my nose when a shiny white car drove up and disgorged a rather large man wanting to look around the place.

    We swapped business cards (always keep some in my bib and brace overalls just in case), and I had a smirk as his eyebrows went up when he read my card…..the card didn’t fit the image I presented in front of him.

    Anyway, we chatted for a while and showed him through the place, being careful to avoid the garbage still strewn about by the former dreggs of tenants.

    He was the managing director of a large skip bin company and needed premises pronto. They were way up in the hills and wanted a more prominent presence closer to the city, so the size of the property and the location were ideal for him.

    We cut a deal there and then on the spot and I’m spending the rest of the night, glass of red in hand putting the Lease together for execution before I leave the country this weekend.

    Here’s the numbers ;


    Purchase price of the property……780K
    Stamps and other costs……………….40K
    Total Loan………………………………….820K
    Interest Rate………………………………7.17%
    Land value…………………………………700K (88%)


    Interest Payable………..$ 1,130 p.w.
    Outgoings…………………$ 250 p.w.
    Rent for minor section of the property….$ 379 p.w.
    Deal struck today for the majority of the property…..$ 1442 p.w. plus O/G’s

    The chap has agreed to a 5 year lease with a 2 yr option. He intends on spending about 50K doing up the property, improving driveways and lifting the roof on the 3.5m sheds to accomodate his 5.5m tippers, putting in a garden and putting in carpet and painting where he thinks he needs it. I said “Go for your life, as long as there is no soil contamination, I’m happy.”

    We have been trying to rent the majority portion of these premises since May last year. The previous owners offered to stay (truck operators with disgusting filthy habits) for 3 years with a 3 year option after that on only $ 507 p.w. with no outgoings paid. I believe we made the right decision in telling them no thanks and having it empty for the past 8 months waiting for the right tenant. The money lost over the past 8 months will be made up in about 5 months, and then for the next 6-1/2 years we’ll be well in front.

    Heading up to his current operation to see what they are really like and start doing some financial background checks.

    The in cost I’ll be charging is the standard 1 month in advance, 1 month security bond and 2 months bank guarantee, a total of $ 25K before he drives the first truck onto the property.

    Anyway, we have had a very good day. Now to finishing off that 50 page lease, wrapping him tighter than a drum with phrases like “The Lessee shall, at the Lessee’s sole expense and risk… the Lessor’s satisfaction.”

    Hope you all had a successful day as well.


    Profile photo of redwingredwing
    Join Date: 2003
    Post Count: 2,733

    Had a Great Day Dazzling

    The last of my appraisals for our Investment Properties came in yesterady, its only nearing the end of January and we’ve achieved one of our 2006 Goals regarding total property portfolio value (equity has jumped up as well and LVR is down to 64% from 71%)

    My only bugbear would be my DSR..

    Funnily enough..yesterday I was also approached by the BDM of another group with another offer of a position within their group (I had previously declined an offer from them)

    I’m seriously thinking about the new offer and the pro’s and con’s, what ifs etc. If I take it, my DSR will undoubtebly improve

    So, as with you I had a pretty eventful and fruitful day [biggrin]

    PS- Congratulations Dazzling, seems like your always working, great effort

    “Money is a currency, like electricity and it requires momentum to make it Effective”
    Count The Currency With This Online Positive Cashflow Calculator

    Profile photo of adambcadambc
    Join Date: 2003
    Post Count: 145

    Well done Dazzling (and Redwing)!

    It’s inspiring for us newbies to hear these success stories from the more experienced investors out there! Please keep these type of posts coming for our benefit!



    Don’t let life get in the way of living.

    Profile photo of fernfurnfernfurn
    Join Date: 2005
    Post Count: 139

    Good on you both, Dazzling its marvellous to have a decision validated. I’m also having a great day. The concreters are here setting up the slab for the townhouse. I thought they were going to strike huge tree roots and where was I going to get a stumpmuncher to come/hire/buy an axe etc. on Oz Day, but (touch wood) not one. The poor old plumbers on the other hand at set out the other day struck numerous roots but they had a little excavator and were able to pull most of them out. The Electrician took one look at the remains of a stump from the trees all over the block I had cut down at the start and looked at me blankly. Luckily enough I was able to get a stump grinder in within half an hour which he was able to get enough out (right up against the footpath) for the electrcians excavator to make enough space to bend the electricals around. So although the heat (38 in Melb today) is drying their sand out faster than they can shape it, all in all – a great day.


    Profile photo of Jenny1Jenny1
    Join Date: 2004
    Post Count: 269

    Dazzling you never cease to amaze me of the deals that you pull out of a hat, I just think you have the momentum going (cleaning up others crap seems to be your speciality and having your lovely wife beside you is great support- not very romantic for the last few days left in Oz though, I think I will have to pass on some romance tips as all work and no play etc etc) and there is no stopping you great stuff [thumbsupanim].

    Who would of thought placing a few of the business cards in the old bib and brace you could of looked a lot worse to your prospective tenant, I have seen some ugly looking stubbies on work sites complete with builders crack!! [lmao]

    Great to hear your stories, stay safe and hve a nice romantic night wtih candles and a shared bottle red wine with your wife before you go o/s.



    Profile photo of AmandaBSAmandaBS
    Join Date: 2005
    Post Count: 549

    Dazzling thats great news and peace of mind with you leaving. Remember I’ve offered you a cleanup job over Easter if you’re back in the country !! We’ll miss your posts but try and keep us up to date as you never cease to amaze me with your colourfull stories.
    Keep safe,

    “It is better to be inconspicuously wealthy, than to be ostentatiously poor…”

    Profile photo of camnlisacamnlisa
    Join Date: 2004
    Post Count: 21

    Great to hear some successful stories coming through – congratulations everyone!! I had a great day yesterday signing a contract on an IP at $235K rented at $550 per week to a company until November!! Have made instant $40K equity as most houses here are being sold at the 11 second 10% rate. Aah, the pros of being an area specialist!!

    Was very timely as my husband and I were starting to despair that we would ever move on to our next IP ….. kept getting beaten to the punch!!

    Onward and upward!! [medieval]



    PS – thanks for the A ha moment Steve!!

    Profile photo of SweetSweet
    Join Date: 2006
    Post Count: 63

    Dazzling thats amazing, again a great success story, i cant even think of doing a deal with that much money at the moment! Props

    Profile photo of DazzlingDazzling
    Join Date: 2005
    Post Count: 1,150

    Well folks, today is the day…in more ways than one.

    All of the promises, handshakes, verbal commitments, pledges and argy bargy negotiating finally came to a head today with the signing and due execution of a 15 year Lease over our property detailed above.

    Final rental was 80K p.a. & GST plus all outgoings. 4% escalation clause per year.

    The positive cashflow generated from the property (10.25% nett in the first yr) over the Lease term shall completely pay for the property. Not too shabby for a bunch of tired old 1960’s rusty sheds that we paid 5K deposit to acquire. (BTW – don’t believe anyone that says you cannot purchase cashflow positive properties in today’s prop. market).

    The property has averaged 11.1% capital growth over the past 26 years. If that capital growth rate continues, the Lessee shall hand back the vastly improved property to us in 2021, fully paid off, worth ~ 3.8MM. If it doesn’t do 11.1%, we’ll be happy with whatever it does.

    This was our “ugly duckling” property that we purchased, after everyone else in the market passed it over during the 8 months of marketing by the vendors with not a nibble. We had a little faith in it and it’s attracted a “beautiful swan” as a tenant.

    Now that that’s finally off our plate, the wife and I have decided to head into the CBD and go hunting some full office block elephants. Should be fun…no make that daunting….competing with the institutional players and super funds for the tightly held stock.

    On a final note, we’ve also decided to give the forums a bit of a rest for a while, so this will be my last post for a good while. I’ve very much enjoyed my time and “met” some wonderful folks on the boards. There’s alot of good people on here with high morals and good integrity. We’ve enjoyed discussing the many and varied aspects of this game we play so passionately.

    I hope you all have an exciting journey with this game we all play called property investing.

    Cheers guys. [biggrin]

    Profile photo of learnsharelearnshare
    Join Date: 2003
    Post Count: 105

    Conratulations Dazzling.
    And many thanks for sharing your wonderful and inspiring story.

    We’ll be missing you for a while.
    Hopefully, you will still drop us
    a line, from time to time, with your interesting cases, opinions, and

    All the best. And


    Profile photo of ChoirChoir
    Join Date: 2004
    Post Count: 28

    Hi, Dazzling,

    Your stories always amazed me. I believe you have contributed a lot to the Forum in the past and I certainly enjoyed reading your posts and responses.

    It is sad to see you leaving us for a good while. Hopefully, you will drop by and update us on how you are going. My feeling just like saying ‘goodbye’ to the player who managed to get out of the rat race.

    I do wish you all the very best with your property investing game.


    Profile photo of grossrealisationgrossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi dazzling
    interesting post.
    hope you log in and have alook some time.
    the trouble with investing is its like a drug and you can’t get unhooked.
    I do hope to someday meet up, I have a very tight 5 year time line and then I’m moving around.
    I am infront of my target and this year has started in turbo mode as its going very well.keep my email address (and I know you have it)and maybe later on.
    we may do one of these deals together of yours.
    I have my eye on a very large motorhome to do my moving around in and even then I will have net access.
    all the best and next time I’m in perth if you are around, we will catch up on that beer (or scotch)
    see ya

    here to help
    If you want to get involved in some of the projects I’m involved in email to [email protected]

    Profile photo of redwingredwing
    Join Date: 2003
    Post Count: 2,733

    I’m jumping on Dazzlings bandwagon and will soon be away from the site for a while due to work commitments with the new job..

    I May drop in from time to time as a “lurker” [fear]

    Thanks to everyone for thier assistance, I’m sure I’ll still be in e-mail contact with several of the Forum members I’ve met[thumbsupanim]


    “Money is a currency, like electricity and it requires momentum to make it Effective”
    Count The Currency With This Online Positive Cashflow Calculator

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