Are You Sure You Really Want To Do This?

[Kristine..]

I had forgotten about John Reed for a few years until this afternoon

I sent the link to a budding and determined property investor and thought I'd go and review the website again myself

His Suggested sequence for starting a real estate investment program http://www.johntreed.com/beginner.html includes the very relevant question Are you really sure you want to do this?

I am not putting this link back up to frighten anyone away from property investing. I think it's the greatest show on earth - but you do have to be prepared to take the rough with the smooth, such as http://somersoft.com/forums/showthread.php?t=80602 and also today, my commercial property manager called up to say that one of the commercial tenants wants to withdraw from the recently signed lease due to a change in personal circumstances

So just when we thought we were at least through the rip and sailing into calmer waters, up blows another storm and away we go again!

My commercial manager tells me he has two mortgagee auctions this weekend and another one next weekend. We haven't seen the end of the Global Financial Crisis yet - and maybe, we haven't even seen the middle of it - so it can help to maintain a realistic attitude to read eg John Reed's words of wisdom from time to time and to remember that this is for the long haul, this is for the twenty year run, and that sometimes the rough weather will be decidedly rough and to be prepared for that when planning out our portfolios

Anyway, just thought I'd share. I rather like John Reed's slightly caustic style and shall enjoy having a rummage around his site and see what may come up

Cheers
Kristine

 

[buzzlightyear]

........and also today, my commercial property manager called up to say that one of the commercial tenants wants to withdraw from the recently signed lease due to a change in personal circumstances

So just when we thought we were at least through the rip and sailing into calmer waters, up blows another storm and away we go again!..........

Oh no Sorry to hear that Kristine and that was only a few months back for memory.

What are you going to do with the lessee, aside from wringing their necks?

 

[Kristine..]

Hi Buzz

Yeah, well, thanks - but there is nothing much I can do. I know this is not deliberate and it is not 'personal' and there is nothing to be gained from being angry, so - as usual - we just deal with it.

I never could see the point in wasting precious energy or peace of mind by throwing hissy fits or thinking nasty thoughts. One expletive is usually enough, and then we just get on with it.

Hopefully, the next tenant will be there a bit longer - at this rate, we have gone from 6 years to 5 years to 12 months to 9 months to 7 months - it's about time we got back to 5 years per tenant, I think!

Cheers

 

[Scott No Mates]

My commercial manager tells me he has two mortgagee auctions this weekend and another one next weekend. We haven't seen the end of the Global Financial Crisis yet - and maybe, we haven't even seen the middle of it - so it can help to maintain a realistic attitude to read eg John Reed's words of wisdom from time to time and to remember that this is for the long haul, this is for the twenty year run, and that sometimes the rough weather will be decidedly rough and to be prepared for that when planning out our portfolios

There's a lot of pain still to come, we just haven't felt it (yet).

 

[BayView]

My little sleepy hollow is certainly not the centre of the Universe, but it is full of average Aussies, retirees, tradies and others.

A good cross-section of folk, and we have a decent bit of retail and there is an industrial estate.

Very strong tourism now most of the year - lots of visitors from up in town all year round, thanks to the improved road system over the last 10 years.

We have a few empty shops currently, as well as a couple of businesses which have closed down.

As well as this, I have been watching a small number of factories out in the industrial estate which have had the tenants close up shop. They are still for sale after many months, and still vacant.

Not to say there is no activity and that it is all doom and gloom - there are still new dwellings going up, and even the odd factory being built - but I reckon the climate is not that good generally.

On a daily basis I still have reps in the automotive and tyre game telling me how dead it is everywhere - across Melb.

It would certainly be hard for folk living in places like Chapel st in the latte strips where the shops are always buzzing and things look on the up and up; to see the wider picture.

It certainly doesn't help when the Pollies get on the teev and crow about how well Aus is going compared to the rest of the world.

I think it's fortunate timing that we have the mines propping things up currently.

 

[sash]

Unfortunately....this is very true.

I feel that a small downturn is actually good as it sorts the crazy wage inflation and reduces prices. Otherwise we could be in for a harder landing.

Unfortunately...some people are going to get burnt.

Cash flow and cash now is king for the moment.

On the positive side....it presents an opportunity where in 3-4 years....people will do well if they take a medium term view.

My little sleepy hollow is certainly not the centre of the Universe, but it is full of average Aussies, retirees, tradies and others.

A good cross-section of folk, and we have a decent bit of retail and there is an industrial estate.

Very strong tourism now most of the year - lots of visitors from up in town all year round, thanks to the improved road system over the last 10 years.

We have a few empty shops currently, as well as a couple of businesses which have closed down.

As well as this, I have been watching a small number of factories out in the industrial estate which have had the tenants close up shop. They are still for sale after many months, and still vacant.

Not to say there is no activity and that it is all doom and gloom - there are still new dwellings going up, and even the odd factory being built - but I reckon the climate is not that good generally.

On a daily basis I still have reps in the automotive and tyre game telling me how dead it is everywhere - across Melb.

It would certainly be hard for folk living in places like Chapel st in the latte strips where the shops are always buzzing and things look on the up and up; to see the wider picture.

It certainly doesn't help when the Pollies get on the teev and crow about how well Aus is going compared to the rest of the world.

I think it's fortunate timing that we have the mines propping things up currently.

 

[Trogdor]

and also today, my commercial property manager called up to say that one of the commercial tenants wants to withdraw from the recently signed lease due to a change in personal circumstances

So just when we thought we were at least through the rip and sailing into calmer waters, up blows another storm and away we go again!

Do they have assets (tenant or g'tor(s)?)

If the lease has been signed and they own property you can certainly recover against them any loses til you sign up your next tenant, and any shortfall in future rent.

If the lease had been executed and in force they can't just "withdraw" from a commercial lease.

Speak to your solicitor if you have not already done so (including having him do property searches against all g'tor(s)).

Good luck.

 

[our obsession]

So sorry to hear this Kristine, again, wishes of support and that things will go right-better.

For the question AYSYRWTDT? Even after Bob and Kath's troubles, even knowing the challenges Kristine is facing at the moment I still have to say yes.

After being off the forum for a bit, to come back and hear some of the greatest inspirers are facing such challenges, I consider it very sobering, food for thought, but a yes still, even though....