Every man has to have a shed
- Thread starter Dazz
- Start date
Hmmm....hard up against the Bank at the mo'.....looks like after the 'sorting' I'll definitely be a boy...
Our current LVR is 52. Trying to rip out two properties from their clutches, which should push our LVR with them up to 67. No big deal I thought. Under their 70% limit. I didn't count on this layer upon layer of conservatism and "we need to minimise our risk to the absolute minimum". They never follow through with the other end of that statement - which reads "and henceforth pushing your risk to the absolute maximum".
On Monday the twit I have for a Banker nowadays said no worries - all looks good for releasing the two titles.
On Wednesday he said the 'credit officer' had some questions for him, but all was cool and everything trucking along nicely...can't see why the 'credit officer' wouldn't say yes.
This morning he now informs me there are big clouds looming and it's looking highly unlikely the Bank will release any security - they need to rethink their position.
I said - wrong answer. It's either going to be a willing yes, or a legally forced yes. Either way - it's gonna be a yes.
I've got a nervous vendor still on the end of the line (2 elderly brothers and one sister - all around 65) who are sweating on me coming up with the dosh. They've had the legal right to pull the pin on the Sales Contract as of Wednesday, so I'm S.O.O.L. on that front.
The Bank have already said no to me for financing the shed, and are now playing "dog in a manger" with me to ensure I can't go with anyone else. One of the other big four is all lined up and happy and ready to finance the deal. Trouble is I don't have a 30% deposit to give them....most people don't have that type of cash in their pocket.
The most frustrating thing about the whole ordeal is that I cannot speak to anyone 'in charge'. They are either completely removed from the process or not authorised to either comment or make a decision.....probably just how the Bank big dogs like it to keep it on a clinical professional level. Heaven forbid if actual humans were actually involved in the process.
Talking with low level numpties, or politically correct wet blankets is driving me crazy.
The Bank is apparently having a telelconference on the matter in an hour or two with the sausage that actually make the decision....and obviously I'm not invited or involved....it's only my money and business they are discussing so why should I be involved right ?? She's all secret secret whispers....I'll be the poor schmuck at the end of the line who's last to know. Of course, no room for negotiation at that stage, it'll be a done deal by the time I'm brought in.
Meanwhile, I'm at work trying to feign interest in this irrelevant nonsense they have me doing, watching from the sidelines as the biggest deal of my life withers and dies.
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What happened?? Did the teleconference happen??
The suspense is killing me - and probably everyone else on SS who has been staying up to date with your banking debacle?
Still holding out a glimmer of hope for you!
I think it's fairly safe to say that NOTHING can save the bank ...
DJ
Well, miracles will never cease - that negative Friday morning phone call prior to their teleconference was just a curve ball to keep me on my toes apparently.
I finally received written advice from the Bank advising me that they had agreed to let the two titles go from out of their security pot....so she's all steam ahead again. Given the tight time frames I'm working to, it was definitely a deal breaker if the Bank said go away. There was no way I could have re-financed in time.
My MB (funny writing that, I've never had one of those before) is working deals behind the scene to grease the wheels of Banking, to bridge the gap and convert my real life financing / investing concepts with the space cadet models these Bankers concern themselves with.
It's quite amazing how far apart we are with our priorities over the deal. My main concern (about 90% of my objective) with buying the property is capital growth of the underlying land component. Having the place nearly pay for itself on an income side of things is of a minor concern.
The Banks on the other hand couldn't give a rats about the capital growth side of things, all they are interested in is whether I can service the loan. Everything else is irrelevant to them
So anyway, that's the big hurdle out of the way, I've now got a deposit, now to the next set of hurdles.....
1. Called the Vendor's agent's agent's agent....(there's a few in line all with their hand out of course) to advise him that we are still in the hunt and should be taking big leaps forward this coming week. They can still at any time pull the pin on the deal, but I feel they want me to stay, get my s**t together on the finance side of things and complete the deal. It'll be another 6 months for them finding another suitor if I pull out.
2. Have the big four Bank's rep flying over to visit the property and talk with the tenant's representative onsite tomorrow morning. I'll have to ask him a few questions, as I haven't visited the site either - nothing like buying sight unseen - never done that before either.
3. We've got a valuer lined up to go in and give an "official" valuation that the Bank can rely upon.
My life at the moment seems to be a constant series of knocking down hurdles that everyone else seems to enjoy putting up in front of me for their own protection. Sometimes with these finance guys I feel like a monkey on a leash, with them sniggering in the corner amongst themselves saying things like
"Yeah yeah, check this out, watch him roll over and jump through these hoops we set for him.....and just for giggles let's ask him to jump over this barrier as well and see how high he can jump."
Anyway, should be able to go unconditional on the contract with 2 weeks from now, as long as someone actually walks up with a big bag of cash at some point in time, cos I'm buggered if I've got any....
I finally received written advice from the Bank advising me that they had agreed to let the two titles go from out of their security pot....so she's all steam ahead again. Given the tight time frames I'm working to, it was definitely a deal breaker if the Bank said go away. There was no way I could have re-financed in time.
My MB (funny writing that, I've never had one of those before) is working deals behind the scene to grease the wheels of Banking, to bridge the gap and convert my real life financing / investing concepts with the space cadet models these Bankers concern themselves with.
It's quite amazing how far apart we are with our priorities over the deal. My main concern (about 90% of my objective) with buying the property is capital growth of the underlying land component. Having the place nearly pay for itself on an income side of things is of a minor concern.
The Banks on the other hand couldn't give a rats about the capital growth side of things, all they are interested in is whether I can service the loan. Everything else is irrelevant to them
So anyway, that's the big hurdle out of the way, I've now got a deposit, now to the next set of hurdles.....
1. Called the Vendor's agent's agent's agent....(there's a few in line all with their hand out of course) to advise him that we are still in the hunt and should be taking big leaps forward this coming week. They can still at any time pull the pin on the deal, but I feel they want me to stay, get my s**t together on the finance side of things and complete the deal. It'll be another 6 months for them finding another suitor if I pull out.
2. Have the big four Bank's rep flying over to visit the property and talk with the tenant's representative onsite tomorrow morning. I'll have to ask him a few questions, as I haven't visited the site either
- nothing like buying sight unseen - never done that before either.3. We've got a valuer lined up to go in and give an "official" valuation that the Bank can rely upon.
My life at the moment seems to be a constant series of knocking down hurdles that everyone else seems to enjoy putting up in front of me for their own protection. Sometimes with these finance guys I feel like a monkey on a leash, with them sniggering in the corner amongst themselves saying things like
"Yeah yeah, check this out, watch him roll over and jump through these hoops we set for him.....and just for giggles let's ask him to jump over this barrier as well and see how high he can jump."
Anyway, should be able to go unconditional on the contract with 2 weeks from now, as long as someone actually walks up with a big bag of cash at some point in time, cos I'm buggered if I've got any....
Joanna / Kathryn,
Of course I could go to different lenders given enough time and hassle, but I don't have the luxury of either right now.
Also, the rates my current loans are on are about 1% lower than what is on offer right now. They are all 5 yr fixed loans maturing around 2010 and 2011, so big exit fees and bigger interest bills if signed up to new loans would cripple me right now.
The best course of action was to extract titles from the security pot and keep the lower rates and not pay any exit fees.
When all the loans expire, don't worry, I'll be having a serious shop around.
Of course I could go to different lenders given enough time and hassle, but I don't have the luxury of either right now.
Also, the rates my current loans are on are about 1% lower than what is on offer right now. They are all 5 yr fixed loans maturing around 2010 and 2011, so big exit fees and bigger interest bills if signed up to new loans would cripple me right now.
The best course of action was to extract titles from the security pot and keep the lower rates and not pay any exit fees.
When all the loans expire, don't worry, I'll be having a serious shop around.
Geez. I thought it was meant to get easier as you went along ...
Congrats ... full steam ahead ... again!
Guess that shed party's back on, eh?
DJ
Congrats ... full steam ahead ... again!
Guess that shed party's back on, eh?
DJ
Well done Dazz, glad to hear it's comming together and they found the money somewhere for you.
("Now I know we had some money somewhere!!!!")
Dave
Attachments
Well it's all happening this morning. The phone has been running hot, and my heart rate is dangerously high juggling all of this nonsense that needs to be done to get the deal over the line.
Apart from looking extremely busy at work, with a boss continually throwing stuff at me and a rig with 100 guys waiting for the next list, I've taken multiple calls from mortgage brokers, leasing agents, wifey, accountant, sales agents and multiple link up chats so that each can satisfy each other, as most of the actions are interlinked like a domino chain.
I'm in the final negotiation stages of leasing out our "ugly duckling" shed, which has now somehow intertwined itself into this much larger deal. I suppose the ugly duckling shed was one of the titles to be pulled out, so understandably the bank who is going to finance it wanted it leased up.
As a sideline to the main shed, with the leasing out of our little shed I wanted the following ;
Term : 10 years
Bond : 12 months rent
Rent Paid : Quarterly in advance
Rent : $ 145,000.00 p.a. plus outgoings of another $ 15,000.00 p.a. plus GST on top of all that.
Rent escalation schedule : 5% up in the first year, then a market review second year (hopefully jumping to 180K p.a.), and another 5% the third year thereafter.
We've just verbally agreed that rent and O/G structure with a heavy haulage trucking outfit on the following basis ;
Term : 3 years
Bond : 3 months rent
Rent Paid : Monthly in advance
Rent : as above
Rent escalation schedule : as above.
Not exactly what we were looking for, but the wife and I thought a bird in the hand is worth two in the bush. The tenant has a 3 year contract with the big mining companies and wanted to tie the lease term with what they had on contract. Fair enough. No options. Should have that signed up and finalised by the end of the week.
Our interest bill on the place is 59K p.a., so that'll spin off a bit of free cashflow to feed the Bank's voracious appetite on other negative cashflow deals. My previous tenant going belly-up was a blessing in disguise.
Anyway, back to this larger shed deal, I had a good chat this morning with the Vendor's agents agents agent and he was happy with progress. They are still standing there with not a jot of security, but I'm very confident we can complete this deal at settlement.
Righto, better go and write up a placating email so he can forward something to the Vendors. They've been very patient with me so far and I suppose a few less elderly folk would have dumped me by now, but they seem to be keen to hang on to me for a bit longer.
Apart from looking extremely busy at work, with a boss continually throwing stuff at me and a rig with 100 guys waiting for the next list, I've taken multiple calls from mortgage brokers, leasing agents, wifey, accountant, sales agents and multiple link up chats so that each can satisfy each other, as most of the actions are interlinked like a domino chain.
I'm in the final negotiation stages of leasing out our "ugly duckling" shed, which has now somehow intertwined itself into this much larger deal. I suppose the ugly duckling shed was one of the titles to be pulled out, so understandably the bank who is going to finance it wanted it leased up.
As a sideline to the main shed, with the leasing out of our little shed I wanted the following ;
Term : 10 years
Bond : 12 months rent
Rent Paid : Quarterly in advance
Rent : $ 145,000.00 p.a. plus outgoings of another $ 15,000.00 p.a. plus GST on top of all that.
Rent escalation schedule : 5% up in the first year, then a market review second year (hopefully jumping to 180K p.a.), and another 5% the third year thereafter.
We've just verbally agreed that rent and O/G structure with a heavy haulage trucking outfit on the following basis ;
Term : 3 years
Bond : 3 months rent
Rent Paid : Monthly in advance
Rent : as above
Rent escalation schedule : as above.
Not exactly what we were looking for, but the wife and I thought a bird in the hand is worth two in the bush. The tenant has a 3 year contract with the big mining companies and wanted to tie the lease term with what they had on contract. Fair enough. No options. Should have that signed up and finalised by the end of the week.
Our interest bill on the place is 59K p.a., so that'll spin off a bit of free cashflow to feed the Bank's voracious appetite on other negative cashflow deals. My previous tenant going belly-up was a blessing in disguise.
Anyway, back to this larger shed deal, I had a good chat this morning with the Vendor's agents agents agent and he was happy with progress. They are still standing there with not a jot of security, but I'm very confident we can complete this deal at settlement.
Righto, better go and write up a placating email so he can forward something to the Vendors. They've been very patient with me so far and I suppose a few less elderly folk would have dumped me by now, but they seem to be keen to hang on to me for a bit longer.
I wouldnt say Dazz is lucky as such, he's worked smart and hard to get this one over the line I reckon.
The line is just proving to be a bit further away than it was before.
Dave
Yeah, after putting in a 15 hour day, I'm feeling really lucky right now...
I've never bought one of those so dunno how they work. I did read on the back of a $1 scratchy once that said "This card is worth 94c".....I thought righto that's not for me.
