Every man has to have a shed

Just arrived home after more heavy negotiating with both the former tenant and future tenant of the smaller ugly duckling sheds.

The skip bin guy who went bankrupt wants to stay for another month to clean up his "stockpile", and see if he can wangle out of paying me any rent, and the other guy wants to move in ASAP, but first ensure that the 1,000 odd tonnes worth of cr*p on the property currently is removed.

The new tenant, the proprietor for the heavy haulage company, thinks that the worm of a REA he's been dealing with was a pencil neck and doesn't want anything further to do with him. He swore a bit and carried on for a while, until he realised I wasn't like the REA. We then had a really good chinwag where reality dominated the conversation. It reminded me of conversing with one of the many rig workers I have to deal with every day.

In the end we got on just swimmingly, and agreed to meet at the property on Saturday and sign the Lease paperwork and he'd hand over the bank cheque for $ 60K for the bond. That'll come in handy. I think he'll turn out alright, although he said he hadn't been a tenant before, so reading the 42 page Lease I wrote and sent him tonight may come as a bit of a shock to his system. He'll get over it.

Anyway, that's what I was doing while the rest of Perth was watching ACA and Today Tonight....
 
Dazzling said:
so that'll spin off a bit of free cashflow to feed the Bank's voracious appetite on other negative cashflow deals.
Click to expand...

nice spinoff - around $86k for the first year ...

great (hard) work daz. really starting to pay off for you.

why would the skip bin guy need a month to clean up his 1000 ton of rubbish? what are you going to give him - a week? and tell him to bring his big trucks and bulldozer.
 
lizzie said:
why would the skip bin guy need a month to clean up his 1000 ton of rubbish? what are you going to give him - a week? and tell him to bring his big trucks and bulldozer.
Click to expand...

They asked for 6 weeks (Sept and 2 weeks of Oct) to clean up and extricate themselves from the property. That was agreed up front.

As usual, they try it on to the maximum possible, and have continued to operate from the site as if nothing has happened. So, they have less than 2 weeks left and haven't started doing anything. Pleading from the new Owner yesterday asked for an extension to the end of October. I said OK, but you've got to pay the new rental rate, and the new Tenant is moving in on Nov 1 so that'll be it. Anything not cleaned up will be disposed of and charged to you at top rates. They don't like that, so we'll see what they say.

We are having a big onsite meeting on Saturday morning to sort out the truth from the BS.
 
...nope....I could fill a book or two on the saga I've had to wade through trying to purchase this monster.

1....I've missed finance clause deadlines 4 times now, seen no official Bank paperwork for the 5th Lender, since the 4th Bank in a row tried to shaft me by sending through paperwork different to what was agreed.

I tell ya, if you ever have the unfortunate experience of having to deal with a State Manager or some high flying regional vice president of lending blah blah blah, then watch 'em like a hawk, cos they're as slimey and cunning as a sewer rat....they know every trick in the book to make the Bank more money.

I've been through CBA / NAB / WBC and Bankwest....and wouldn't trust the lot of 'em as far as I could kick 'em.

2....My sett. agent hasn't seen any Form 1's (SA version of Vic's section 32) as yet. She's having fun !!!

3...No word on the 3 month tenant bond, agent has gone real quiet on that one..

4...The group of elderly Vendors have disappeared.....although as I said previously, there are nine separate parties or entities between me the Purchaser and them the Vendors, so I never expected to have much contact with them. Might try and actually call them next week, just for a laugh. All of these advisers and brokers in between are driving me crazy.

5...Due to settle on Thursday.....whaddaya reckon - think I'm gonna make it ??


Suffice to say I'm still wading through the financial mire....
 
Dazzling said:
...nope....I could fill a book or two on the saga I've had to wade through trying to purchase this monster.

1....I've missed finance clause deadlines 4 times now, seen no official Bank paperwork for the 5th Lender, since the 4th Bank in a row tried to shaft me by sending through paperwork different to what was agreed.

I tell ya, if you ever have the unfortunate experience of having to deal with a State Manager or some high flying regional vice president of lending blah blah blah, then watch 'em like a hawk, cos they're as slimey and cunning as a sewer rat....they know every trick in the book to make the Bank more money.

I've been through CBA / NAB / WBC and Bankwest....and wouldn't trust the lot of 'em as far as I could kick 'em.

2....My sett. agent hasn't seen any Form 1's (SA version of Vic's section 32) as yet. She's having fun !!!

3...No word on the 3 month tenant bond, agent has gone real quiet on that one..

4...The group of elderly Vendors have disappeared.....although as I said previously, there are nine separate parties or entities between me the Purchaser and them the Vendors, so I never expected to have much contact with them. Might try and actually call them next week, just for a laugh. All of these advisers and brokers in between are driving me crazy.

5...Due to settle on Thursday.....whaddaya reckon - think I'm gonna make it ??


Suffice to say I'm still wading through the financial mire....
Click to expand...

You do realise you could just find a better deal and do that instead ;)
 
LynnH said:
It sounds like a nightmare in progress. :( But hang in there!!! And good luck!!!!!
Click to expand...

Cheers Lynn,

Well we hung in there and just received written finance approval for the full purchase price plus all costs. :):):)

More importantly, it was on terms and conditions that I wanted which was excellent - far better than the big banks would commit to.

Currently doing cartwheels through the office corridors with my fellow workers thinking I'm going nuts....WOOHOO....I don't get excited very often but this one is worth savouring for a while.

The deal is over 100 times the size of our first PPoR we bought 9 years ago, so the power of compounding does work.

OK, so it's on to all of the other STUFF that needs to be done to execute settlement. We haven't a ghosts hope of meeting the original Nov 1 deadline, so we'll simply re-schedule a time and move on.

I think the three old ducks who own the place were having a cardio, as if it didn't come through, it would of taken them another 6 months to go through the process of finding another buyer.

Anyway, that's the biggest hurdle overcome, more than 3 months of stress and headaches behind us, after hustling everyone up to get the job done.

I'm bloody exhausted to tell you the truth, and looking forward to a red wine or three tonight.

Thanks everyone for the good wishes through this thread - it's been a great sounding board as I've waded through the mire. It feels great to be standing on the riverbank on the other side home and hosed.


Special thanks must go to Alistair Perry, the mortgage broker whom I met through this forum who pulled me out of the X-Coll Big Bank hellhole I was in. Didn't help that he became a father again just at the critical moment, but they both eventually came good. Onya Alistair and congrats again on your far more valuable present. Who knows, I may even shout you a beer or 10 when you come over to Perth.

A big thanks also to Steveadl who took time out of his private life to go over to the prop and take about 60 photos for me. Showed me a few aspects of the property I wasn't aware of.

Oh well, I'm off to party. :D
 
Hey Dazz

CONGRATULATIONS!!! You must be hugely relieved! Have been following your thread, with all its ups and downs, and the thing that has stood out is your sheer tenacity! You are truly an inspiration to those of us who aspire to investing in commercial property!

Enjoy your red wine ... or two ... tonight. I'll have a glass (or two) of champers for you - "To Dazz and his shed!" :D

Cheers
LynnH
 
Great work Dazzling.

You certainly won't read this sort of stuff in any property textbook, so it's a super contribution to the Commercial Property forum on Somersoft - thanks! 5 stars from me.

Just wondering which lender came to the party in the end?
 
JIT said:
You certainly won't read this sort of stuff in any property textbook
Click to expand...

That's very true JIT.....but then you'd get the glossed over version with a slick operator, rather than the warts and all version with me.

I reckon novices trying to crack into the comm. market for the first time want the warts and all version - cos at the end of the day that's exactly what they are going to confront if they ever venture down this track.

But then, don't be fooled by what is written here. The stress and drama involved with purchasing is glossed over by my ramblings here as well. You are probably reading about 5% of what goes on behind the scenes.....hustling and pushing and cajoling is the order of the day....taking no for an answer is definitely not an option.

The biggest thing I can say from this experience is that Bankers are away with the fairies, and it's great having a MB as a personal buffer so you don't have to deal with them directly.

Anyway, if I've encouraged / inspired some of the folk who frequent here on the forum to come for a paddle in this different investment pond, that'll be satisfaction in itself. Plenty of fish to go around for all.


P.S. I've just shared a bubbly or two with the wife, and we were commenting although this was our "Everest", it's not something that you can share in social circles to vent the WOOHOO factor. Society dictates that you quietly and modestly go about your business, keeping everything under wraps to maintain a degree of modicum and decency. To hell with that we thought !!!
 
Really great to hear Dazz.I teased you a while back about being lucky and I want you to pick some lottery numbers for me.
Having only done resi deals..and that's enough stress for me (they are never smooth )I do understand that luck has very little to do with it. Being stubborn and like you say, NO is not an option.
Hope the next hurdles to the end of this deal are tiny ones.
 
Congrats Daz. 9 years from nothing to conquering mount everest is an inspiration to all on this board. Hope you stick around and keep posting up deals like this for all us to share and learn from :D:D:D

Oh yeah, and to hell with societies views and opinions. If we all conformed no-one would reach the stars like you have done.
 
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