That is a big devvy site wm - you are going to have to spill some beans on that one for us whichever way it goes!
Well not so big - just the price tag
I'll let you know yay or nay
Just offered $265k below asking
- Thread starter handyandy
- Start date
Well not so big - just the price tag
I'll let you know yay or nay
It's a community service
Well my offer was communicated Wednesday and it seems someone else offered Tuesday. They started negotiating with that buyer before my offer and if they can't reach an agreement then will look at mine.
Something will be around the corner, if this doesn't come off.
You are already placing offers? With two dev sites under development?
You're a freak
You are already placing offers? With two dev sites under development?
You're a freak
Certifiably insane - I must ask Sim to add a Smilie of someone that looks more craaaaazy
I'm looking but not looking in Perth. It was a good site but if I don't get it then so be it. I'm supposed to be looking in Melbourne if I can get bloody Highgate approved.
Really, I'm just trying to make you look bad.
You are doing a good job of it
But for the record - I don't need any help in that department. Thanks
Blacky
Around 5% in the 1-2m range. Not much higher at the upper end, because LVR is usually low any way.
hmmm....
typical....you know so much of your 'playground'...ooppss..sorry...your playground is above $2m.....
Well made an offer but based on the current owner,, soon to be tenant, fixing or agreeing to fix at end of tenancy the brick wall that has impact damage.
The vendor has replied 'No'. Take it as is. He also makes some spurious remarks re Fair wear and tear. Does this mean that he sees crumpled fences and impact damaged walls as 'fair wear and tear'. What will this mean at end of tenancy - splitting hairs about every item of damage that his staff have caused.
Now in a normal purchase this wouldn't unduly concern me. I would make my decision and go from there.
In this case the vendor will be my tenant.
This is presenting me with all sorts of delemas as a decision to continue with purchase and repair wall ourselves could/would be seen as a sign of weakness and may not be a good foundation for the future LL/tenant relationship.
At this stage I am thinking I will reduce my offer based on the repairs required as the property stands.
Unfortunately, I can't reply yet as there are some issues that need certification and I want to see whether this proceeds or flounders. Also still haven't sited a contract nor lease so really there is no point getting to deeply into negotiations.
Cheers
The vendor has replied 'No'. Take it as is. He also makes some spurious remarks re Fair wear and tear. Does this mean that he sees crumpled fences and impact damaged walls as 'fair wear and tear'. What will this mean at end of tenancy - splitting hairs about every item of damage that his staff have caused.
Now in a normal purchase this wouldn't unduly concern me. I would make my decision and go from there.
In this case the vendor will be my tenant.
This is presenting me with all sorts of delemas as a decision to continue with purchase and repair wall ourselves could/would be seen as a sign of weakness and may not be a good foundation for the future LL/tenant relationship.
At this stage I am thinking I will reduce my offer based on the repairs required as the property stands.
Unfortunately, I can't reply yet as there are some issues that need certification and I want to see whether this proceeds or flounders. Also still haven't sited a contract nor lease so really there is no point getting to deeply into negotiations.
Cheers
Generally, you won't get to see a contract until you've agreed terms (well the important ones at least, contract is not required before going to market unlike resi). Likewise the lease, as the occupant is the vendor, they cannot create a lease until they aren't the vendor.
Bit anoying as you get some valuable info from a normal resi contract - sewage and drainage also on title there are some covenant which I still don't know about.
Last time I bought my factory unit I received contract immediately.
What sort of terms are you referring to. My offer was a 3 + 3, a net pa rental figure, certification of additions, repair of known damage to be included as part of end of lease fix and repairs (minor) that should be done now.
Sure the lease can't be created but I sure as hell want to have a copy that will be signed before I sign the contract of sale. I was thinking I would send my recently prepared lease to them as a 'sample'. It's not as sophisticated as Dazz's lease but I tried to get as much my way as possible. No doubt with a couple of more CR purchase under my belt and I will develop the same sort of lease.
Cheers
hmmm....
typical....you know so much of your 'playground'...ooppss..sorry...your playground is above $2m.....
I just did two CIP loans in the past 2 months. One which was $1m. Another was $2m. The $2m one was actually lower, but it comes with annual reviews etc. The $1m one was set and forget.
A few months before that, I did a mixed use of around $1.5m. It was actually in the 4s, but that was a fixed rate. And I threatened to walk if they didn't give me 4s. I suspect they're all very similar between $200k and $2m anyway, just maybe tougher lending criteria.
Bit anoying as you get some valuable info from a normal resi contract - sewage and drainage also on title there are some covenant which I still don't know about.
Last time I bought my factory unit I received contract immediately.
What sort of terms are you referring to. My offer was a 3 + 3, a net pa rental figure, certification of additions, repair of known damage to be included as part of end of lease fix and repairs (minor) that should be done now.
Sure the lease can't be created but I sure as hell want to have a copy that will be signed before I sign the contract of sale. I was thinking I would send my recently prepared lease to them as a 'sample'. It's not as sophisticated as Dazz's lease but I tried to get as much my way as possible. No doubt with a couple of more CR purchase under my belt and I will develop the same sort of lease.
Cheers
Can't the lease be subject to settlement of property?
joker...
Who are you trying to impress?
do you think people would believe all your stories???
Find a different playground....
Some of DBs posts may be perceived as arrogant but youre doing yourself a disservice by ignoring them imo. From memory he was the first on this forum, along with aaron c, to mention the big change in demand and price for inner melb property earlier this year.
Maybe you need to go back to playgroup. Obviously you haven't learned to socialise nor developed the perception to understand the level of experience that various posters have.
Handyandy, you've pretty much picked up on most things, just add rent review mechanism, (the Law Society Lease or a 'Dazz special' will pick up breach, outgoings, termination provisions etc).
For the info that you don't have, get a title search done, dial before you dig, S149 certificate (basic) - those should provide most of the info that you want. If you really need to, get a survey if you have doubts.
As for the make good - either offer $X less now and ignore it or have the lease stipulate an amount to be paid to repair such damage should it not be done prior to vacating (riskier approach should the tenant walk).
For the info that you don't have, get a title search done, dial before you dig, S149 certificate (basic) - those should provide most of the info that you want. If you really need to, get a survey if you have doubts.
As for the make good - either offer $X less now and ignore it or have the lease stipulate an amount to be paid to repair such damage should it not be done prior to vacating (riskier approach should the tenant walk).
HA, I've found these owner to tenant deals to be very hard work. It's hard enough negotiating the terms of a sale contract, let alone the terms of a lease at the same time. And are they selling because of financial difficulties within the business etc? Are they pumping up the proposed rent / term to artificially increase the sale value? Are you essentially buying a component of debt in the tenant's business?
To go down this track IMO you need to know your values inside out, have a Lease you're fully comfortable with and attach it to your offer so everything is negotiated at once while the deal is still in play. I've tried to do deals where we would negotiate a lease later and it's a month or two before you find out the whole thing was never going to happen... deals where the vendor has put their proposed lease on the table shut down discussions pretty quickly - they were just waiting for someone to agree to their terms and could afford to wait.
I hope you have better luck!
To go down this track IMO you need to know your values inside out, have a Lease you're fully comfortable with and attach it to your offer so everything is negotiated at once while the deal is still in play. I've tried to do deals where we would negotiate a lease later and it's a month or two before you find out the whole thing was never going to happen... deals where the vendor has put their proposed lease on the table shut down discussions pretty quickly - they were just waiting for someone to agree to their terms and could afford to wait.
I hope you have better luck!
Thanks Delta!
Are these deals you do as part of your job? Or are you saying you personally, at 27 or whatever, are doing these deals for your own portfolio? How much debt (ball park figure) do you have that you are responsible for? Must be a fair bit.
