On the hunt again
- Thread starter Dazz
- Start date
Sim
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That's a built-in anti-shouting feature of the forum software.
So that was the eye passing over.
We are now out the other side, with a legally binding contract on both parties. Here we go with the heel and toe.
Contract has 3 conditions on it, a finance clause from our side and two sets of approvals from their side (one from their Board and one from their Bankers).
Somehow they all have the same sunset date, so she'll be an interested day when that ticks over and we either head off into the sunset amongst the nothingness and I can throw 3 months of my time and two foolscap folders worth of DD into the bin......or we head on into that scary unconditional zone from which there is no return.
Now it's full bore hammering the Banks to give a decent response. So far we've only had two 'responses'....and not likely to get any more. The rest (about 11 have been approached) all just laughed and said the property was rubbish, the 17% yield was way too low, I was far too dodgy to deal with and they wanted nothing more to do with it.
Those two 'responses' were more like quiet fireside chats with a trusted uncle, with words such as ;
- "this is merely a discussion paper"
- "it does not constitute an offer"
- "no legally binding obligation on the Bank has arisen"
- "we may at any time amend or withdraw all or any part of this document"
- "do not consider this an offer"
- "no liability is extended"
- "terms are indicative only"
- "the Buyer must not rely on anything within this document"
Do ya sorta get the picture that they are a tad non-committal ??
So this is where we are at, and as far as the Banks know, the finance clause runs out on Friday. They don't know we have extended it....cos if they find that out, they'll just ignore us for another month or two.
Sorry if I'm boring anyone....you've all probably fallen asleep by now. The process certainly isn't exciting or adrenalin rushing is it ?? Grass growing comes to mind - that and beating your head against a bank wall.
It won't happen overnight, but it may happen **
** Subject to various Bank clauses which cannot be disclosed by the Bank.
Nothing boring here Dazz.
Hopefully one of the two that responded will come through.
Do you even bother with mortgage brokers when dealing at this level?
Do you have a plan B (or whatever plan you are up to on this one) if none of the 11 come up with what you need?
Hopefully one of the two that responded will come through.
Do you even bother with mortgage brokers when dealing at this level?
Do you have a plan B (or whatever plan you are up to on this one) if none of the 11 come up with what you need?
That's seems to be a lot of work if the deal just falls over,but the question i wanted to ask is what do the Banks in interest terms%%lend for the business you are in,i guess what one may consider a risk another may not,willair..
Thanks for that,just still trying to understand the whole picture i hope it works for the both of you..willair..
i'm in ... can probably manage more than $40.
I'm good for $20, if you're interested in part-shares, and as long as I don't have to put it up until after next pay day...
It's not as crazy as it sounds, there is a lot of private cash around at the moment. You could put a syndicate together, also take a management fee,
you could be 30% owner, raise 30% private investors, borrow 46% private funds lender, as manager you get % of rent paid to you, plus your own share of course
you could do this over and over and with no funds of your own in some projects and just collect the management fee which could be a % of ownership, a set fee, % of rent and growth etc, many ways to skin a cat
What? Good grief. How frustrating.
hehe...show us ya AFSL!
Boods
i wasn't talking about me doing it, i was talking about dazz putting it together.
However u don't need a license for the syndicate as long as the funds raised are $2m or less. So if property was $10m u could have two different syndicates putting in $1.5m each, dazz putting in $3m and borrowing the rest and no license would be required. It would be considered 'closely held' and avoid the requirements of a license.
big market for this type of stuff especially when self managed super funds can buy one of the units in the syndicate
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i think u can get around most of that stuff.
4% management fee and a success fee of 50% of any return over a set percentage would be easier to sell
minimum investment $80k and no authority in decision making, get a 1/4 update and yearly meeting
u make the director of the management company a 'straw man' or woman and u act on a consulting basis
i still believe it has legs and lots of them
people have lost faith in handing over the $$ to super funds and managed funds
No worries Bigtone...I understand the process...I'm probably coming accross a little miffed as I have spent the last month or so trying to find a loophole that will enable me to legally raise funds for a couple of developments I have my eye on at the moment and without fail, every avenue I lead down always comes back to the need for an AFSL to do it legally. (for the amount I am looking at)
The Corporations Act 2001 is riveting stuff and very convoluted...great bedtime reading
...and you're right, there is a fgood market for this stuff at the moment...lots of distressed devvy site sales and banks are'nt lending for these types of deals...perfect private funding/syndicate circumstances...
Boods
