On the hunt again

Contract has 3 conditions on it...they all have the same sunset date, so she'll be an interesting 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.

.....and that day is today.....and it was very interesting !!!

Fortunately, we don't need to chuck 3 months of solid, full-on work in the bin.

The hunt to bring down the elephant was successful. The Bank provided the big spear and we did the rest. Plenty of meat to feed the whole family for a decade.

We get to wander off into that pleasant nirvana of unconditional bliss. That zone where everyone twiddles their thumbs until settlement day. Joy.

Time to go on hols I reckon. May choof off to Melbourne and see the sights.

It only happens a few times in your life, so when they do come around, it's worth celebrating.

I'm off down the shop to buy our usual big carton of chockie milk. Bonza !!!
 
Congratulations!

Love your work! Enjoy an extra choccie milk for us...

Thanks again for sharing for those of us wanting to follow on through these shark infested waters... :rolleyes:
 
Well done big game hunter! now that you almost have the elephant tusks and umbrella stand how long do you think it'll be before you're chasing a whale? :D;)
 
Excellent, Dazz! Now, if the Dockers had prevailed as well I'd be really really happy! :(

Didn't really expect that they would - next year they'll be a force to be reckoned with! ;)

cheers
 
Thanks for your kind words and thoughts.

Sharing something like this amongst fellow Landlords, which in normal life must be kept secret, is cathartic. You all know the rush, it doesn't come along very often. Savouring the moment and all that.

Now it's a case of tying up loose ends ;

  • Insurance
  • Depreciation reports
  • Settlement hustling
  • Paying stamp duty....urrrgh....there goes a nice 4 br house to the Govt
  • Introductions to the Tenants
  • Setting up bank accounts
  • Make another column on the XLS

Settlement is a while away, so relatively easy going for a while.

Called up the parents to give them the good news....they are a little overwhelmed. They have roughly 20% of the venture and laughed to say they had no idea they were going to be making all of this money at this stage of their life. Pays for the golf fees I suppose.
 
Thanks for your kind words and thoughts.

Sharing something like this amongst fellow Landlords, which in normal life must be kept secret, is cathartic.

Well happy release. No need to play small here Dazz to not intimidate or offend others ;) Sharing can lighten the load sometimes, however some people would see it as boasting.

There are plenty on this board that use your examples as impetus and momentum to overcome the intertia that takes hold from time to time (whether one's focus resi or CIP). Keep it up and keep the posts and examples coming


...............Called up the parents to give them the good news....they are a little overwhelmed. They have roughly 20% of the venture and laughed to say they had no idea they were going to be making all of this money at this stage of their life. Pays for the golf fees I suppose.


Congratulations on your purchase and, moreso for involving your family on this journey. Great stuff :)
 
Nice work (as per usual) Dazz.

It must be a nice feeling to know you are assisting your parents in this way as well........perhaps some sort of payback for sacrifices made when you were younger (I'm assuming that part). Regardless...nice work all round.

Regards
Marty
 
A lot of us see the results (lots of CF+) but not the 3 months of hard work.

Can you elaborate on what happens during that 3 months? Is it all just reading and re-reading contracts, leases, sourcing finance, etc? Or is there more too it?
 
Nice work (as per usual) Dazz.

It must be a nice feeling to know you are assisting your parents in this way as well........perhaps some sort of payback for sacrifices made when you were younger


Yes Marty, it has been excellent....and yes, like most kids, we owe a huge debt of gratitude to our parents.


Late last year we put a deal together to buy a Sydney office on Pitt St with the whole family (8 adults in total). There was a bit of trepidation with all of that "don't mix money and family" thing that is so well documented.


Fortunately, we approached it in a mature manner, split everything meticulously down the middle and everything went swimmingly. It helps that there is nothing to do and nothing to pay except the initial upfront investment. The only sign they own it is when I lob the excess cashflow into their bank accounts every month.


That gave us confidence to tackle another project together. Unfortunately one of the sisters and her hubby had to pull out due to personal circumstances, so it's just the six of us this time.


This one should produce even more free cashflow than the last one, with a definite upside of capital gains. The distressed Vendor paid 4m more for it a couple of years ago than what they sold it to us for. They bought it on a very acceptable gross yield, but onsold it to us with a thru-the-roof 17% gross yield. Gotta be happy with that.


Anyway, the parents won't have to be relying on the pension or super, that's for sure. As the decades roll by, that should take a future load off our shoulders as kids.
 
Can you elaborate on what happens during that 3 months?

Not really Rob. It would be like you writing down bit by bit for the last 500 days exactly what you have done. Even if you did all that, it'd wouldn't be any good to anyone, as the things that are missing, like being Johnny-on-the-spot, "seeing" opportunities that others gloss over during their internet searches, like using the appropriate tone and inflexion at precisely the right moment to get the deal over the line, like hustling up all of the contractors and players who make the deal come together, would kill the deal stone dead.



It's been my full time job since July last year bagging these last two for the family. It won't be over until probably mid Nov, so that's 16 months all up, full time, for two deals. Not many people would be prepared to put up with the nonsense and frustration (especially in today's Banking climate) that you absolutely must wade through to get over the line.


Is it all just reading and re-reading contracts, leases, sourcing finance, etc? Or is there more too it?


Yes - heaps more. It's a lot like conducting an orchestra to make a piece of music. A couple of individuals banging away on a drum in the corner, a couple over yonder twiddling on a flute, someone scratching away downstairs on a violin, another person who was supposed to turn up to play the French horn but didn't show.......

As the deal maker, you've gotta be the conductor up the front, bringing all those different specialists together who couldn't give a rats about each other, to actually ;

(a) Turn up
(b) Turn up with their instrument
(c) Turn up with their instrument with a happy disposition
(d) Turn up with their instrument with a happy disposition and play when told to

Most of the job is organising and hustling, cos I can't play any of the instruments.


Meanwhile, in the audience, you've got two very harsh critics ready to tear to shreds the ensemble you are trying to co-ordinate.

Firstly, you've got the Seller who is going around listening to other orchestra's.....one wrong note out of key, one wrong stanza cos the woodwind section didn't show up, or a motley performance which started too late and they walk off to listen to someone else.

Secondly, you've got the Bank, who's in charge of ventilating the auditorium so everyone can actually breathe. If they bugger off and don't do their job, then everyone simply falls down and dies....including the Seller.


Your question Rob entailed some of the tasks necessary of a conductor.....but I cannot teach you how to put together a good concert....that's up to the audience to decide.....and like a real life concert, you'll only know right at the very end whether you were a flop or a success.


Mores to the point, every single piece of music is uniquely individual, working out how to successfully play one piece is no guarantee that the next won't be a complete flop.
 
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