On the hunt again

sensational work ... now ... that place in france ... :D

just a quick question if possible. how do you find the joints? do you troll the internet commercial sale sites (if so, what sites do you consider best?), or do you just put the feelers out to brokers and they come back to you, or do you find them another way?
 
Congrats..

Interesting thread not only cause you tell us **** othes don't but the way you tell the story.

Cheers and ejoy..
 
Thanks everyone for your thanks. Hopefully you glean something from it. Obviously the nitty-gritty detail is not there, but it's all I can give without getting into trouble.





lizzie said:
sensational work ... now ... that place in france
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Yes, yes....the place in France.....well, that went straight out the window with this purchase. Wife and I are still keen to go over there and have a squizz, but it will probably be for just a holiday rather than to buy now, but we still can't get over how incredibly cheap it is....we just don't know the true legal situation and therefore feel we are on shaky ground. Maybe you buy the joint, and I'll be your butler ??

lizzie said:
how do you find the joints? do you troll the internet commercial sale sites (if so, what sites do you consider best?), or do you just put the feelers out to brokers and they come back to you, or do you find them another way?
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http://www.realcommercial.com.au/cgi-bin/rsearch?cu=fn-realcom&a=sf&s=wa&t=com&snf=as&sl=&ag=

plus, sift thru everything the agents constantly keep throwing at me. Once you actually buy a place, that agency keeps you on the "they've actually bought something before" list and you get most things thrown at you.

plus, drive around looking at old signs. Most of the dodgy stuff we buy is old stock left festering on the shelf. Normally the agents and sellers are so relieved to actually have some interest at long last, they are malleable to any offer. This one was like that.

We hardly ever go for the highly publicised, glossy brochure, national auction type places, cos they all command premium dollars.

Picking over the scraps that other investors have left is our current modus operandi. Not very dignified, but some screaming bargains to be had.
 
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As with the other posters above- Congratulations and thanks for sharing

Dazz said:
plus, sift thru everything the agents constantly keep throwing at me. Once you actually buy a place, that agency keeps you on the "they've actually bought something before" list and you get most things thrown at you.

plus, drive around looking at old signs. Most of the dodgy stuff we buy is old stock left festering on the shelf. Normally the agents and sellers are so relieved to actually have some interest at long last, the are malleable to any offer. This one was like that.

We hardly ever go for the highly publicised, glossy brochure, national auction type places, cos they all command premium dollars.

Picking over the scraps that other investors have left is our current modus operandi. Not very dignified, but some screaming bargains to be had.
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...The above could almost be a post from Nathan ;)
 

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Dazz said:
plus, drive around looking at old signs. Most of the dodgy stuff we buy is old stock left festering on the shelf. Normally the agents and sellers are so relieved to actually have some interest at long last, the are malleable to any offer. This one was like that.
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Great post Dazz -love the conductor analogy.

Do you every go straight to the vendor and cut the agent out on an "old" listing (or multilisting)?
 
Dazz,

With my recent API magazine subscription renewal, I received on Friday a gift copy of Michael Yardney's "Thriving not just surviving in changing times".

I'm halfway through reading it. Michael describes levels of investor and levels of wealth. What your doing, Dazz, puts you at the highest levels. (Along the same lines as Winston wrote just above,) Thank you for sharing stories of how it is as I'm sure it is helping many others who aspire to similar levels. Great stuff.

regards,
 
hi dazz
could not have point it better myself
have not look at it as a music piece but you are so right
people think that just because they have a pm3 that its just put together and the people that put it together are not the real players
but in a deal these people are the no the players
they are they the people that put the player together
and yes it is an art
you can't put a deal together without someone that is an artist in what they do
I tell receivers that its very much like a rembrant
and in some deals the amount we are talking is over the price of a rembrant
yes deals are deal and some are small and some are large but its the same for any great painter or inventor
most people see a deal as just a deal
but for me I put it as a cake (or soup)
in that a cake just does not appear
it need ingredience
it needs temperature ie an oven
but it also need a chef or cook
and it needs a client to buy it
and it needs the money to bank roll it
take anyone of these out
and you do not have a cake
you have guew and nothing that looks like a cake
the main part to a deal
is not the deal
nor is it the vendor(they want an amount of money)
nor the legals they just want paid
its the time line
and the amount along that time line that all will agree to pay
now that time line is a virtual time line as it always moves
and changes as different things change it.
but the main person is the person controlling that time line.
the center point
the conductor in the example
in any deal there is only one center point
there can't be two
and everyone knows where they play(and if they don't then let them know)
the trouble is not the band or group
its getting them to play together and this is alot of fun
some don't want to play and the band falls apart
I have not looked at it from this point of view but its very similar
not sure where I sit
 
Dazz said:
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.
.
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There would be a few more pages for your book in this post Dazz,very different from other property investing the system you have in place,something you can only learn from experience..willair..
 
congratulations Dazz.
You might want to wait a while for it to warm up before traveling to Melbourne. Just arrived this week to Woodend..and chilly.
 
......this thing is taking forever.....the thrill of the chase has turned into a skankey old carcass.


Bank is taking forever to get it's act together. We released the finance clause about 6 weeks ago and headed into unconditional territory.


They finally stopped playing clever little lawyer games and actually wrote me a letter yesterday saying they would actually give me the money. Jolly good, a letter bereft of all of the usual "subject to" tricky little get out clauses.


It would of been a fairly sticky situation without it.


Family members are stumping up the cash to participate, the wheels are turning nicely. Still a few weeks until the deal crosses the line, but it's downhill from here I'd reckon.


Trying to paperwork from the Bank is nigh on impossible. It is by far and away the biggest hurdle in any completed deal I find. Our MB does a great job, but the plonkers at the Bank really do leave alot to be desired. They don't get any more qualified or competent as you go up the food chain unfortunately.


I very enjoy dealing with the principals of the business, they are the go-getters of the world and actually have the chutzpah to get things done. Dealing with employees is, in the general, painful.


Vendor is being very nice, lining all of the details up still and running the show well. We are just about to inherit our first liquor licence, so I've been learning the ropes of the legislation with the Director of Gaming, Racing and Liquor. All good stuff.


This property will be the last for a very long time me thinks. Might give it a rest for a decade or so and let the incomes roll in and the LVR's cruise back down. **


** Subject to change next week of course.
 
Dazz said:
We are just about to inherit our first liquor licence, so I've been learning the ropes of the legislation with the Director of Gaming, Racing and Liquor. All good stuff.
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Nice! This could be the "Ace up the sleeve", although I hate to think of the responsibilities.
 
Dazz said:
I very enjoy dealing with the principals of the business, they are the go-getters of the world and actually have the chutzpah to get things done. Dealing with employees is, in the general, painful.


Vendor is being very nice, lining all of the details up still and running the show well. We are just about to inherit our first liquor licence, so I've been learning the ropes of the legislation with the Director of Gaming, Racing and Liquor. All good stuff.
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That's well done if that was part of the start deal,and there would be a very large capital gain component if you ever had the cash the "LL"
in ,just another page in the your Book Dazz..willair..
 
Dazz said:
Vendor is being very nice, lining all of the details up still and running the show well. We are just about to inherit our first liquor licence, so I've been learning the ropes of the legislation with the Director of Gaming, Racing and Liquor. All good stuff.
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Good luck with it. It sure is a very lucrative business to get into.

Dazz said:
This property will be the last for a very long time me thinks. Might give it a rest for a decade or so and let the incomes roll in and the LVR's cruise back down. **

** Subject to change next week of course.
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The more I get involved in the business of investing the more I find myself getting addicted to it. My mind just automatically starts dealing with numbers and percentages most of the time in whatever I deal with (Walk into a shop, mall, real estate agency, news, stocks etc.).

I am yet to reach my initial goal but I have already started thinking about the setting new goals once I reach my initial goals. (Seems like I am getting ahead of myself and behaving a bit over confident assuming that I will definitely reach the initial goal within the timeframes I have set out for myself :eek:)

Cheers,
Oracle.
 
Well, another week has ticked by and we are now in the stadium with the final lap to complete. The Bank is actually starting to get interested, and has started asking questions about the deal.


They are still in risk mode, seeing what else they can palm off to me and dump in my lap...just to squeeze the very last drop of risk off their plate and onto mine. There is no 3rd plate.


Mortgage papers have been signed and returned. They have them back in Sydney, so lets see if they disappear into storage again without getting registered this time. Only dealing with one big green title deed, but wouldn't put anything past them mucking it up.


Managed to get a nice 5 yr interest only deal, which was above expectations....that should settle down nicely and tick along. We'll see.


LVR was 65%. We pushed for 70%, but the Bank thought we were dodgy - fair enough too. Coming up with 35% plus stamps is a big ask.....I've never been involved with this much cash. It's like the Mafia on steroids.


Transition with the Tenants has been strange so far. Big company Vendor doesn't want to tell anyone until it has settled, but I need to invoice them for November's rent as of a couple of days ago, so they pay by the 1st....so that ha sbeen interesting to argy-bargy.


Just lined up insurance. Vendor was paying 8K pa, we have no stroke cos we are tiny in comparison, so it'll cost us about 12K pa. Still haven't got the certificate of currency as yet, get that tomorrow, so can give to the Bank...they've been sweating on it a bit.


Settlement agent has asked me to be there at settlement so I can verify all documents. Only been to one of those in my life and it was a complete dogs breakfast, so hopefully this one runs smoother.


Tried to transfer a bunch of money today, but got locked out of the IT system. I just love IT passwords that expire automatically. The IT administrators must laugh all the way. The only thing the locks and barriers and hurdles they put up do, is stop legitimate people from accessing their accounts. My pet hate at the moment.


Calm before the storm. Property inspection with the wife and parents later this week. Not like a house thing. The Vendor's contract has tied us up in knots....so no recourse against them. It's "as is where is" all the way. We got it for a steal, so don't mind really. As long as the land doesn't shrink, or run away, or the buildings are flattened by bomb or earthquake we'll be apples.


Tick tock tick tock, 1 week and counting.....
 
Dazz, good luck with the settlement. From reading your post, I gather that settlement will be Monday, and there is a chance that some of the tenants may have already paid their rent, in which case you will have to adjust at settlement. How many days prior will the sellers side give you settlement figures?
 
Hi Pete,


As you know, on the actual day of settlement, the Vendor is entitled to all of the rental monies.

We wanted to make a clean break of it, so wished to settle on the 31st of October, such that the Vendor was entitled to all of October's rent, and we were entitled to all of November's rent. Limits confusion and avoids adjustments.

As usual, best laid plans are thwarted, as the 31st this month is a Sunday.

We agreed to move it to the 1st, and cos they are a massively huge organisation, they agreed that the tiny amount of rent for that day wouldn't be missed, so we made a special clause in the contract whereby if we settle on the 1st, there is to be no adjustment of rent, and we as Buyers are entitled to collect it all.

If settlement is delayed for whatever reason, then it reverts back to normal. A small incentive for us to hustle up and get everything squared away so settlement can occur as planned. Bank of course, couldn't give a rats and marches to their own drum, so there is no guarantee settlement will take place as planned.

Tenant's have already been issued with our bank account details, so 'the rabbits', as I like to call them, the ones who pay well before the 1st, have somewhere to pay.
 
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