Paddling our canoe.....Mk II
- Thread starter Dazz
- Start date
Looks nice Dazzling. Good luck in your offer. 
Thanks for all of your good wishes. All we can do is give it our very best shot and hope to be selected to negotiate with the vendor.
One of my friends has been watching the whole pathetic process of us going up against the big companies and funds over the past 8 or 9 months via this nonsense E.O.I. rigmorale, and likened it to a game of blindfolded pinata (sp ??). The best you can ever hope for is to have a swing in the dark and hope for the best. Backroom deals, quiet whispers, cash incentives slipped to the agents....who knows what is going on, we are blissfully ignorant of everything.
Unfortunately, over a certain thresh-hold, none of the usual agents will sell properties via private treaty or auction - they all put it out to Tender, go via an Expression of Interest (the worst), or accept Offers to Purchase. All 3 methods suck big chocky rocks, as it gives 100% of the power to the vendor, and as a potential purchaser you are kept completely in the dark - unable to even be given the chance to negotiate with the Vendor.
If I popped my solicitor's hat on, I've probably already divulged too much, but I thought sharing the journey might open up some exciting possibilities for forumites of where all of this house and IP gathering may end up, if you just keep steadfastly applying the same principles. The "gearing ramp" can suddenly get quite steep, and this opens up some fantastic deals.
This property is worth about 170x what we paid for our first PPoR nine years ago. Co-incidentally, it rents out for 170x what the same property rents out for today......without 170x the headaches of dealing with residential tenants.
I'll let y'all know if they ever deem us worthy to talk to.
One of my friends has been watching the whole pathetic process of us going up against the big companies and funds over the past 8 or 9 months via this nonsense E.O.I. rigmorale, and likened it to a game of blindfolded pinata (sp ??). The best you can ever hope for is to have a swing in the dark and hope for the best. Backroom deals, quiet whispers, cash incentives slipped to the agents....who knows what is going on, we are blissfully ignorant of everything.
Unfortunately, over a certain thresh-hold, none of the usual agents will sell properties via private treaty or auction - they all put it out to Tender, go via an Expression of Interest (the worst), or accept Offers to Purchase. All 3 methods suck big chocky rocks, as it gives 100% of the power to the vendor, and as a potential purchaser you are kept completely in the dark - unable to even be given the chance to negotiate with the Vendor.
If I popped my solicitor's hat on, I've probably already divulged too much, but I thought sharing the journey might open up some exciting possibilities for forumites of where all of this house and IP gathering may end up, if you just keep steadfastly applying the same principles. The "gearing ramp" can suddenly get quite steep, and this opens up some fantastic deals.
This property is worth about 170x what we paid for our first PPoR nine years ago. Co-incidentally, it rents out for 170x what the same property rents out for today......without 170x the headaches of dealing with residential tenants.
I'll let y'all know if they ever deem us worthy to talk to.
Daz
You're an inspiration to us all. Please keep swinging - that Pinata chock-a-block full of goodies is definitely within reach!
Cheers
N.
How dare those evil vendors attempt to get the most they can for their property.
Sheesh, what a naive view.
Hey Daz,
I keep this quote close at all times, cause I never know when I'm gonna need it (I've needed it a whole lot lately, by coincidence):
'Success is not about brilliance. Success is about perseverance. Hanging in there is of far more importance than any other single factor.'
Thanks Kristine.
Yo Saucy, what's the point of your post? You sure know how to hold a grudge.
Mark
I keep this quote close at all times, cause I never know when I'm gonna need it (I've needed it a whole lot lately, by coincidence):
'Success is not about brilliance. Success is about perseverance. Hanging in there is of far more importance than any other single factor.'
Thanks Kristine.
Yo Saucy, what's the point of your post? You sure know how to hold a grudge.
Mark
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Sup Mark ?
I thought the purpose of my post was obvious, though it didn't involve back slapping so I guess its point will be missed.
Same here Joanna, but most of the time you don't even get the opportunity.
Last one we had a crack at, there were about 7 bidders. We were the top bid, but had one clause on the EOI - finance. 14 days to go unconditional. The agent carried on like a pork chop, saying that everyone nowadays only offers cash unconditional. If you don't have the full amount in cash to plonk down on the table - unconditional - they advise the Vendor to ignore you.
They didn't even let me speak to them. Oh well, we lost out on a good property, and the Vendor lost out on an extra 200K.....but I'm sure the agent was happy.
We are getting pretty sick of playing these b/s games with EOI and Offers to Purchase. Our banker is very much getting sick of it. We've never purchased a property with this method, and if this one fails again....that is, you have no clue what's going on and never get to speak to anyone (5 in a row now), we'll leave the area for good and go back to our old tried and tested method of actually talkign with Vendors and chopping the ridiculous agent's right out of the loop....in the end they aren't a party to any contract, we've found you only need a competent Seller and a competent Buyer for a transaction to proceed. Everyone else is just a hanger on.
Hey - and saucy - cheer up mate, life's good. I'm not looking for any back slapping. I'm hoping to share some of the experiences the wife and I are going through with the forum. There seems to be some interest in the subject matter. Good luck with your investing endeavours.....would always enjoy hearing what deals you have actually transacted, rather than obtuse comments from the safety of the non-playing sidelines.
Hi saucy,
I feel it may you that missed the point. Daz is quite obviously upset with the way transactions are handled - in that he doesn't even seem to get a chance to talk to the vendor. His gripe had nothing to do with vendors wanting to get the most out of the deal at all.
As pretty much everyone else in this thread has stated, we all enjoy reading about Daz's adventures in commercial property, so may I politely suggest if you don't like it, then don't read his threads. It's really not difficult.
Mark
At first I thought that photo was a joke.
Then I realized it wasn't. Wow... A whole building, thats neat.
Have to raise my blinkers from the purchase of a little box on a suburban piece of land and look skywards.
I have long thought sale by tender was the best way to go, even for resi property that has a bit of X factor about it, certainly better than auctions for the vendor anyhow.
170 x original PPOR purchase in 9 years, that's quite a journey. Is it like 70% commercial lending on the loan or something different? Would be a very interested reader of more details about how such a deal is put together.
Then I realized it wasn't. Wow... A whole building, thats neat.
Have to raise my blinkers from the purchase of a little box on a suburban piece of land and look skywards.
I have long thought sale by tender was the best way to go, even for resi property that has a bit of X factor about it, certainly better than auctions for the vendor anyhow.
170 x original PPOR purchase in 9 years, that's quite a journey. Is it like 70% commercial lending on the loan or something different? Would be a very interested reader of more details about how such a deal is put together.
