Paddling our little canoe against the big boys

Dazz

Dazz

Well, after dusting ourselves off from the last shenanigans trying to mix it with the big boys, where we got stomped on from a great height, we've decided to have a crack at another property that no doubt has attracted a lot of sniffing around from other players.

Offers closed last Friday, so we now all sit and wait for the Sellers to anoint their chosen party to chat with. There's no low balling or argy bargy with these guys.

You put your very best foot forward on the one and only attempt you have, and then hang on for dear life.

The Bank is supportive, so we'll see what comes of it. It's probably a 3 or 4 years timeline to turn the site around and get it up to speed with it's neighbours.

For all those in Perth, have a squizz at the attached, you might recognise the area.....(if I can ever learn how to do this hi-tech wizardry stuff).
 
Thank God buying property isn't as hard as doing this IT attach thingy !!!

Tried .pdf, got rejected, apparently 215 kb is too big.

Cut out a small bit of it electronically somehow, tried attaching that as a .bmp, and it lost all the details and somehow exploded up to 936 kb ???

Hahahaha...absolutely useless at this stuff....where's a good PA when you need one.

Oh well, I tried. Next step is to re-boot the computer, as my former roughneck once said "Yeah right, re-boot right out the window".
 
OK...I think it's in the Gallery....can a Mod or IT guru clean this kerfuffle up somehow with a link of some sort ??
 
WP_site_Page_1.jpg
 
With this method of sale, can't you put a slightly higher price than you are willing to pay in order to get control of the property with the seller picking you to start negotiating with first, but put a subject to due diligence clause or some other clause on it, and then during the negotiations, change your price/terms etc to suit you, and close the deal...?

GSJ
 
i take my hat off to you daz.

my stomach dropped in sudden fear when i looked at the photo. i don't know perth but looks a fantastic site ... it just gave me a scare even thinking about batting against the big boys for a site like that, and the dollars involved to bring it up to speed.

that's why you're doing it - and i'm not yet. go get 'em and keep us posted.
 
Yeah, I suppose she's not your average quiet suburban block of dirt.

The block has about 120,000 cars passing it every day, the most of any property in the whole state. The Freeway on and off ramps, for both heading north and south are right there, so you can come and go from both directions and lob straight into the place.

We are planning on not only charging an outrageous nett rent, but also signage rights on the buildings. Should be able to squeeze an extra $ 3,000 per week just for the sign hopefully.....small beer in the scheme of things but it all helps to make the mortgage repayment.

The politicians are not too far enough away, with Parliament being about 200m to the south.

The development we have lined up for the block is pretty snazzy, but worth a bit too much for our liking.

Apparently we will need to have a fully signed up Lease with a cracking tenant (maybe a big Govt dept or an emerging oil company) for ~ 20 years before we can actually start building the place.

Should keep the wife and I busy for the next couple of years....it'll probably lock me behind this office job of mine for a few more years yet though, so there is a negative side to it all.

Location and size of the dirt is attractive to us, so it satisfies our primary criteria.

Hoping for a phone call tomorrow for a decision.....the last time we offered on a place it started with the word "unfortunately"....hopefully this one doesn't go the same way with someone offering something outrageous to secure it. Will post if we get the nod....
 
hi dazzling
hope all goes well it a lottery when you get to these sites and hope the number comes out.
I have not seen the site but have been to the area when I was over there and has alot going for it.
is it a comm that is going into the site.
if so then yes maybe a bit of a push to get lending excited.
well done if you get it and post the figures.
 
AAAAAAAAAARRRRRRRRRRRRRRGGGGGGGGGGGGHHHHHHHHHHH !! :mad:

OK...that feels much better... :rolleyes:


Yesterday I received the inevitable "unfortunately" phone call.

Our submitted bid was super competitive...or so we thought..., 10% over current market value....'cos we could see some long term benefits in owning a site like that moving forward.

The agent - bless his little cotton sox, finally dribbled me some information. A total of 42 interested parties contacted him, with 6 parties submitting offers. We were ranked 5th out of the 6....:( Not even in the hunt. Some players are going completely over the top to secure prime dirt.


After being stomped on from a great height 3 times now in the past 4 or so months, I'm thinking of packing my bat and ball up and going home. The heat is way too hot in this Perth commercial kitchen.

I think we'll retract our horns back to our traditional heavy industrial hunting grounds and give this CBD comm. carry on the flick. The back blocks of the heavy industrial precincts aren't as glitzy as the CBD market, but just as lucrative.

Oh for a straight up public auction....these closed tenders and EOI with all of this cloak and dagger secret little whispering shenanigans are starting to give us the willys.

Oh well, back to the drawing board as they say.

Might starting looking elsewhere....nothing here in WA left worth chasing... - I see SA has some good stuff up our big dirty industrial alley. Xenia - might drop you a line.
 
Dazzling, what a exciting processs I feel. Although you did not get it, it is very exciting. Very inspired by you. I saw a residential block next to mine. I want to buy it. The owner wanted $5000 more. Should I pay to get it? It is a very good block.

Thank you for your attention.
 
We've kicked ouselves a few times for missing out on deals for the sake of a few grand. What sounds dear this week looks cheap next week.

If the dollars stack up for an earn on your project, and there are other interested parties, it would be a shame to miss out for the sake of a few grand.

But that's only my thoughts.

Bummer on the deal Daz, things do get a bit frantic when the sharks are circleing.

I'll stick to picking up the scraps, just need a few more of them though.

Boat Boy
 
Hi Dazzling

I have read some of the post here and what stands out is the fact that there is more good money (probably 10 to 1) than there is good investments.

That is how it is at the moment.

cheers
 
Dazzling on another post you referred back to the Aug '06 API article which I re-read last night. I'd love to head down this path but am trying to get my head around the loan against an untenanted patch of dirt (or a defaulting non-paying tenant even)... am surprised the banks would look at this - is it just a case of borrowing the money using other assets as security and hoping like heck you can get a tenant quick and recover your cash flows? I have heard of guys having commercial sites vacant for years at a time which I guess is what has put me off
 
Ausprop, it's just like buying a block of land really.

The REA called me this afternoon on this deal, as it has just settled, and hence he can reveal the numbers.

Someone bid 6.3M for it, cash unconditional.....leasing it back to the owners for 1 year at $ 200 per week. Yep, $ 200 per week. Outgoings alone on the block are about $ 1,600 per week, so it's going to be a tad negative for a while until they get the full thing up and running....maybe 3 years.

They plan on putting up an identical building to the IBM building across the road - just as we did.

Cost of the building is likely to be ~ 12M, but the rent achievable when up would be about 2M nett per year, so not too bad.
 
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