Toe in the water
- Thread starter Ausprop
- Start date
absolutely
Absolutely awesome Kevin!!!......i'm inspired; so much so that i'm stepping away from resi after the latest cash cow gets built in Karrachi. Am sifting through comm & indust stuff in Qld now. Just waiting to resolve 'work' issues which should make it all easier to facilitate. Anyway, warmest congrats to you and Ausprop.
On a serious note, never mind the numbers and profit margins.......who's getting the penthouse??? Although knowing you there won't be any arguments; you'll just build two.....easy fixed
Looking forward to any updates you get to post.
Cheers,
Ian.
On a serious note, never mind the numbers and profit margins.......who's getting the penthouse??? Although knowing you there won't be any arguments; you'll just build two.....easy fixed
Looking forward to any updates you get to post.
Cheers,
Ian.
Hi Ozprep
No, I bumped in Ausprop in 2004 and not via this forum.
We had a common interest in developing resi property back then so we were comparing notes, and then investing in tandem in Karratha and Perth but not in any jv capacity.
Thanks Redwing for the congrats.
Hey Ian, thanks mate.
Yes I know what you mean about Karrachi and resi building.
We have three display houses to build then we will look for other markets as well.
I heard that 'Qld' was calling you as well... choose 'life' mate, give the NW salt mines away.
At this stage there are 7 resi units in the development of which only one is a 3 bedder so not quite a pent up house.
I have urged Ausprop to start a new thread with a more appropriate title as the toe is well and truly dipped and we are now up to our necks in it !!
No, I bumped in Ausprop in 2004 and not via this forum.
We had a common interest in developing resi property back then so we were comparing notes, and then investing in tandem in Karratha and Perth but not in any jv capacity.
Thanks Redwing for the congrats.
Hey Ian, thanks mate.
Yes I know what you mean about Karrachi and resi building.
We have three display houses to build then we will look for other markets as well.
I heard that 'Qld' was calling you as well... choose 'life' mate, give the NW salt mines away.
At this stage there are 7 resi units in the development of which only one is a 3 bedder so not quite a pent up house.
I have urged Ausprop to start a new thread with a more appropriate title as the toe is well and truly dipped and we are now up to our necks in it !!
Guessing propertyinvesting.com ???
Brilliant feature article in today's newspaper John.
You and Kevin should be very proud of your achievements. The feature pictorial incorporating the actual streetscape with the proposed building superimposed looked outstanding. You are going to make a motza on the commercial rents.
Was in the area and drove past the site yesterday, noticed that the neighbours are thoroughly enjoying being able to park all over your site unhindered. I'm sure they'll be sorry to lose their free parking.
Can't wait to follow in your footsteps. Wildly jealous. Onya.
You and Kevin should be very proud of your achievements. The feature pictorial incorporating the actual streetscape with the proposed building superimposed looked outstanding. You are going to make a motza on the commercial rents.
Was in the area and drove past the site yesterday, noticed that the neighbours are thoroughly enjoying being able to park all over your site unhindered. I'm sure they'll be sorry to lose their free parking.
Can't wait to follow in your footsteps. Wildly jealous. Onya.
Thanks Dazz
John is o/seas for a few wks so will probably not reply ( unless he gets to an i/net terminal)
Full kudos to the architect for the brilliant job. I would recommend him to anyone.
He has also set up meetings with a couple of the larger commercial builders in town who are keen to come on board.
The lender also came over two weeks ago and suggested they would fully fund the build subject to some presales being put in place which was a pleasant surprise, especially in the current climate where we thought they would cut back on their lvr's for the project.
They view it as a very strong project and obvoiusly want to retain the business.
The meeting was concluded with a couple of passes to join them in the corporate box for the Weagles vs Bombers match at Subi Oval.( beats receiving a "thanks for your business" card in the mail I guess)
The final kicker is that we have negotiated some extra plot ratio for a favourable price which will mean another commercial floorplate in the building.
AS far as following in OUR footsteps??
You've been in that position for a while so just push to GO button and jump in...
John is o/seas for a few wks so will probably not reply ( unless he gets to an i/net terminal)
Full kudos to the architect for the brilliant job. I would recommend him to anyone.
He has also set up meetings with a couple of the larger commercial builders in town who are keen to come on board.
The lender also came over two weeks ago and suggested they would fully fund the build subject to some presales being put in place which was a pleasant surprise, especially in the current climate where we thought they would cut back on their lvr's for the project.
They view it as a very strong project and obvoiusly want to retain the business.
The meeting was concluded with a couple of passes to join them in the corporate box for the Weagles vs Bombers match at Subi Oval.( beats receiving a "thanks for your business" card in the mail I guess)
The final kicker is that we have negotiated some extra plot ratio for a favourable price which will mean another commercial floorplate in the building.
AS far as following in OUR footsteps??
You've been in that position for a while so just push to GO button and jump in...
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fantastic thread - thanks for the inspiration, and it has left me lusting for more.
i've got a few questions - but if you don't want to answer then that's okay. i know with dazz he bought something already existing so he could see and near end in sight of having to fund his holding costs so i'm curious.
how much (percentage wise) of a deposit did you guys have for the initial purchase?
how did you orginally make this deposit monies? was is via your resi developments? if so, did you sell or refinance?
how are you funding the holding costs while going thru council etc? is it out of cashflow, or are you accumulating the ongoing costs?
hope i'm not being to personal - i find the "getting my head around" the initial funding and holding costs stage is what puts a tremble in my fingertips.
i've got a few questions - but if you don't want to answer then that's okay. i know with dazz he bought something already existing so he could see and near end in sight of having to fund his holding costs so i'm curious.
how much (percentage wise) of a deposit did you guys have for the initial purchase?
how did you orginally make this deposit monies? was is via your resi developments? if so, did you sell or refinance?
how are you funding the holding costs while going thru council etc? is it out of cashflow, or are you accumulating the ongoing costs?
hope i'm not being to personal - i find the "getting my head around" the initial funding and holding costs stage is what puts a tremble in my fingertips.
well not overly good! the valuation went up nicely when we got DA and things were ticking along beautifully. Then the GFC came knocking and the banks stopped lending. So in a nutshell, despite very large profits being obtainable (even in today's realistic crunched numbers) we can't get to the otherside. normally we would be in the same basket case situation as every other developer around town that is leveraged and sitting on vacant land (basically waiting for the bank to put them out of their misery) but we have been very fortunate to find a parter that, whilst benfitting from our losses, will still allow us to get to completion. Looking to wrap that up asap now.
All very frustrating. access to cash is the key, if I had that I could have built this thing and be retired by now.
so a huge education - mostly a lesson in over extending. certainly given me some good grounding in commercial. My comments in the other thread about the tips fromt he hugely wealthy individual I met has given me food for thought and I wouldn't take this on again in hindsight. Still when we went into this the world was a different place. back then a $3m cash offer on a house with $100 in the bank didn't seem out of the ordinary!
All very frustrating. access to cash is the key, if I had that I could have built this thing and be retired by now.
so a huge education - mostly a lesson in over extending. certainly given me some good grounding in commercial. My comments in the other thread about the tips fromt he hugely wealthy individual I met has given me food for thought and I wouldn't take this on again in hindsight. Still when we went into this the world was a different place. back then a $3m cash offer on a house with $100 in the bank didn't seem out of the ordinary!
So true, it's worth repeating.
I often hear people say that "if the deal is profitable enough, you'll find somebody to finance it". Well, I don't know what sources of finance they're able to access that I'm not, but I find this is simply not true. (But if somebody can tell me where to find this finance nirvana, I'm all ears.
) I suspect there are enough lower-risk ventures, where people have cash to contribute, out there for lenders to finance, such that they don't perceive a need to extend into lending to people without substantial cash in the deal.
