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Discussion in 'Introductions' started by grossrealisation, 8th Sep, 2006.

  1. grossrealisation

    grossrealisation Active Member

    Joined:
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    sydney
    hi all
    new to these forums so go easy on a fledgling investor.
    I will pop thru and have a read from time to time.
     
  2. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Sydney, NSW
    GR,

    Welcome, you'll find quite a diverse range of topics discussed over here versus what you see elsewhere. It is still a fledgling site but I think it is growing its user base every day.

    Definately worth checking in regularly to see what's being discussed.

    Cheers,
    Michael.
     
  3. shake-the-disease

    shake-the-disease Well-Known Member

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    9th Jun, 2006
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    Melbourne
    I'm not sure about the fledgling investor part, your user name not to mention your writing style gives you away Im afraid. Welcome from another newbie (in both investment & invested forum)
     
  4. Jacque

    Jacque Team InvestEd

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    Sydney
    Hehe welcome Gross :)

    I'll promise to "go easy" if you reciprocate in kind by using all punctuation marks available in the english language. ;) :D

    Though the first post with fullstops is encouraging!!
     
  5. TryHard

    TryHard Well-Known Member

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    He he, yeah gross, that's not the most disguised nom de plume ever concocted (fullstop)

    Have fun on InvestEd :p
     
  6. perky

    perky Well-Known Member

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    15th Aug, 2005
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    Sydney
    That you Lawrence?
    Hope so.
    Please note on this site dots and sentences are required if you want to continue posting :p
    Looking forward to getting some posts from you that are not able to be posted on another site :eek: - and be flamed about it. I can understand why Somersoft want to stick to property only stuff (well it seems to be that way lately, even in the coffee room) - however you will find this site much more open to "alternative" type ideas.
    Now to get Acey over here with his "alternative" posts......
     
  7. TryHard

    TryHard Well-Known Member

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    Sorry I did not see your post on the other forum Perky - I would have stuck up for you ;)
     
  8. Sultan of Swing

    Sultan of Swing Member

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    Location:
    NW Coast, Tasmania
    Another newbie here! :D

    I hope to learn lots from all of you.

    Cheers...................... (<--- spare fullstops incase I miss one some time ;) )

    Cheers
    SOS
     
  9. Jacque

    Jacque Team InvestEd

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    Hi SOS and welcome to this forum! Hope to see you in here, imparting your lastest renovating adventures - especially on the block that you bought down there in Tassie. How is it all going? Tenants behaving themselves?!!
     
  10. Sultan of Swing

    Sultan of Swing Member

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    Location:
    NW Coast, Tasmania
    Thanks Jacque, I thought I'd venture across and see what else I can learn.

    It's all going well so far. I've still got all the same tenants and as all but one are pensioners I don't think any will be moving out soon. Well, maybe one, I've heard she's quite unwell and hardly gets out of bed.

    Three of the five tenants have been there for nearly 9 years now, including the one that isn't so well.

    I'm going through the process of having them strata titled. I'm still not 100% sure that it can be done but if it can I'll obviously be quite excited about it as it will create a large chunk of instant equity.

    Cheers
    SOS
     
  11. TakeStock

    TakeStock Well-Known Member

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    It's not a retirement village you've purchased is it?:D That's a very reliable tenant base you've got there.
     
  12. Tizzy

    Tizzy Well-Known Member

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    Location:
    Perth WA
    This reminds me of catching a plane to Bali, then walking down the street and bumping into your neighbours:D
     
  13. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Location:
    Sydney, NSW
    What she said!

    Welcome all you not-so-newbies... ;)

    Cheers,
    Michael.
     
  14. grossrealisation

    grossrealisation Active Member

    Joined:
    8th Sep, 2006
    Posts:
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    Location:
    sydney
    hi all
    I will be poping back every so often.
    as I am looking at moving into other markets.
    my time line has been shortened with my latest little purchase.
    so am looking at alternative market.
    and markets that I can trade while on the move long trades on shares and a mix of cfd's is my current aim.
    I don't mind getting flamed, I like it sometimes as it does show that the person has an opinion right or wrong.
    I am up at 5.30am so thats when I can read and send to boards.
    as most are aware I am ont a few boards and do check them out
    although that will be very restricted for the next 3 months until I have everything seated with arncliffe.
    here was the last chapter and will be the last for some time.
    I can later put a few photo's as they go but my projects are turn keys so I don't get involved unless they need help with financial management.
    I did try to put a few full stops in there also.
    Hi all
    With regards to this project I will now post the detail of this project as we have exchanged and are moving forward.
    the detail of this post is for information only and the numbers have been rounded up to make it clearer understanding of the complexity of this project
    The value of the site in 2003 was 10mil
    An option holder paid 800k for an option on the land to purchase the land at 8mil
    And proceeded to spend in excess of 800k in added option fees from that date today.
    The land owners had to hold there sites from then to today and has been paying holding cost in excess of 1.5 mil.
    And
    I purchased at 6,840,000 how did I get to the 6,840,000 easy 8,000,000 less the 800k deposit that’s 7,200,000 and les 5% as that’s the market movement down so 6,840,000 the site was purchased as a raw site with a da that is purchased each site separately.
    To negotiate this I used a real estate agent as my purchasing agent.
    Once the price was agreed we then had to reduce the deposit.
    The deposit was at 684k so we got it to 5% 342k then we reduced this to 100k and exchanged on 100k so in reality that’s a 100k deposit/exchange (with limited liability to the new lusty street development company only) on a potential 43mil end product site and a 34% return.
    Once we had a deal I also had to get the da and this was a job in its self.
    I did a deal with copyright owner of the da plans and got those assigned to the owner of the land and in return I get the cc plans done via an associated company.
    To get this thru I had also to negotiate a very sticky group of a legal mined field and to do that I negotiated that if you don’t sue him I will organise this, and then if you don’t get sued, then you will not sue him and around it goes.
    These are very difficult to achieve and are very protracted we went thru 5 sets on contracts as we changed this and then changed that,
    on top of that we have a vendor that has been told that someone was going to buy this property and all he sees if the moving of chess pieces on a commercial business table and its all to much to comprehend.
    After getting thru the legal mined field it was a case of get the deposit down which was achieved and then the deal was done.
    So I got 100k exchange on a 43mil site end value, with a fixed price contract and full lend for the major part of the construction and know have the da as well.
    And a happy vendor a happy real estate as they have followed this deal with great interest (the owner of the real estate was surprised that the accepted the 5% and then 1.4%) the time to get the reduction of 3.6% was about three weeks of negotiating but I am not paying anything put my time and it doesn’t tie up another 256k cash.
    Even the loan the broker that has organised the loan I negotiated the brokerage fee and brought it down to a rate that I was happy with and is under ½ % of the total loan.
    At 6,840,000 that’s 75k per site and the norm is 95k that’s a value of 8,645,000
    So for me it’s a good deal,
    The land mark white valuation is 7,200,000
    I organised a full Gross realisation loan valuation by landmark white is 39,900,000
    With a total construction Inc land of 29,000,000.
    now its onto presales and equity inputs

    For those interested why I do these deal I think that you may get that from reading a very good article Sydney morning herald good weekend 0ctober 7 2006 page 31 titled harder faster richer and why Mr Moses stays at macqarie, is very similar to why I do these deals

    not sure if to leave this in this section
     
  15. Chris.R_WA

    Chris.R_WA Well-Known Member

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    7th Aug, 2006
    Posts:
    113
    Location:
    Perth, WA
    Wow gross, thats very impressive. I always get a lot out of your posts - thanks.

    Chris
     
  16. handyandy

    handyandy Well-Known Member

    Joined:
    6th Jun, 2006
    Posts:
    312
    Location:
    Sydney Nsw
    Hi GR

    Well done. It must feel good to get to this stage. An onward and upward moment;)

    I don't understand the issue with the DA. My understanding from what you say you had to buy the DA as a seperate excercise, I assume from the holders of the option which had expired???

    The reason I am confused is that I was under the impression that the DA ones issued by council is site specific and as such stands regardless of who owns the property.

    Was it that you had to buy the plans only that related to the DA, thus your comments re the copyright owners?

    If this was the case I couldn't see it being as big a problem as you allude to as surely the architect/draft person who did the plans would be happy to continue with you in charge.

    Having said this I guess the people threatening to sue would be the option holders who paid for the whole DA?

    Cheers
     
  17. grossrealisation

    grossrealisation Active Member

    Joined:
    8th Sep, 2006
    Posts:
    25
    Location:
    sydney
    hi handy andy
    there was lots of issues but the da does go with the site as long as the architeck has been paid if not it goes with the person that applied for it until its paid.
    hair splitting but legal
    the option holder is holding thin air and lost 2 mil
    and the architech get the cc plans done so he gets some money.
    I had to buy separate to split the liability of costs legals again.
    I also had to get them to agree to sell this cheap and thats not easy.
    just a note for option holder or buyers you don't always make money.
    these are very sticky situation when you have multi groups involved
    and you have to get then to agree and this was the hardest that I have done about 8 months work all up and still not finished.
    talk soon
     
  18. Ali G

    Ali G Member

    Joined:
    7th Dec, 2006
    Posts:
    5
    Location:
    Melbourne, VIC
    Awesome story GR! Looking forward to your updates.