Forum Replies Created
Yep,
Once they are locked down with signed up 3 or 5 year leases, there really is not a lot to do.
All the hard work is in preparing the building, locating and negotiating the lease terms and conditions and finally getting them sign on the dotted line. Once you are at that stage, we see little benefit in palming it off to “managing agents”…the tenants simply go about their business and I always make a point of saying to them, as long as they pay the rent and all of our property expenses, they won’t hear or see us…and they shall be free to go about their business and make as much money as possible without interference from the Lessor. They seem to like hearing that.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Redwing,
Called up about the seminar this morning to book myself and the wife on. It’ll be our first seminar ever.
Trouble was, as usual, got a recording and after the “leave your details after the beep” tripe, a Telstra message came on saying the voicemail messagebox was full, so we are currently stranded. We presume it’s booked out.
Oh well, we’ll try again next decade.
Don & Liz (which one is it….you both can’t be typing ??),
Yes I suppose there is a general trend that the props get a bit more expensive as you move on…inflation obviously plays a small part here but generally the IP’s become a bit bigger which in turn hopefully attract a more financial competent and stable tenant.
Our most recent acquisitions are probably 12 or 13 times as big as the first few we purchased, so the factor does get cranked up a bit. This is deliberate, both from a better tenant standpoint, but also our group couldn’t think of anything worse than wet nursing 50 or so residential tenants and all their associated whinging. Much rather manage 1 or 2 large industrial tenants who just get on with their business.
In terms of plans, next move is commercial – hopefully some well placed CBD office block on the Terrace loaded to the gunnels with high flying tenants itching to fling gob loads of nett rent at us.
Hey – this is getting pretty serious for a “Forum Frolic” session….doncha think ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Don & Liz,
Does the data extend beyond just the number owned to the median price of each prop ??
I’ve expressed my opinion on this forum before on this subject, but a chap who owns 20 props (little $50K units) with a 900K debt would qualify as having a large portfolio by the above criteria. In reality he has a rather small exposure to the market and an even smaller equity position.
His friend might have only 2 props, but owns each one outright and worth $10MM each. By the above criteria he’s a small fry and not worth looking at.
This is obviously skewed, but you get my drift…I know which one I’d rather be having a chat with.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
1. Both the wife and I are 35 and have been investing for 12 years.
2. We have a goal of retiring from work in April 28th 2007.
3. The financially free thing is a bit subjective and dependent on how we restructure the assets. We could pull the pin now and live in a debt free PPOR with income of $ 150 K p.a., without eating into capital, but then where is the fun of that ??
We have other plans that involve financially controlling big chunks of the Perth CBD. Giving ourselves the next 60 years to achieve this, we reckon we’re about on track. We won’t be happy until the Dazzling label is slung across the top of the old R&I tower.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Holy smokes Tools…
We only paid $ 114 / sqm for the dirt. If that is an accurate figure for hardstanding, looks like it’ll remain as dirt.
We rent it out at $ 1 / sqm / month…so I guess hardstanding might take a while to payback ??
Hmmm…need to get my calculator out I think.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
This all boils down to people’s intent, verbage and ‘you know what I meant’ vs what is actually written on the sales contract.
I’ve been bitten with this very scenario also (only once mind you – early on) and I let it go and made sure the lesson stuck. People have their little wins over you as you climb up the property investing ladder…just try and make sure they are small wins against you…like in the 1,000 range.
Bottom line for me, take plenty of time when you sit down with the Vendor’s agent and formally write up your offer. Don’t fall for the ol’ “Look I’ve only got 15 minutes before I dash off to a really important appointment, so let’s quickly write this thing up and I’ll submit it ASAP to the vendor.” I’ve had this happen quite few times over the years and the pained expression on the REA’s face when I ask him to go away and come back when he has more time. It’s far too important to rush it, or leave out specifics pertaining to the property.
I wish I had a dollar for every time I’ve heard the sett. agent say “Yes but, it’s not specifically stated in the original contract of sale”.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
We have a property with a “R17.5 / R30” zoning. I went to the council and asked what it was all about.
The R17.5 (lower density code) was the one assigned to the block if we decided to develop it and only wanted to jump through x number of hoops.
The R30 (higher density code) was the one assigned to the block if we decided to develop it and wanted to jump through 3x number of hoops. It really is quite painful (both in terms of time and money and physical restrictions) to conform to all of the more onerous regulations to eventually be granted the higher density coding.
Hope that clears up some of the confusion.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
I don’t understand why people are tying themselves in knots, being evasive and contrite in the false expectation of batting away unwanted probes.
Gathering little evasive one liners that say nothing is not something that you should develop IMNSHO…if you at all value interesting human interaction.
My sister-in-law does this to people all the time and is an absolute master at having a 30 minute conversation about vague rubbish where not a jot of information escapes. Frankly, her world is very small and the cunning evasiveness comes across to me at least as very boring and uninteresting. Most people at parties spend less than 5 minutes talking to her before moving on to someone else where evasive waffle isn’t down to an art form. Please don’t practice being like that, it will destroy your character…if you take that to it’s logical extreme, you’ll all end up like lawyers…constantly asking questions and yielding nothing – what a DEADWOOD BORE.
Why are you all so ashamed to admit you are property investors ?? Don’t hide your light behind a bushel, step up to the plate and shout it from the roof tops. You obviously work hard at it – why are you ashamed ?? This is like tall poppy syndrome in reverse with a negative expectation ??
If people (family / friends and strangers) give you the willys, be confident and tell them to get over it. You do not need to please them or bow to their expectations. If you are a successful investor you will not conform to their expectations, so don’t even try.
How about throwing it right out there with something like Billy Connolly or Robin Williams “Oh me, I’m absolutely loaded…couldn’t think of anything worse than working in a job…being rich is fabulous darling. Don’t you agree ??” Be bold, try it, get it out there and see what type of response you get. If it’s still all negative nellie, move on to a more positive crowd.
If you all start practicisng these evasive one liners, I hope I never bump into you at a party or seminar with “say nothing pre-prepared one liners”…I’ll be the one quickly moving away and finding some interesting people to talk to. We aren’t machines or walking cheque books people…we are allowed to have some character and flamboyant traits. Remember, crazy is for poor people, eccentric is for the rich.
Bottom line, get some character, don’t be boring and evasive…it makes for very dull interaction.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
The people that are bitching and moaning to you about being poor and woe betide me…life’s not fair and why are all you rich buggers so lucky…they are ultimately wishing that you fail in your endeavours and fall back to ‘the pack’.
Ironically, what they fail to realise is that if you do fall back to ‘the pack’, it’s where they are anyway…but you’ll have investment savvy and experience on your side for next time, so even if you do fail first time around, you never really fall back to ‘the pack’.
Chin up – surround yourself with real go getters, not yes wo/men, and as my Granny used to say – get cracking.
As for Wylie…wanting more houses to clean up…drop us a line, I’ve got a few that need a jolly good spruce up – tenants sure as hell aren’t interested in cleaning up the hovel they enjoy wallowing in.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Another update…
One more unit has been tenanted out for 50% more than what the previous tenant who got kicked out was paying…well, it’s hard to compare against someone who refuses to pay you rent, I guess the %age is infinity really.
Also had a chat with the neighbour who mentioned he wanted to rent out the front laydown area…more “stuff” to keep. He’s old school, doesn’t like paperwork so we’ve arranged a little cash deal on the side. Need to take the ol’ paperbag over there once a month. I just love these people with “stuff”…it just overflows everywhere and they need to put it somewhere, all at a cost mind you.
The best part is the recalcitrant tenant’s have gone, and despite threatening legal action over our “forklift eviction”, as expected, they were all puff and wind…nothing happened so the path is clear now to sign up some decent tenants without any of this ‘just a few days more’ caper of no rent and slothful housekeeping practices.
The place is now over 50% tenanted and the self imposed deadline is also at the 50% level, so still on track.
Once the property is fully signed up with executed 3 or 5 year leases…thinking of flogging it off…although the temptation is there to just let it sit and grow, with the tenants paying for it all. Haven’t made our mind up on that one as yet. Anyone have an opinion ??
The biggest problem we find is both the wife and I do not like dealing with these rough characters. They are usually not familiar with contracts and hence even when committed with a written lease, they do not “feel” obligated, which makes the battle just that much harder.
If we do flog it off, it’ll be to some hi faluting Eastern States squirrel who thinks a 5% return is just tickety boo.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
“Retirement looming in 3 years”
Geez, doesn’t sound like you’re looking forward to it that much ?? Have you left your run too late, or are the numbers just scarying you ??
It sounds as if you really need to have an extremely detailed chat with someone. I don’t think the scant details you have provided will allow people to comment too effectively. I presume that is what you after regarding your post ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Well done Solomon. Here’s hoping your belief comes to fruition, and extends out to other Perth suburbs as well.
Lets hope the resources boom continues for a long time yet. Who’s complaining about the oil price – right ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
My understanding is you cannot.
The tax is levied (in WA at least) against the owner of properties registered as at midnight on June 30 for the coming fin yr. PPOR’s and other minor bits and pieces excepted.
You cannot prepay before midnight on June 30, and hence bring the expense into the previous tax yr to claim it in that year…(I’m presuming this is the thrust of your query) as the SRO cannot be certain that you will actually own the property as at the exact assessment time.
We found this out when we settled a property on July 1st at 11am, and pleasantly found out the Vendor was actually liable for the Land Tax bill for the entire coming year. Great stuff.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Yeah plenty….but probably none that you really want to hear.
1. It’s your IP. You can palm off the day to day management to PM’s, but you can never palm off full responsibility if you want things to go smoothly. I consider PM’s to be babysitters, sort of looking after things whilst you’re not there but it ain’t there’s and at the end of the day, if it all turns to custard it’s still in your lap…as you’ve found out.
2. Maybe you pay insurance premiums for the things you don’t expect – that’s why it’s called insurance.
3. A Landlord with his eye off the ball is bound to find situations like this. 13 weeks is a long way off the ball however, I’m surprised you’ve got out of it so cheaply. My only suggestion to your nightmare is to wake up.
4. I note you’ve got your tenants out in 16, after being alerted to the fact after 13 weeks ?? Something doesn’t ring true there…anyone who’s had real trouble with non-paying tenants knows that in 3 weeks you can hardly submit the first round of paperwork on the lawyer circus that is all that is available to legally abiding citizens. 16 weeks sounds more the go – perhaps you are not telling it really how it is…perhaps your ‘awakening’ was something else…who knows but you only.
5. Don’t expect any great returns out of your IP’s if you give them that much attention in the future. PM’s do not equate to hands off.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
This thread is reminding me of the saying “Be sure that the top of the corporate ladder that you are climbing is leaning against the wall that you want it to.”
Often we find we jump through all of these hoops to get a job and climb up the totem pole, only to discover later in life, that we aren’t satisfied or disillusioned with, where we end up.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
LOL,
That must have been uncomfortable ??
How exactly did you wear him ?? As a wrap or overcoat or something ?? Must of got heavy lugging him aroundall the time, or was he really skinny ?? [biggrin]
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
I always consider “before tax” to be me and the Govt.
I always consider “after tax” to be just me.Really, I’m more interested in just me.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
OK, I’ll have a crack at this ;
On the Buying side of the equation
1. Strata units where you don’t have 100% control
2. Inheriting tenants and letting them go “as before”
3. Believing what the Pest Inspector says or writes on that farcical report
4. Letting the Builder or Civil Engineer report on the structure without you crawling around the foundations and the roof cavity with him.
5. Blabbing to the REA what your top dollar price is.
6. Persisting with RIP’s for too long ‘cos we were scared of the unknown with other types of properties.
7. Not performing sufficient DD on the earlier ones, ‘cos we didn’t want to tread on any toes or appear rude.
8. Trusting what the REA’s said.On the Selling side of the equation
1. Accepting contracts with “and nominee” as part of the Buyer’s name and address
2. Paying for the REA to stand there in a suit and say “I don’t know much about this property, I’ve just listed it”…and had 3 or 4 cashed up buyers walk away in disgust.
3. Realising after completing our first reno which took 3 solid months in winter with two small girls around our ankles, that after costs and CGT, our time spent on backbreaking filthy work was about $ 3.70 per hour.
4. Trusting what the REA’s said.On the Leasing side of the equation
1. Well dressed and presented prospective tenants sometimes aren’t.
2. Shabby dressed and poorly presented prospective tenants sometimes aren’t.
3. All ressy tenants want everything for nothing.
4. The RTA is not your friend.
5. Non-ressy tenants don’t whinge as much.
6. Trusting what the REA’s and/or PM said.That’ll do….brain tired now.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Liz,
You can put whatever you want on the offer – of course that doesn’t mean the Vendor has to accept any of it.
We got burnt 4 years ago selling one of our IP’s with this nominee rubbish. The purchaser was in fact next door, but used this phantom ‘nominee’ so as to hide their identity from us before we accepted the offer.
We knew the property was strategically more valuable to them than any other buyer, but our R.E.A. refused to disclose this fact (he subsequently lost all our business and many people have stopped dealing with him because of it) to us…with us numpties finding out who the real purchasers were 2 days before settlement – by which time it was too late.
We subsequently received offers for our properties which have been automatically rejected with this ‘nominee’ rubbish on it. The buyers are always flabbergasted and frustrated that their little seminar tricks won’t work in the real world…but then hey, we paid more for our real world mistake than they paid in seminar fees so we reckon it’s only right that it trumps seminar knowledge.
“and nominee” be gone…
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
