Umm jacar11457,

Danger!!! DING, DING, DING!

The alarm bells don't seem to be ringing for you, maybe you have known your friend very intimately for the last 20 years and you have done this before with them? No?

I have never heard of putting TBA on a rental agreement. Not for tax or any other purpose.

Be very, very cautious with proceeding with this as when the owner decides not to give you the property based on the TBA then the only person who will be hurting will be you. It's not going to hurt your friend. Maybe they are looking for more rent or other tenants and this is their way of hedging their bets.

D

What does the agent say, where is the agent, why are you getting all these items on your shoulders? I would be asking way more questions of the agent and asking them what they are doing, what they think needs to be done, what should be don and what can wait.

The agent should do a walk through with them and field questions and issues, take notes and photographs then present items to you later that must be done. You seem very involved.

Too much you, not enough agent for my liking. I'm not saying completely let go, but you are the manager of this thing. Think about a business. The top manager doesn't take every call asking when the shop is open…the desk/receptionist does, the manager handles the big things that need their attention like the shop being on fire () running the overall business etc you get the point.

If the agent is useless you need to get another one. You are giving them something worth $$$$ to you…

D

Aww I missed it!! I meant to record it too! I'll go watch it now!

Good on you Troy! You can also follow Rookie Developer on Facebook (yes it is acceptable to use Facebook! )

D

Go afghangirl, you are enthusiastic!

Here is the Ron Forlee book again (!) residential development guide, the API small development guide. Have a squiz at Rookie Developers website as well.

Now 4 TH's on the site means you need to have your finance sorted now, rather than leaving it to chance. So if you do get this site when do you plan on building? Most builders won't start over xmas break etc. Call some builders get some quotes and ask them when they could start building. You might find there is a delay of 3 -4 mths meaning you want a longer settlement.

Why is the vendor selling this site? Is there no money in it? Has the market moved and the resale price has changed? Could they not get finance, why not? Be very careful.

Do your sums, get every figure you can before you start.

Eg. (VERY ROUGH FIGURES)

Land $500k (inc stamp duty, etc)
Building $900
Drawings and extra costs such as holding costs demolition etc $70k-$200k depending on how long it takes what else you need to pay for.
Agent to sell the units 15k on each one

Resale so say they will each sell for $500k (be careful this is the figure that counts) 2,000,000 = ok profit give or take. (not including tax here)

These figures are really, really, rough ok everyone

If any of these figures are lower or higher the money you make will change.

I wouldn't get out of bed for less than 20% margin (on a bad day) IF you are doing heaps of deals then 15% is doable, but everything, everything will eat into a healthy profit.

Developing is very cash hungry, so try to borrow as much as you can (within reason) and keep your cash to pay your consultants.

Good luck, feel free to PM me if you get stuck with anything.

D

Hi Tyler,

You may get stuck with this one as if you are introduced by the agent, the vendor must still pay that agent the commission due. In Victoria the vendors name is printed on the front of the contract/sect 32 so you maybe able to get a copy of that and hope that there are not too many people in the town with that name. If the vendor lives at the address maybe try a very discreet knock on the door.

Good luck, maybe try to woo the agent and make them your very good friend

D

Hi All,

Have to say even if you have good tenants some plants may die any way especially if they wrong type for WA. How much is a shower curtain worth? $10? Oil stains come off concrete, just get the right thing to clean. If the dog has dug up the lawn chuck down a bag of lawn food and lawn seed $30? If the dog has dug up the garden beds chuck down mulch $6 per bag. Missing light fittings – were they expensive?

Treat this as a learning experience. Always get documentation and photographs. There is a reason for inspection reports, condition reports, bond etc. It does sound like it is on the minimal side of the damage scale and while you may be out a couple bucks and some time you have lost more in damage to your relationship.

Good luck working things out.

D

Hi Sonyasal,

That is horrendous!

Can your solicitor draft you up something to put the fear of god into them? Other than that can you take it to small claims court or what ever the VCAT equivalent is in your state? Have you also made sure the bond is still there and not back with the tenant? Good luck with this.

Sorry this had to happen to you, people are pigs – the ones who don't do their jobs too.

D

Another go nowhere article to sell papers

"Supply comes when the demand is present. The reverse side of this equations is that when times are tough building stops. So lets not believe the myth that supply leads the housing trends, when in fact, it actually follows."

Uhhhh?

Whatever, why waste your time on this tripe.

Quite a few bears inhabiting these woods now, pity they can't see the forest for the trees.

D

Hi Rebekah,

API small development guide is good, Ron Forlee, residential development book is good, The results Real Deal book is good, you ahev to read through a few to find the decent info on developing.

Find someone who is developing who you can go onsite with and talk to regularly.

Good luck.

D

Austy,

This whole thread is a massive spruik. I'd be interested to see how much of this is genuine

D