Forum Replies Created
- Qlds007 wrote:Almost right guys the Crown has ultimate rights
I forgot about those parasites.
Dubstep wrote:Freckle, They are coming for you !I know. I have an exit strategy
Nigel Farage On "Wholesale, Violent Revolution" In Europe
In a little under two minutes, Nigel Farage sums up the utter farce that "the religion" that Europe has become. He explains, his fear is that what will break up the Euro, "is not the economics of it, but wholesale, violent revolution," in the Mediterranean, and that is "all so unnecessary!" Speaking at Simon Black's Offshore Tactics workshop, the so-called modern day Cicero goes on to point out that France's Hollande is "the number 1 among idiots running countries around the world," and worries that Merkel's pending election means there will be more and more 'tough talk and action' as she shows the people she is in charge. Simply put he warns, alongside Ron Paul, that if you have money in European banks, "Get your money out," because, "when the next phase of the disaster comes, they will come for you."
Hasn't got a show. The forces arrayed against him are too powerful.
It means a bit more than that. For example unless specified the directors obligations aren't necessarily equal. If you had 3 directors and 2 had little if any recoverable assets at the time of liquidation the burden may fall on the remaining director.
Many SME B2B credit arrangements require personal guarantees. Getting a solicitor to sign you off ensures you fully understand your rights and obligations. If things turned to custard you can't turn around later and say the bank failed in their duty to advise you (directors) fully and frankly. It also ensures the legal advice is objective.
JacM wrote:rulership wrote:If the bank wipes it clear do I have grounds to recoup the money from the person who goes into default?
There isn't much point trying to sue someone that has no money, so it's most likely you will have to cop the loss on the chin.
Depends. They may have other assets. Unless the loan is non recourse (commercial?) you can still pursue a judgment even if they're bankrupted you can lodge a claim. The mortgage is a security over the property so once that is disposed of you become an unsecured creditor for any remaining assets. Getting a judgment might help bump you up the queue but you would need to get specific legal advice depending on the situation.
Why are guys like this so rare in politic? One thing the world is definitely short of is real leaders with the balls to do the right thing
2nd mortgage basically means second in line secured creditor. If there was insufficient to cover the first mortgage (after expenses) then the 2nd mortgage cops the loss and so on down the line.
First to take losses are the unsecured creditor
Nest are the secured in order
Next are the agents liquidating ( legal, RE etc) If these guys take a loss it's a total loss.
+10
At last someone who can articulate the realities on the ground and expand on some strategy. A somewhat better elaboration than our Property Know How Club leaders "just have a look", suggestions.
I don't share your optimism but like I've said you're probably the best person to be able to manage on the ground risk. A tough act to follow for an inexperienced foreigner. To even have a hope in hell they need to lock onto someone such as yourself.
I'll be interested to see this fin model you use.
If I was to even consider Texas CRE this trend concerns me.
Texas growth appears to me as an MSM created illusion. Texas is a lifeboat for a failing US economy. The apparent growth obscures a failing internal manufacturing/commercial economy.
By the way you should also catch up with this
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity. Data were collected April 16–24, and 94 Texas manufacturers responded to the survey. Firms are asked whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month.
From the report:
Texas factory activity was flat in April, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell from 9.9 to -0.5. The near-zero reading indicates output was little changed from March levels.
Ebbing growth in manufacturing activity was reflected in other survey measures as well. The capacity utilization index came in at 2.7, down from 5.5, and the shipments index fell to zero after rising to 10.6 in March. The new orders index fell nearly 14 points to -4.9, posting its first negative reading this year.
Perceptions of broader business conditions worsened in April. The general business activity index plummeted from 7.4 to -15.6, reaching its lowest level since July 2012. The company outlook index turned negative as well, declining from 9.6 to -2.2. Labor market indicators remained mixed. The employment index has been in positive territory so far in 2013 and moved up to 6.3 in April. Twenty percent of firms reported hiring new workers compared with 14 percent reporting layoffs. The hours worked index pushed further negative, from -2.4 to -6.5.
Price pressures abated in April. The raw materials price index dropped from 19.1 to 2.5, posting its lowest reading since last July. The finished goods price index dipped to -3 after posting positive readings throughout the first quarter. The wages and benefits index edged down from 18.5 to 17.7, although the great majority of manufacturers continued to note no change in compensation costs. Looking ahead, 34 percent of respondents anticipate further increases in raw materials prices over the next six months, while 21 percent expect higher finished goods prices.
Expectations regarding future business conditions fell markedly in April. The index of future general business activity fell 22 points to -6.7, its first negative reading in five months. The index of future company outlook also plunged, dropping from 21.6 to 6. Indexes for future manufacturing activity fell slightly this month.
The Dallas FED's survey dovetails in with a lot of downside data coming in about the US economy as a whole.
I see ammo has doubled in price. That might be the most ominous stat of all.
Ammo Prices Have Doubled Since December At 'America's Largest Gun Shop
sundirtwater wrote:h. I hear regional NZ has low priced homes around $30k, but will the banks allow you to refinance (assuming you have to buy the first one one in cash to get equity)?
I don't know where you get that from but it's rubbish. Land value alone in most rural areas is worth more. NZ housing stock is over valued in the main. It's always been a bit of a wild ride the NZ market.
alfrescodining wrote:That's the kind of property I'm after. Sites with development potential that aren't on the market, and the owner has no idea how much they are worth but I do.
OK I see now. I'd still do it person to person though. You surprise me in that you have the cahones to give development a go but don't have enough confidence in yourself to make a face to face work. I think you're worrying about the wrong things.
John here's a little tip for you. One off projects aren't much use to anyone. The Exxon project is what 2 years? Then what?
But lets put Exxons project in perspective. There are no new jobs. The project is a consolidation of several sites that are past there use by date and the importing of 2000 personal from Fairfax, Va. The new locale is simply a new beaut region that will siphon people away from older decaying locations. One wins while another looses.
Find something that gives us an idea of say a construction industry project pipeline for the next 5 years. How that would create/support a sustainable construction industry etc.
alfrescodining wrote:I'm in my mid twenties, and I look about 10 years younger than I am. I would get nervous in this kind of situation and they would not take me seriously.
Just about every person who went into sales was nervous and ballsed up their first few presentations. Jeez I made some right cockups when I first had a crack at sales. I think the first contract (investment for AMP) I ever sold I completely forgot how to do the paper work. You get the hang of it after a while. The more you do the easier it gets. Roll play it till you've got a presentation down pat. Every time you get a knock back or no remember the reason and develop a work around that helps move you forward if possible. Confidence is a state of mind not looks.
Knock Knock
Jack: Hello Sir my names Jack Freckle and I'm a young property investor (offers hand to shake) who's interested in properties in this area including your place. Would you be considering selling your property now or at anytime in the near future. If not would you know of anyone in this area that might be interested in selling?
Homeowner: No we just bought the place 12 months ago but the old girl across the road might be moving to a retirement village from what we hear.
Easy peasy stuff. You keep the conversation going if they're interested and you'd be surprised what information people will part with.
The trick is to ask questions not make statements. Questions get the other party engaged. Asking for an opinion is another ploy – everyone usually has one. If they engage you're off and running. It just becomes a conversation after that.
Alf here's a heads up.
Knocking on doors asking people if they might like to sell their property is a fairly inefficient way of looking for opportunities in a market. You are far better of using your time looking for motivated buyers through agents. What you are trying to do is what 5 million property agents do all day every day – chase listings. Why are trying to compete?
The primary reason people make offers to non sellers is for emotional reasons. They tend to offer above market not below market that investor would be after. There are those that make offers to buy a property that perhaps adjoins another so units could be developed for example. It's unusual to make offers for singular properties.
alfrescodining wrote:Thanks everyone. It's the contract side of things that bothers me though. I spoke to my conveyancer today, who said that like any normal sale, the vendor would have to prepare the contract.Either party (buyer or seller) can initiate a contract. You walk up to someone and make an offer to buy their property for $XXX and they agree you have a contract. A written contract is simply the formalised version (for recording purposes) of something that is in the main negotiated verbally.
Quote:I'm just worried that after agreeing on a sale and a price, the vendor realises that after paying a solicitor for the preparation of the contract of sale, I could just ride off into the sunset never to be seen again and they are left with the bill and a contract of sale they don't need. I wonder if there is a mechanism whereby I could have say a grand held in the vendor's solicitor's account, so that if I do bail, they get to keep my cash, but if it goes through smoothly, the solicitor releases my money. Does this sound reasonable?You would make the offer in writing with whatever conditions you wish to include. Both parties sign it and an objective party witnesses it. A condition may include subject to solicitiors approval for example. You both enter into negotiations and agreements in good faith. If the deal falls apart then unless you have a prior agreement for cost each party bears their own costs.
In business when one entity offer to buy another the initiator normally bears the cost of DD and supplies a deposit to 1/ show they are serious, 2/cover the sellers costs, and 3/ pay a non refundable portion that usually covers both 1 & 2. A successful deal may include the deposit as part of the sale price (or not).
Another MB article with ABC 24 interview with Dr Nigel Stapledon adds emphasis to the lead post. You can watch and read it here
Cheeves I think that's one of the better on the ground appraisals this subject has seen for a while. If only our resident experts (I use the word loosely) could put together something as informative we might be further advanced.
In reality I don't think you and I are too far apart. I've always believed the US market is far more riskier for foreign nationals than they realise. 3rd parties tend to paint the picture a lot brighter out of self interest rather than any supportive data. I see the big picture as the underlying threat but I can see how an experienced local believes, even if they're aware of that risk, that it's manageable because they've confidence in their ability to manage any downside. I tend to think guys like yourself have far more elaborate and flexible strategies than your foreign buyer.
You're a hard core active player with fingers on the pulse and multiple eyes on the ground and yet your success rate is as low as 62%. I think that statistic in itself speaks volumes for the absentee foreign landlord who probably receives incomplete biased updates from industry players as his primary source of market info. As I've said before. To succeed an investor needs to be very aggressive and assertive that means being extremely active in monitoring the market and certainly being plugged in 24/7 to their investments.
You asked me; Do you consider grant money synthetic? Yes and no. A Fortune 500 company with 500 employees isn't going to be swayed by a $4mil grant. It sounds more like a back pocket stuffer for a few exec's rather than a grant. However, grants that make a deal financially viable for smaller business is synthetic. When tax payers have to subsidise business because business can't make a go of it other wise you know you're in trouble.
This Fortune 500 firm is not moving to the "desert" as you say, but they are moving to an area where population is denser, opportunity for perhaps "cheaper employment" exists for something they plan on expanding on, and cheap land, creating lower overhead. This is very real and very organic.
The F500 firm is moving from the dessert to an emerging economic island. So when wages rise, overheads increase what next? A move to the next cheaper location. If FL is so good why weren't they there before? This is a risk for FL. If it gets too hot too fast it will kill growth. It's happening now. As one area goes hot it reaches a point where competing areas suddenly become more attractive so the flow moves to the next best deals. Basic market dynamics. The hot zones see rapid growth then go flat. They move back to trend over time. It's a setup for a speculators/flippers market. It adds a dimension of risk for the medium to long investor. What appears good today may end up being a poor or average performer over time.
EDUCATION WITHOUT APPLICATION NETS YOU ABSOLUTELY NOTHING!!
I've always disagreed with this label. Industry rhetoric to get people to jump by belittling them into action. 6 will die, 2 will suffer irreparable damage, 1 will land unscathed and 1 will bounce and run.
EDUCATION IS NOT ONLY ABOUT WHETHER OR NOT THE DEALS ARE FEASIBLE OR NOT. THEY ARE ALSO ABOUT ASSESSING YOUR OWN ABILITY TO EXECUTE WITH A REASONABLE LEVEL OF SUCCESS.
Too many people are thrown in or jump in the deep end without the necessary practical skills to survive. Education is often useless without practical ability.
Your cashflow model will be interesting and I expect will offer some another valuable tool