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hi benderfile
well first do as Kiwi-Fulla has said
look at this as a school project and forumulate a complete business plan because that is what it is.
then bundle it up and bring it to the next sdg(sydney discussion group) meeting on the 29th of this month at petersham rsl( if you look you will see it posted yesterday not sure of which part of the forum its in camder will know) and let us have alook and the other investors there will give you some pointers.
look forward to meeting you.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi eeshole
Its all in the way you negotiate the deal in the first place here is a couple of example all that will give you the same result.
1. house 100 k
80 % lend is 80k but if you agree to get the price to 125k and get a 20% lend then the house @ 80% is 100k.
2. same as above and you get a discount for paying early
3. you do a deal where the owner gets 80k from the bank and you pay off the 20k over 5 years@ 4% rate
4. you option the house for 4 month put in a kitchen and bathroom then revalue (with nab my favouriteas they use there own managers to value property and are a little more adjustable on there valuations)and value at the 125 plus the reno costs.
5.This is the best but you need the money from the start buy the property out right reno it, then revalue with all reno included.
revaluation its a different section of the bank and the criterea is different for this post it wouldn’t work but it does for development sites so just thought i’d add it.
There are a couple of other ways but they are not for a open bulliten board and they aren’t something that I give out anyway they are in my little box information only available to me.
one area that has never been taped that I know of is the area of negotiating there is alot of money to be made in this area trouble is nobody wants to pay for it.
you will here people say a developer doesn’t make his money on the end product he makes it on the purchase and that is right because he negotiates a deal that makes that money.
and 100% lending is not the most inportant part, its a package deal that you put together.
try this one
bank forcloses on a site and is about to send to auction and then liquidate owners.
your job is to
1.get the site,
2. get the lend,
3. get all the paperwork together,
4.get a fixed price contract from a builder on 30 units,
5. get all around a table and do the deal and buy at 30% delow not the valuation report but the banks current owings and walk away making everyone happy ( because if everyone walks away happy the next deal is coming your way) and this deal is a 100% lend
time frame to do all this is 2 weeksbut this should help.
non of the above is advice and I would not us any of it to structure your investments on.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Qlds007
couple of things
1. if it is a development finance deal then 85% of GR maybe possible. that only leaves 15% of me left.
2. 100% of construction is that the normal 80% land and 100% construct or 100% complete and tell me its the latter then ring me.I always like westpac and anz they are the first to try and get customers back but are the last to help if you are a customer and want to deal.
3. Is there anything in it that says if there is comm in the development that the goal posts are moved.
still very interesting will be interested to see the movement of the other ball and chain draggers next will be anz then suncorp, hsbc and nab I haven’t put in cba as I don’t think they have a commercial construction lending dept and if they do they should get rid of it as its doing nothing.
but hay thats my .002 and its off my chest and theres only 15% of me left.
think what I would have typed had you not given 85% of me away.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi grant7
hsbc hong kong banking corporation.developments usually take between 12 months and 2 years so putting 12 months interest in a term deposit and the bank knows that the interest is cover for the time of the project and at the end they have a project that will be over the money they have lent.
most banks work on min 80Lvr at any time of the value of the development, hsbc run at 70%.
there are alot of private lenders out there from super funds to credit unions, some are near to bank rates and some are easier to deal with but they also have some funny quirky requirements so they do take a bit more work.
and the last bit is yes there are lenders that lend on end product usually 66% but can get up to 70% or 80% at 11% rate its call gross realisation !!!!! lending
oh where have I heard that name before.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi kariadams
see an accountant as it depends on alot of things.
structure property was bought in.
value of the others share.
value of the property currently.
how you are to be paid and how the money is to come back to Australia.
cgt and stamp duty issues.
you may find that once these issues are addressed holding while you are away will be a better option for both of you and the other party if as you say this was an investment they should see it as an investment and little things like feelings don’t come into investments.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi herks
yes it is a big project and will need to be run correctly I would be interested in getting involved and a couple of the people that I deal with I would think would also be interested.
2 to 3 years is a little on the thin side once sud division is done the sale will take this long.
for an idea of what a site like this should or would look like have a look at harrington water nsw not estate or it will send you to perth on the net its near taree there are 1000 lots ( about this size) with resort, pub, store (bi lo) 3 restaurants 2 marina’s, hairdresser, 9 hole golf coarse etc .
It is currenty dragging the property price in the area up.
lets seehere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi herks
not a silly question.
get end product value 1mil
take 30% off
700k then take the build off 400k
value of the land is 300 if da’d
if not take the da cost off as well
do this in your head if the value is close the negotiate if its miles off forget it.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi admin
any chance of having a button so you can log out or not show some sections as its no point having to scroll past a section that you can’t nor want to get into.I must admit I wasn’t one of those who found it confusing and found it ok what does get confusing is if I’ve been away and want to see what has been posted within a week I have two screens of information that is to be truthfull of no use to me and it would be alot easier if there was a button that says open forum only click on that and the other is not shown.
I’m no wizz at this but seems simple to mehere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi grant7
couple of things.
1. look at different lenders when seeking money not all with the same lender.
2. not sure about profit as an income depends the structure you are using.
3. it requires a reasonable amount of work to allow for full time employment with developing, I am full time.
4. I haven’t hit that serviceability problem but my structure are such that I organise different lenders for different projects.
5. I have a system of private first at 11% then go to small banks 9% then to large banks commercial 7% and then resi 5.99% honeymoon rate as I go down the tree when I get knocked back thats where that lend is and I refig my numbers on that rate if its still ok I run at that rate.
and as you are finding lending from different areas if serviceability is an issue then a term deposit solves it hsbc like them.
hope this helpshere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi all
I agree with most of the posts and I don’t think that the term financial planner is the right one for some planners but they are good to give you different avenues to look at.
at the end of the day the best planner is you. take as much advice as possible look at your risk profile where and when you want to get to that position.
I use this example alot and its very real you don’t wake up one day and decide to build a block of 20 units get out a spade and start digging in the back garden.
you plan
and with that plan you start at the foundation.
the structure ie the block of units must be sound so your structure( investment structure)must be sound also.
you must find the right builder so you must find the right accountant,legal,tax and assoc people around you.
you must find the site or the structure you are going to use company, trust( and theres lots to find out on trusts API this month has a good write up on trusts)
then finance for the building or finance for your structure talk to brokers banks and lenders.
we haven’t started building yet nor should you have started investing this is all ground work.
and just like developing whether its a block of 20 units or developing a investment structure once the first is done the next is a mirror and is alot easier but if you get it wrong just like if I build a 20 unit development site and it comes crashing down it is a very expensive mistake and can cost alot to rectify.
so having cash available it could be 1 mil I wouldn’t go out and start investing I would do all of the above and then if its cost you 100k out of the mil and its sound it will pay you ten fold in return.
hope vdiddy you post more often.
looks like you have a little homework to do.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Aukssie
sorry not as easy for me.
first if marcel the guy next to me my barrister says yes..
then my accountant robert says yes
then I would sign for a new company that we had just signed up as we talked.
as
a I don’t sign unless they understand it.
b I never sign in my own right its as a company or trust member ( litigation)
c I like to take risk but calculated risk.
d the two above have alot more to risk if they tell me wrong then10k, and you can increase to 100k or even a mil and not sure you will get the go ahead from either but then you must have a team behind you.
if you did have a deal that they agreed with then yes I would sign and no I wouldn’t worry what was on the paper we call it trust not in you but in my team.
don’t know if this is what you wanted.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi vdiddy
re post in finance section for a advisor in perth sorry but you need to be alittle more specific in what you post and put it in the other sectionhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi hanibanna
couple of things to remember.
1. when theres a seller theres a buyer, in this market the buyers are getting the product cheaper so its a good time to buy.
2.if you have done your homework then yes I agree with MichaelYardney as this is the best market for me to work in and it may be a falling for some put nothing I am holding has fallen at all nor am I in a hold and watch.
3.I have just picked up a very nice site that is 34 units and rental pays land and build costs so there all posi when completed cbd Sydney 25k per unit under the valuation.
this is a funny market just like in a down turn in the share market you must know the product or area and the bottom value for that area and then when it hits that mark then you buy or if you expect it to get there then buy at that value.
not sure about melb and bris but in the sydney market I’m a very little fish put still can find the odd good site.
as for resi got a house at 360k in an area that the min is 550k and I haven’t decide to take it yet it below land value.
as for
He also mentions that he wouldn’t be surprised if this soft market continues for another 10 years. or And according to all the indicators in Australia, it looks like we’re in a down turn. Is this correct?again thats not in my indicators and I would like it to fall slower and longer, as rentals have not gone down and its the main indicator of demand.
this is my .002 worthhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]make it the 22nd then
just make a timehere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi robibob
what structure are you buying this property in you can buy in a company and trust and it doesn’t matter about your spouse as mine doesn’t get involved in any of my projects for protection of our assets.
2. have you any excess equity in the other investment property if yes us this to hold this property and leverage of both.
3.sorry but its never hard to get finance its hard to work out how you pay the financed you have got.
4.I would talk to a broker pronto and get a refinance on your investment property to the max using your partners current group or wage slips then get get a letter from a lender for the value of the unit then using the cash from the other property put 12 months of interest in a term deposit with the lender that is going to lend on this property then wait service ability won’t be an issue ( discount the amount by the about of 12 month of rent).
simple if the broker organises correctly.
and sorry but this never happens
to hopefully take the pressure off. What is the best way to go – considering our circumstances.
it the market we are in.
this is my 002 worthhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]same place at 4.00 on the 29th up at the bar outside the room is good for me.
pull a few tables together.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi all
somersoft have a meeting on the 31st in glebe I will be going and maybe we can meet there and have a chat for those who are not members you need to join to get a tickethere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi spi
not sure but your date is a friday is lunch time ok for you or would your like around 8ish at night and do we need to supply entainment to get you to go.
back to the post the 22nd is fine for mehere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi hiphopsupamix
couple of out of the box ideas.
1. organise a company and a trust,clean company from day one the company organises the property, lend the deposit to the company you as an employee of the company gets a low or no doc loan ( make sure you can cover the loan repayments)
2. if not find a property that you can rent out to like minded individuals and they can rent the property off you and I’m not telling you were to live.
get an off set account attached to the loan and throw the excess money in it so you can use it latter if need be.
try and use vendor finance to purchase as this will bring down the amount required and will put you under the mortgage insurance.
private lending is good for quick turn around projects 2 years max but norm lending is better for long term lending.
you can get 100% lending organised without mortgage insurance and normal lending it just takes a little creative pen work.
finance is easy its paying for it that is where the work comes in.you haven’t given me enough info to give you more help put if single and 26, I would be looking at a reno with a couple of mate and flogging it off make sure you purchase in one name as you will loose the fhog for the others if they are on the title so you need to draw up a deed of agreement between you all.
sorry to say this but there is more then a hundred ways to skin that cat and some you can skin the cat and don’t have to kill it.
Its all pen work talk to a broker and if not happy post again.
as for the unit size don’t go under 50sq for the price you will have headaches latter and you don’t need it foe the first property its a buyers markets so you should be able to get better value and as a second or third, yes they can be good depending on where they are and lots of other factors.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Cabo Wabo
go to the nab or st george I have found them to be the best for resi lending at the moment if you want a bank lend.
yes the broker will have to repay his or her commission if the loan is held for under 12 months with most banks and you will have to look at your early discharge clauses as the will fine you also.
as for difference between resi and comm, comm is usually 1.5 to 2% higher
resi at the moment is around 5.99% nabconstruction loan and would be 7.5% as acomm
you need to talk to the broker all my lends are trusts with companies and haven’t had a problem but then I have done one thru westpac but do have westac bank accounts.
I mix up my lending so one doesn’t know what the other is doing
with one bank won’t name which one I have three loans and they are no doc ,low doc and full doc and three different bank managers(customer account manager) with the same bank and they don’t interchange information.and are not setup in the same areas.
could of other charges that you will pay with comm as a construction loan draw down around 770.00 each time,draw down inspections about 600.00 with resi (nab) free.
valuation of the property comm you pay 1200.00 resi free( all of these will be nab as its the last one I’ve done.)
(I have anz, suncorp,hsbc,nab, and three private lends)
I would try for a resi loan and also look at holding for longer check capital gaims problems that you may face.
usually its reno reval hold and resell unless you are going to use the old ppor and sell.
sorry to say this put you need a bit more homework on this one.
if I was going to reno and sell.
I would option the property, reno it sell the property when reno’d and do a deal with the owners.
this is a better alternative and will be more profitable check with an accountant and they will tell you the structure.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
