Forum Replies Created
hi all
here is something that is out side the box but is doable and is not to be seen as any form of investing its for information only.
what happens is you trade your equity into a project for a return of 22% the developer takes the complete loan from a bank or lender to there equity and your equity plus your interest for the duration of the loan.
then you put a second mortgage on the property for the value of your equity.
so if all goes graet you make 22% on equity that you have not paid for.
if the project goes west the lender comes in for there loan
which is the borrowers 70% of there property.
they get paid and come to you for the other 10%
you have 22% of the value in your bank and you get paid back for the equity loan plus interest again as thats part of the loan you set it that way in the documents.
yu have no responsablity to the lender as your are just giving equity and you get a letter of priority from the lender that this is the max of your exposure to them.
you check the project that the equity is going into to make sure your equity is covered and its money well worth using.
not for ppor but good for ip and you use the equity that is sat there to generate cash flow.
westpoint was a very different kettle of fish and I don’t think it helps to post each time taht different forms of finance come up westpoint ring a bell for me westpoint was designed to cheat and if the people had of been given or had the knowledge they would not have invested in these forms of finance.
equity lending in this form is relatively new to the market but can be very handy for a developer and for an investor as its no money down high return yes could be seen as high risk but do your own due diligencies. and its not for everyone but is very different.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi all
this is a very difficult question as I have never met one.
I have met a lot of people that they think they are one or people that think some one is one
but not met one myself
yet maybe they are next to the unicorn thats another thing people would love to find.
what I look for is not a guru but a professional in there field and they are very different things.
a professional can and does do his or her job and can show you what they can do
were as from what I read or hear a guru tells you what he or she can do.
investing or for that matter making money is not rocket science( hense there is not alot of rocket scientist investors) there are skill or rules that need to be learnt but is that a guru I don’t know.
for me a guru is some up very simply gee you are you and no need some one to tell you that and thats a very short book.here to help
[email protected]hi markdangerous
pm me if you wish I am at ashfield not sure if I can help.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi freeman cooper
put a very simple add saying 10% return at 45k negotable.
in a melbourne main news paper
and ask jaffasoft.com to do you a free web site and sell for 42k if sold thru the site and give jaffasoft the other 2k and he will link it to a couple of real estate web sites and you will sell it.
my .002here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi Lesleigh
just another side line to this post is that if you try to open an account with westpac( and they not a small bank as you will all be aware) and you say you are a developer which I am there is no field under occupation so ypu have to go into management construction.
so there is no sure occupation as a developer.
so my kids maybe right that I am unemployed as my occupation is null and void.
as for the post if you put a garage on the back of your ppor technically you are a developer as you have developed a property.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi all
if you use these cards on development sites you can do the following.
1. pay a contractor with the card for say 5k not cash but via credit this does get the 55 days
2. do your usual draw down from your lender
he pays you back your 5k into your account.
3.use this 5 k to pay for cash items in that 55 days and on day 40 do the next draw down with your lender with the 5k worth of cash receipts
4 lender pays you the 5k back
5 the 5k goes off the card card is neutral
6 day 45 line up next account to be paid via card so the contractor starts earlier and pay him via card on day 56 via credit and start all over again.
you have 10k worth of free cash per month do this and when the bank asks to increase you card max it out each time.
get up to a gold visa card with 25k and you have very good cash flow.
at no cost.
if you want to be really smart ask your builder to apply for the credit facility as part of his quote and that you will pay via your card there is alot you can do with this credit.
most of the large suppliers you can pay with a card so use it.
thats my .002here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi foundation
very interesting post and thanks for it.
and will wait for the next bit it is very iteresting how these commodities do affect costs and you can’t know everything.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi all
I will keep up with the post and will give you the next run down very shortly
I do have to be very carefull with this soap as the people involved are going to loss alot of money and have already lost alot and I do have to be very carefull that the eagles don’t try to pull me into that same mix of litigation.
I have done nothing for the last three weeks on this project except extracate myself and our company out of that litigation mix and we have had a lot of success hence the reason for the deal.
if you want to understand my negotiating skills I will post next chapter on how I negotiated this deal and what had to be done to get the players to play ball the way I wanted them to.there is not just me involved in this soup I have what I class( and everyone classes there team the best) the best team behind me
and just as you have in any soccer team you have different players and these players have different roles and some times the striker( me) has the ball
but if you have to score you may have to pass the ball to another player ( your legal)
and he may have to pass to the winger (your buyers agent) who may have to give the opposition the ball
so your midfielder ( your legals) can get it back and pass to the winger( your buyers agent )
and then on to you
and the striker has it again.
this for a coach is normal practise you just have to put the team together to score the goal.
and the players for me are
goal keeper ( accountant)
defenders ( builders, project managers,brokers)
midfield ( legals, barristers,)(merchant bankers)
wingers ( real estate, buyers agents,)( liquidators)
strikers (negotiators) (usually in groups of three but have done a couple of projects with two lately)each of the above have very different skills and I do need to use them all at some time and you do have to have a great belief that they can do there job.
and some meeting some times in a group conference situations.
and as for why you would bother and you should forget itwell currently while we have been going at this project all but the strikers have all had the same opinion at some stage
and the midfields at one stage would not talk to the opposition so we thru the ball to a winger to get the project moving again and it did
the midfield is 100% behind the deal now.
as they see that the inpass has been gotten over.
my style is very straight forward and use a core of people we bring people to the table and invite people to join our little group when needed but we also kick the non performers out twice as quick if they can’t do what you say.
If we pass the ball you must be able to deliver or we take the ball back and it doesn’t go there again.
and the buck stops at my computer.
if i think its not going to come off I drop it and gain as much out of the deal as possible and have three exit strategies for each project.
so that we have fall back position to regain the ball and move forward again.
as with any of these project securing the site is but a very small part
the next part is to secure, that when you are the owner out right that you are not attacked from all sides in our legal system
or for that matter in another legal system if the soup is overseas the grand hotel vanuatu was a classic case of securing a site but with the threat of attack from three side and having injunctions that would not allow you so continue construction, would kill any potential profit.
remember a soup is a soup and if you spill soup it burns
and if you lose alot of money soups want to recover it from some one
and if that soup includes banks then you need to shore up you legal position to stop this happening.
an injunction is relatively cheap to put on( in legal costs) but is a hell of a price to remove.
so you need to in no uncertain terms tell all concerned that this will not be allowed in advance
so if they do come you can hit for costs.
I don’t wish to go into to much detail the internal wrangling of this soup because I think it serves no purpose.
if you have any question by all means post then and I will answer them.
as I did say I have a bit of a hectic couple of weeks as this is not the only soup on my desk at the moment and the others are just as delicate as this one
this is one of the easiest from my point of view.
at the end of the day in this market I don’t need to do these deals as there are alot of them I pick and chose which I run with and the more difficult the easier to negotiate.
why you may ask.
simple everyone else throws there hands up and says to hard.
for some one to drop 4 mil into the sydney market
on a site that has three legal waiting to attack,
two arguing groups,
two banks waiting to liquidate,
a falling market,
banks squeezing on lending
a loss of ex amount already
and now an interest rate rise,
you show me the light,
no wonder people say for get it.
for me this is my market and I love to swim in it and if you see the light at the end of this tunnel and you put together a plan its a very good market to be in.
you make the most amount of profit from problem sites that you can solve because you have so much leverage.
I hope you enjoy this post I will try to pop back and add as needed.with regard to the 15% just incase we get you are advertising an investment well my second tier lender is charging 15% so the interest will go to someone.
and is not to be seen as any form of advertising.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi all
I am interested in everyone views I may not agree with them but interested in them any way.
this interests me.
Gross it doesn’t seem too many people are interested in your post there has not been one response to you other than your own in 21 days – why bother.I haven’t put this here for people to post if they are interested then post away but with regards to the last two words interest me alot and the reason is that alot of people have this attitude and is not unformilar when it comes to people not only investing but also going out side the norm of the 3br house in parramatta or mt isa for that matter.
they try to reason there own experience with others and if it doesn’t drop into there pigeon hole of investing they say why bother.
well for me it simple and that is to make money thats why I bother, with relation to this post is because I have been asked to explain a soup and thats what this is.
there are lots of people on this planet and we all have our risk profiles some people don’t mind risk some do I explain the different projects that I am involved in and people can decide if they wish to get involved if they wish or not.
and you can cut and paste any one of my posts and you will find the same non of the people involved in my projects are under any illusion of what we are trying to achieve and if they wish to get on board they are in for the ride of the investing life and its up to them what there risk profil is.
for wealth4life.com I have a very simple answer and that is why bother?I will be putting up chapter 3 with in a week or two and people can have a read.
oh and for those wondering no I don’t sell books, investment seminars, or investing clubs there seems to be alot of people that have these fancy web sites and sell fancy investor learning programmes that will help everyone under the sun to invest and will put people in touch with the best people in the investing market but are not sure why you would post this for free and why bother, this is straight out investing and this project is fully funded there are a couple of issues that need ironing out at this stage but reading wealth4life.com post maybe I should throw in the towel with its all to hard.
oh sorry for me non of these soups are to hard it just whats the return that I look at.or maybe book into one of wealth4life or resiwealths investment seminars I am sure I will learn heaps there.
I will have to book in after the last of these are finalised.these deals are out of most people standard investing criteria or values and as I said I do take all peoples posts and am not one to critize but this is up for people to learn and guess what else I’m not charging for it).
oh sorry for me non of these soups are to hard it just whats the return that I look at.hi all
will be back soon with part three and the current status.hi niniebear
have a look at gpfund.com they market into the china market properties here there are alot of individual marketers that take high end property from Australia into the asian market but they are market specific.
there rates are high so be prepared.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi drgraeme
I don’t want to go off the track with this thread as he needs all the help he can get.
but you can’t just put a caveat on for any reason ( alot of people have and they ca get struck out just as quick and there are very heft penalties for putting a caveat on for the wrong reasons.)
to put a caveat on you must be able to show that you a financial interest in the property so you do need to have physically lent the money to an entity and had it documented( hense I said was the loan documented to the entity and then if it was yes you could have put a caveat but this would have done no use anyway as jv parnters in normal coarse would lift it to sell it)
a caveat is good if you are lending to an external party or entity and you need to put a 2nd registered mortgage in place to allow it to stand against a legal or they will get you to remove and hit you with the penalties.
have a look at caveatlending.com
this isn’t the post to explain caveats.
hind sight is a wounderful thing and I would love to be able to win a couple of kilo’s of hind sight
then who wants to be millionaire.
but both I won’t win
but if I had hind sight??
well then just maybehere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi skippygirl
did you end up investing there.
there is currently about 800 with 2000 on the drawing board.
if need be email me and can send a bit of info on the area if you want.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi george1955
yes derek is right hence you need to sunset clause your offer re the percentage of liability
you need to relay every thing thru your legals and if they do talk to you mp3 it or right down all that was said
and then relay that thru to your legals. don’t sign or agree to anything unless they say so tahts what you are paying them for.
as for sweat there will always be lots of that you do need to play this whole thing very cool at this stage you have done nothing wrong so why stress.
only stress when your legals tell you not theres.
hang on in there and rely on your team get them to hit him hard and then they will if need be organise to mediate.
I hit first then mediate with my legals help and then if that doesn’t work hit again with the legals.
but try not to admit anything, give anything, sign anything, without there agreeing to you doing it.
any sign that you are agreeing to anything is an indication that other gain a foot hold and don’t give them an inch and if possible knock them back a mile.
my reading has not changed and I think you are on solid ground so don’t give an inch unless your legal tell you to give this to gain that.
hope to hear good new from you soon that this has been cleared up.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi cazza
very interesting to see you are getting good advice bit of a worry that you haven’t had a chat with your lenders yet thats the first stop for me.
but with regards to the interest I would tell the purchaser that you will reduce the price via vendor finace for the interest for the 12 months this doesn’t affect the purchase price but they then have this money in there account at settlement it get rid of any problems for you and they think its great f interest rates move well thats life and because you have vendor financed the interest they can factor this in as part of there deposit.
so far the advice is great you do from your posts look like you are at full steam and thats good.
one little bit of advice that was told to me by a little bird was to talk to a real estate and instead of offering 1% commission offer 3% it costs you 15k more but get them to increase the value that you need by this amount it won’t hurt
but there are alot of real estate agent that have overseas investors that are looking for property for lots of different reasons and if the commission is some thing different that push there clients your way.
hope all works out well.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi
this is not a place to answer these types of questions as it is asking not only the lenght of a piece of string but if its shorter the who cut it.
but here is the best I can give.
in red
Good Morning, -need help!!
I happened to be on a television show a few years back, they ran a strory on me and my property investment portfolio. After this was ran i was swamped with people that wanted my help or advice. I met one man who came to me & wanted to do a Joint Venture. i agreed & a contract was drawn up( this is the most inportant you must read this document and you legal will check it should have been done by a legal) where profits or losses were split 50/50 is this in that agreement. We both live in Cairns, we decided to do a full home renovation. He said he was cashed up & ready to do it, the renovation we did went bad who was doing the accounts and who was getting the quotes and who budjeted the project, the budget blew. it ran a few months over time again who was in charge you or him and the market fell. mY JV Partner ( who was the money partner) had plenty of money left to him from an inheritance, during the Project he spent most of his inheritance on other business and rental properties leaving no money to finish the renovations or for holding costs in our JV, so i helped out & paid about $30,000 to help complete was this a formalised loan to the jv company or group was paperwork drawn up I hope so, the house was finished & on the market, it looked great irrelavent. Even though the budget was blown my $30,000 was the amount it blew by. Anyway, my investor got into financial hot water, the business he bought was not going as planned and he was out of cash. My investor sold the renovated house without my permission for $150,000 less than we first initially anticipated how did he sell the house can you get a copy of the sales contract from the real estate or selling agent and a list of the people that went thru the house if the house was joint owned you should, if as you say latter on that the house was in his name then you may not get this info but will come to that later, he had to do this becuase the banks were close to foreclosing do you have any of this correspondance keep copies. During the time of the JV me and the investor became good mates( there is no mates in business there are partners that are aiming on a single goal if these don’t happen then you get what you have now friend and foe) we would paint together, and pretty much did as much as we could to the house to save money. we surfed together & our families hung out, our children became friends also. Cause he sold the house $150,000 lower than our anticipated asking price it incurred a loss. of about $100,000, the day it settled his solicitor ( did you have separtate legal advice and or was this the same solicitor that drew up the jv agreement if it was then he is your legal solicitor as well and to tell you if a loss is iminent) sent me a letter saying that it was my fault, i mislead this investor, i was negligent , i had broken the trades practises act & the only reason the investor bought the house was because we were going to make about $50,000 again that letter is very important for your legals to work on, i was shocked to get this letter becuase i thought we were friends i tried to call him forget him and work on the legalities of your understanding and your agreements, fax him email but he will not talk to me, all correspondance must go through his solicitor about 150.00 this is right and should happen once you have the strong grounds which I think you have
then and only then contact him but this time tell his solicitor that you want him to contact you and go and buy a portable mp3 player and record all correspondance in this matter and when talking to his solicitor tell him that you are recording you calls and leave the rest to your legals. ( so he tells me) I have offered to pay my part of the loss offer nothing do this only thru your legals I would be doing the opposite and sueing for your losses and mediating solution (50%) but he is sueing me for the whole loss PLUS the profits he would have got if we sold it at the asking price only after you have the adove information can you work out who and why the loss happened and if its a case of s–t happens then s–t hapeens and it depends what is in that jv contract.This is causing me and my family severe stress don’t stress this is business and even thro lots of people think its easy business isn’t make sure you pay nothing and offer nothing unless your legal tells you and even then if itsw a large amunt ad that 50k check with another legal to make sure it might cost you 3k but its a saving, any help or advice would be welcome, i have a good litigation solicitor and i am ready for anything. Even though it was not my fault that he ran out of money i accept my responsibility in entering the JV and am willing to pay my 50% strike this out put a sunset clause in place that if this deal is not mediated by 2 days that offer is off the table you need to get rid of that offer and put the cost to him and then mediate back to 50/ 50 if thats in that jv contract. Please note that he was an active investor, no purchases including the house were made without consulting each other need to document who made the call and who ordered the stuff and was anything in writing in future these costs need to be done by and accountant it put a third party in place and indipendant person and they will say who was calling the shots, the house also was in his name you need to do a title search and get as much info on this house as you can if the hous was purchased in his name as you say your legals will work on this as you are the investor not him . PLEASE HELP ANY ADVICE WORDS OF WISDOM OR ANYTHING WOULD BE GREAT!!! PS I do not do JV’S for a living I do
this one was my first!!
my advice is get a legal that you can work with buy the mp3 and sit down with a big pad know and write as much information about what was agreed to go into this venture and you legal will tell you what type of information he wants.
from my looking at it and this is the string and its lenght I think if the jv was done as it should have been and was draw up by a legal and it is as per your above you are not on quick sand here but he is and I would be hitting him for full losses plus you potential loss in profits and remember there is no friends in business there are people you like or you work for a common goal and even some you don’t like and would not sit in the same pub but you still work to get the goal you want but not friends.
my .002here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi all
couple of things.
first gmh454.
once it winds up in the chase section the guy who is chasing wants it off his desk and closed before it gets any worse and he can be blamed for a bad situation getting worse under his stewardship.
this maybe the case that you have dealt with but is not with the ones that I have dealt with most lender inc the big four want to get out of these problems and if that includes helping to do it they will.
for a bnk its not cheap to chase a loan defaulter and someone has to sign his name to a doc so they will go out if there way to help if you give them a proper formulated business plan of how you are going to get out of your debt.
I am talking with a couple at this moment an=bout a couple of commercials that are abit larger then this amount and they do wish to cap interest etc to get out of the problem.
there is a couple of thing that need to be understood a problem like this first goes to adminisration and then liquidation and if this is in liquidation then yes it is very hard to get it back from there.
you need tyo talk to the lender before liquidation and then you can get a deal together.
the other issue is how do lenders get into this state for me is simple.
greed
the margins have been squeezed with lenders as there loan books are squashed by the rams and aussie’s of this world so they lend on products that they shouldn’t and to people the shouldn’t.
and just like the casino if you play the higher risk games your profit goes up but so does your exposure to risk and thats what this is.
this is not an attack at this poster but is a general attack just because a person has 5 or ten posi properties all over the country doesn’t automatically mean they know what they are doing it means they have found posi properties.
when every you are investing you must know
your risk
your profit or potential profit
your cash flow
and most important if this goes pear shaped your exit structure.
I have spoken to people that have 30 and 40 houses and they tell me they don’t know what they are doing except just keep buying posi property
thats great but if a problem occurs that may well unravell to a heap of problems.
and all that good work comes tumbling down.
its not hard to buy property you could buy some in your dogs name, what is hard is keeping it
holding and profitting from it.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi all
I think he is neither
he is a very good business man and not to sure which catagory that buts us all.
nothing wrong with self promotion most business men live on ithere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi Cazza
I had a lady post some time ago that she was having her lender reposses her house at beverly hills here in sydney
and that she had no way out
I met with her and explain a few options and she went back and refinanced with a lender and haven’t heard from her since she probably will read this post.
I will offer the same to you not sure of the state you are in
this is not a open the flood gates and I will look at every investor in Australia and tell them what I think and see how it can be restructured.
I would look at not dropping the property price but would look at vendor finance back and get some one to buy the properties and reduce debt levels.
three things you need to do
1. put a plan together get the largest lender to help with this as they have the most loss( apart from you) they will organise the interest also.
you need a business plan and they can do this for you
2.get rid of the highest debt or cost first
3. structure so you get rid of the majority of the debt
if you leave 20% vendor finance in the deal and you get rid of the rest to some one you have got rid of 80% of the loss and at say 200k each thats 1mil in loans and if you get rid of 80% thats down to 200k and the vendor finance at say 5% interest
the bank on my calc is behind by 6k per year.
4.So in other words I have hit the wall. Do I just let the banks take the properties off me and go into bankruptcy
never think this the wall is some thing to get over, you just need the help to do it, the banks don’t just take property they want to help you out just as much as you, they want there money back and bankruptcy is the last resort and from me looking from here thats not at this stage at this time.
then main thing is to think of the state you are in as a battle
and its a battle you need to win and to do that you need to rally the troops
and those troops are your lender( they must have some faith at some stage or they wouldn’t have lent you the money) your accounant and I dare say people here
don’t pm me here as I don’t float thru that often send me an email to ultraclean with what state you are in and I will see how I can help but do the above first and I don’t think you will need my help.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wishhi
there is an easy and relatively simple way of doing it but it depends if you want to go that far.
send thru the local court that you have been injured on there property and that you have a liquidated claim.
gets theowner moving and if they are there or someone is looking after the place they will get in touch.
if the are dead then you will get a judgement.
its relatively cheap if you do it your self.
oh and the court only send it to the owner or the owners address so it doesn’t take long.
do remember that if the owner had no intention to sell you just p
them off so be ready for that but if you have a thick skin you won’t worryhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wish
