Forum Replies Created
hi DLPP
yes reit can be a vehicle for cash flow but with the trusts currently hitting around 11 to 12 % this one would need to really push up the margins, with the student and retirees I havent seen the returns but with a 9.5% you areup there but with the westpac one you not going to get that in this market with 6 to 7%.
all trusts are different and listed or unlisted they have there good and bad points but unless you are over the 10% return you are in trouble to get investors.
unless you aim at the mums and dads investors or there super funds.
oh westpac have those and so do ing and while ever the goverment push super as the way to go then they will invest in these trusts.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi all
couple of things tat after talking to my guys may be another reason that west pac is in volved and its only hypo so don’t read anything into it.
before I mention I would like to say that a board like this is there to inform and dohicky there may be lot (“what a bunch of misinformed people there are on this forum”). people that need to learn and the only way to do that is for the people that understand or now explain it without sending the people that don’t running to a corner and not posting again people like me are very fagile.
but I digress.
the other possiblity is westpac is doing it as 90% lend 15 years to the dha its just they are taking the ownership position.
they give no doc loans so this is a 90% no doc the dha sign long long term and they lend to them selves if this is the case it would show up on there domestic lending ledger and would see a lump
so in essence you would be no doc to yourself.unusual no, done all the time you lend from the back and lend back to your company same as novative leasing.
return isn’t great but neither is lending to mrs smith on the corner.
the deal could have some buy back in it also haven’t seen the contract so hypo.
it is unusal if this is the case that there was such alot of media as its run of the mill lending.does the same media get coverage when a 2000 unit sub division in sydney is a approved and the developer says he’ll give vendor finance for the land whats the difference here if this is the case.
remember banks have a big problem and that is they must lend and if westpac got a discount and they would have on this 100 mil and that discount is around 10 to 15% off retail then no doc is no problem.
my.002here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi top bloke small world that link took me to a page that has is part of a web site that gives boats over a mil for sale and gives lots of info on tax havens so have been there a couple of times. what peoples thoughts on malta any investors in there of all places. here to help
[Sprucing and advertising not permitted.]
hi guys
couple of things we do sell to china and lots of it is
1.knowledge on how to build things including there buildings and architecture lots of it is done here and
2. investment there is lots of chinese and asian investment in australia in real estate we may not like it but its here and they have bigger pockets they most.
as for the post shpuld we sell uranium my answer is no we should push for geotech thermal technowlogy which is where they drill two hole or multi holes pour wat down one and high temp super heated stem come out the other and that is tapped to a turbine the cost to setup is the same as coal but run cost are about 5% to coal or uranium and no effect on the enviroment this is alot better then any usable fuels the first turbine will be running before the end of the yearhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi steve
couple of thing
1. investing for growth is ok if you are in it for the long haul and if you wish to draw equity out along the way both of which I can’t see westpac in it for.
2. low cost of money yes they have a low cost of finance thresh hold but that low thresh hold is still expected to return a return that the share holders want and at 6 to 7% thats not going to happen.
3. I cant even see this as a hedge possibility as they are buying into dha which does not give the movement to sell for a quick growth in say 5 years as nobody can move in.
4. the only possible reason i can see is westpac have told its people to get the money that is hanging around in there account and get it out working for them macquarie has tried the 100% top up deal at 0% on the 20% above 80% lends and westpac are trying this.
5. I have had a look at building property for dha here in sydney but the returns weren’t there.
the trouble with all these banks are that they have burn’t the developers to the stage that now they can’t lend to them and they need to lend somewhere.
6. my idea is that westpac will do the same as seed capital for a listed trust that is you invest seed capital into a unlisted trust hold it with min 5 mil( in there case100mil) for 12 months and then list as a listed fund and try to flog it off to the superfunds and maybe overseas investors, this is not unusual the only problem is the unlisted usually does a return of over 15% or no one looks at it and for westpac to pull 15% out of resi property is a big ask.
I think someone has not pressed the right buttons on there calc because even a superfund would find it hard to explain investing in a listed trust doing a 6% return and doing it long term unless westpac are next going to buy lj hookers so they can sell the properties also.
I think you will see more and more of these types adventures into different markets as the banks keep getting hit by what I call the active lenders rams, aussie, mortgage group,st george even nab has change tact mid stream and a heap of others.
I am waiting for the big boys from asia to start lending the hsbc,bank of china,asia development bank with there 2% lending and I don’t even think they would buy this fund if it listed.
seed capital for unlisted trusts to go to listed runs at around 41% p/a so this fund doesn’t look very attractive.
my .002here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi steve
not sure the rational of westpac yes it does get its money cheap but the dha in sydney run at around 5 to 6% and I don’t think I would be investing in this trust.
I think you will see more banks going out of there way to invest as they have to lend there money some where.
resi property is a good investment but large banks should be looking at better then dha housing me thinks as the return just isn’t there yes the do give you a 10 year rental but at about 6% and you have to hope for growth in the area that they are in.
I will wait for macquarie to jump the same and if they do maybe my rational is wrong but I wouldn’t hold my breath.
westpac are doing some very funny things at the moment and note sure why they just put up all there consting on accounts atm etc not sure if the driver has fallen off the horse but someone is pulling the wrong strings for me.
I hope they do well and when they have a correction in around 2 years usually it takes that long to find out, the properties will come back on the market.
my .002here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]dazzling
when are we seeing your black sunnies in sydney.
and missed you tamtam at somersofthere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi jarrah
since you have but in that post the moderators are now talking of putting a toll of the keys so you will get so many free button presses before you will be sent a key toll charge to be paid in lollipops its going to cost me a fortune and dazzling fat from eating all my lollipops.
we will be coming to you
for me( ask and you will recieve)will be more loolipops
dazzling( ask and you will recieve)lose lollipops.
so your global expantionist mind could control the property investor lollipop market.
I see behind your plan or is this just paranoiahere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi
dazzling in the blue corner terry in the red corner and gross with the whistle with I want a clean fight.
couple of this sorry dazzling but there is nop such thing as (as compared with my Private Banker) because if your a banker you arn’t private even big mr packer uses the mere mortal comm bankers and they arn’t private nor are they friendly they are money hungry, leach sucking, oh sorry just about to climb on a high horse and got away from myself for a min there,
I must be one of those mr smith as i go to lots of lenders including banks and they are all the same it depends on the deal and who at that time wants to lend.
oh and as for changing banks lending criteria try this from hsbc
75% gross realisation lend full lend exchanged on the land while it was going to settlement 6 weeks they changed there lending criteria to 60% gross realisation lending and as the lend was not complete they said that the land would be 75% lend but the construct would be 60% the deal fell over and guess what we are still holding the site lucky it was a raw site and need time to go thru council so getting another lend is not a problem.
would they repay our fees already paid because of there change in lending criteria no
as the land lend was still the same.
I never go with only one lender and think it would be close to suicide to do so.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]guday dazzling
not heard from you for a while.the main problem and I am haveing it at the moment and mine arn’t crossed is that they look at service ability and if they are all crossed the lender says wooo if you get a problem you can’t cover these loans and as one is relient on another its a deck of cards problem.
even with my ellaberate structure serviceability is the main issue and when you have done term deposits for the 12 months of interest etc and serviceability is still an issue if its all crossed you have no hope andif you have gone even worse and put it with one lender my advice is to buy a shovel and a metal detector and go looking for gold as thats the only way you are going to get finance or in your case ( not sure what you go prospecting for oil with I sub pose an oil can).
if you think that you will be expanding at a fare rate then you are going to require funding and my advice is never do two lends thru the same lender in one year and give your lends out just like you would a tender to different people to get the finance.
maybe a little out side the box but I like that.
remember bank managers are really nice when they like you and they can lend to you, then when they can’t they change hats and can be unfriendly to your requestshere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi tamtam
sorry put must disagree with crusher as its not a 107% lend if you are putting up other equity its 80% lend and then the rest lend on the other equity.
If you are going to do this its is alot better to get a line of credit on the first property draw out on this line of credit to put in as the deposit on the second property and then there is no cross collat.
put that is once you have a property.
in your case you need to first find out how much you can lend, the best place is a top four bank, nab I like.
they will sit down, run thru all your info and you will come out with a figure and all costs inc approx legals and the rest.
then find a broker and he will better that figure.
next find a property say 200k
the next I am reading off a corn flake packet and not giving it as advice.
you get the vendor to either sell it for 240k and vendor finance back the 20% or give you a discount of 20%
there are as it says here on the side of the box, lots of other ways and its says don’t put these on any bulliten boards
but ha most brokers read these boxes anyway so have a chat with them.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi learn&share
not a moderator but is very handy when you have put some thing in there and you go oh sh– shouldn’t have told that info yet as its still sensitive information must admit I have used this tool more then once.
we still need a up load button.
swap the reset fields as I never us that one.
and I like paranoia and the guy looking over my shoulder, following me, likes it tohere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi safeashouses
some do but you shouldn’t a lender won’t lend on a development unless there’s a 20% return and if they won’t lend unless it get to that level, I don’t develop unless it gets to that level,
simply unless there’s enough profit in it I for one won’t do ithere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi jaffasoft
send it again to me at [email protected] thankshere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi jaffasoft
as arnie would say I’m back and yes am a little busy but will have alook got two deals going thru lending at the moment so will have a bit of a look over the next could of days and didn’t get the winzip file but do have win zip to unzip files.
I would design it for a 12 inch screen rarther then a 14 as its wasn’t much room to move but will have a look again.
will come back to you here.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Chelley
they way around the banks is to purchase in different entities each time and different banks try to get a 90% lend or go for no doc 80% lends which ever as for massing units stevs way is but one way and everyone needs to get a system that works for them.
70 times 100k properties is 7 mil but could be doing a 7% return but 10 x 900k properties doing 20% returns is alot better its not a volume issue its quality that you need to look at don’t worry about the amount of property but the returns and the growth of your porfolio.
with a neg property( usually high growth) you attach a posi(comm) that wipes out the renat loss then you have growth and neutral costs.
As for over 7 properties thats relatively easy get a 10 unit development site work it out at a 21% return.
Get a lender to lend you.
Get a builder to build them on a fixed price.
Then refinance with the company that lent you the money to build and now you have 10 properties with funding and you have 21% equity in the property.
or join a group that does similar, there are lots of groups you just need to find them.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi myjamfactory
couple of things
first get your sister to talk to the salvation army they are at hurtsville they will get a planner and a broker to negotiate what she can do and tell her not to get into any refinance deal unless she has spoken to them or a broker.
second get her to talk to the lender she has and do that know they will also give her some options that she can tell the salvo’s
next that to the dept of social security and they also may have a program that can help.
you are not going to do much 11,000ks away but i might as I’m in ashfield which is under 15ks and if she needs help get her to email me and I will meet with her and see what we can do.
this is not an open ended lawrence will come and help you but if the lady need help then I think I can get that help, if she can’t do it on her own.
pm me but the best is [email protected] not saying I can save her but will give my best shot.
Lawrencehere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi all
a very funny thing about business is that I don’t have these problems but maybe thats because I’m ruthless.
I look at a deal and if it doesn’t work for me I throw it in the bin.
if it does then I go after it at the value that I put on it and don’t worry about the seller/vendor that much.
If I get it for the value I put on it or less then I have done a good deal and if the deal is going west then I change the deal to another type jv what ever and get the deal that way.
I would say that I am ruthless if the deal does stack up and I need to get the deal.
I do respect my fows and do not under estimate them but this is a numbers game and I am in it to win.
my deals come from lots different areas and usually have a problem and so to get thru the little problems.
yes you do need to be both tough skined and a relatively tough dealer
in some case very rough when dealing with a project that is going to loss someone alot of money and make you hopefully alot.
there are lots of different types of investors and yes I do respect and understand most of the views in this post but at the end of the day when you work with this type of business every day I would class and I think my accountant would agree if you asked him that yes you do need to be a bit of a barst— some times and you need to take a bat to a lender some times, well I’m the bat carrier and I tell them in no uncertain terms what I want and how it is going to happen.
and do score home runs.
Its not win at all costs but it is winhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi wullah
couple of things
1. luck I wouldn’t work on kuck oh sorry luck you need to make sure you have a min profit margin of 21% or don’t do it.
2. fixed price and time are the way to go and put it in the contract contingency,
the contingency only come into place if you run out of money and you don’t want to get there its usually 5% and this should be included in your budget and is calculated as part of the cost of construct and the 21% is on top of this ( if you don’t use it fine you get 21% + this 5%)
3.the depositis usually between 5 and 10% you can ask to have it released but in this market you can also ask the buyer to give you the keys to there car to run around in each day, its not going to happen I have had them ask for the deposit to be help with there solicitor as they don’t trust ours or the real estate but usually the real estate holds it in there trust account and you don’t get access to it( and if you have done your figure right you don’t need to either)
4. I don’t sell of the plan for a couple of reasons A. you dilute the value or price of your product you are giving a reduced price to get a sale but if you have done you work your don’t need to change the price( in this market that is supposed to have fallen a 2br unit in marrickville that has taken 12months to construct and finish was budgetted with suncorp at 480k on my budjet spread sheet and that was a projected price.
it has sold for 480k, on the dot and in a supposed fallen market hence suncorp don’t ask me for presales)
and the other thing is if you sell a product off the plan you have set a price, if the area changes while in construction you can’t meet it because of this pre sale price,
you can’t increase the value, as a valuer will go off comparative sales.
and if you discount it, its worse.
also If a person does want to sell out of my projects as I hold my properties I don’t need a discounted valuation to be logged.
lender love it because it gives them a warm inner glow well buy them some ovalteen and go with no presales.
my .002here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi jaffa
the screen is to big and can’t cut down the size nor can I get a programme that when I down load it open it again so had to do it off the web site.
it doesn’t let me change any values so I cant see if the formulas are right
I can clear all fields but you maybe able to tell me how I read the whole page do it for a 14 inch and the laptop will be fine.
will have a bit more of a playhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
