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  • Profile photo of MoogieMoogie
    Member
    @moogie
    Join Date: 2003
    Post Count: 4
    June 10, 2003 - 1:58 pm

    Sooshie,

    Actually it cost us $557 in solicitor’s fees to get out of the contract… [:D]

    The most important lesson I had from that experience was that serviced apartments ‘might’ be difficult to sell at a later date… so if your counting on being able to access capital gains from this investment at a later date, then I’d say that is not a given…. however if you are satisfied with the rental returns and were planning to hold this IP for a very long time…

    Cheers,

    Michael.

    Profile photo of MoogieMoogie
    Member
    @moogie
    Join Date: 2003
    Post Count: 4
    June 10, 2003 - 1:50 pm

    Tiffany and Brett,

    Do you have any special conditions in your contracts that are ‘get out’ clauses you could exercise ?

    For instance, building inspection, subject to finance etc etc..

    I have been in several situations where I have had to use the services of a solicitor to get out of a contract and on each occasion I have successfully rescinded the contracts (3 real estate deals , 1 new car deal when I was 18 and VERY green [:P]

    From memory I think the standard wording in real estate contracts mentions you stand to lose $100 or .2% of the purchase price (whichever is more) plus your costs of course.

    If the vendor(s) have a good chance of being able to sell the property to someone else, then I think their focus would be on finding another purchaser rather than chasing you through legal channels, especially if the sums of monies exchanged were low thus far.

    As for your ‘INTEGRITY’ issue, are there reasons why you feel you cannot rescind the contract and still maintain your integrity ?

    Having been in similar situations before I’d have to question is it truly integrity on the line here… or is it that you feel bad about wanting to drop these transactions for juicier deals ? in the end, if no one gets hurt, then I think viewing this as a learning experience and moving on is a good strategy.

    Profile photo of MoogieMoogie
    Member
    @moogie
    Join Date: 2003
    Post Count: 4
    June 5, 2003 - 1:36 am

    Hello my friends,

    I have now played the game twice and I believe I had learnt from some of my mistakes of the 1st time round, where confusion and a sense of chaos was keenly felt and resulted in inaction.

    With the benefit of a little hindsight, my team planned how we would approach the game very quickly. We leveraged our team resources by multitasking as much as we could. We saw a tenant first and got an idea of how much they were willing to pay, then we purchased a property with the knowledge that we had invested in a person first and would NOT be in the position of having a property with no tenant.

    My team won the ‘best deal’ with an infinite cash on cash return which frankly was very surprising to me.. why ??? because if I remember correctly one of the winning criteria was the most +ve cashflow property… not the cash on cash return. Whilst great cash on cash returns is all well and good, in the real world the +ve cashflow is finite and I am more interested in how much +ve cashflow I can achieve in a deal as compared to how much money I had to spend to achieve it. Making one dollar with nothing in a deal is also technically infinite cash on cash returns but I’d sure prefer to spend some of my own money and get back thousands. So.. I get far more excited by a good +ve cashflow than an infinite cash on cash return. Cash on cash returns on its own is to my mind a poor indicator of success.

    I found that this time round I was observing the game just as much as I was playing it. Watching what tactics people were employing and how people acted under pressure was very educational.

    So.. lessons learned 2nd time round :-

    – Learn from your previous mistakes
    – Successful strategies of the past may not
    work at a later date, so use the ‘shaper’
    and fit the right tactic to the problem
    – Keep your cool
    – Leverage your time and resources
    – Keep an eye on the game whilst you play it

    I enjoyed the game. A debrief would have been helpful but as Steve said we were short on time.

    Happy investing to everyone.

    Regards,

    Michael.

    Profile photo of MoogieMoogie
    Member
    @moogie
    Join Date: 2003
    Post Count: 4
    June 1, 2003 - 12:39 pm

    Agreed !

    What a weekend… and its no wonder that I feel so tired now… [|)] There was such a plethora of wonderful information to take onboard in a mere 2 days.

    My first action item is to remove a roadblock that has been in the way of my road to success… clinging to my JOB. There is much fear here, because traditional thought says that I have a plumb job. I work from home sitting in front of my computer all day to earn 6 digit salary, but I feel I am a prisoner to my job. It sucks the life out of me and makes me extremely time poor.

    I now believe I can overcome this fear.

    That is such a liberating feeling. My mindset has shifted significantly because of this weekend… so a BIG thankyou to everyone involved in the seminar. You all have helped me to find the courage to face my fear.

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