Forum Replies Created
Hi,
>>find a lawyer who has experience in this type of setup.<<
How do you find such a person ?
What do you think that will cost ?If you go this way (not necessary in my opinion anyway) it may be a good idea for you to first come up with a draft so as to save some costly solicitor’s time.
>>it is impossible for you to think up all the possible scenarios when one has no experience.<<
This then begs the question whether one really should ought to go into a joint venture if it is going to be a matter of ‘the blind leading the blind’.
The next question would have to be ; O.K. I accept that I (and my partners) are inexperienced so how can we break into this field ?
Any thoughts on that Aussierogue.
BTW, I am NOT looking for partners. It is hard enough having to cope with my wife putting her nose into
my affairs let alone the wives of other possible joint venture partners.If you have had an opportunity to have read the article (which I mentioned elsewhere) about John Saunders (of Westfield fame) you would know how he and his partner Frank Lowy thought about that aspect.
Pisces
Yes I agree, it goes without saying that there ought to be a written agreement between the parties.
What do you think however what should go into such an agreement ?
Care to assist Aussierogue and put a draft together
(using the 10 townhouses development proposal as an example) ?However my question was what kind of pitfalls.
O.K. you are right, not having a written agreement could cause misunderstandings. But what else could cause a problem ?
Or is it better to play it by ear ? After all we all have the same outlook (i.e. to make some money in real estate) and we all are full of goodwill to each other).
Pisces
Saving heaps ?
Let us assume the rent is $ 100 per week and you self manage.
If something goes wrong with the property, let us just think about some of the simple things which could go wrong.
1. washer needs replacing
2. roof blows off in the storm
3. something goes wrong and there is no electricity suddenly and you get a frantic phone call
4. tenant leaves suddenly and the rent is in arrears.
5. tenant goes on holidays and their teenage son has several all night long drunken parties with damage caused to the house. Well, not much damage, just some walls kicked in by some drunken lout.
How do you envisage handling any of the above mentioned matters from interstate ?
Will you climb into the phone for example and get some quotes for the roof repair ?
How many quotes will you get ?
Do you have a list (or phone book) of tradespeople to call ?
As you are dealing with a tradesperson whom you don’t know anything about (unlike the managing agent) would you first of all make enquiries about their reliability and the quality of their work ?
Would you have a telephone conversation with the roof repairer to organise the repair or will you go and see him personally ?
After getting a number of quotes from roof repair people and finishing up with quotes varying between
$ 2,000 to $ 2,800 I guess you go and check out some of their previous jobs ?Let me correct myself, what is even more important than the quality of their work is to find out whether any of their past clients are so satisfied with the job they have done that they answer ‘Yes’ when you ask them whether they were so delighted with the roof repairman that they would have no hesitation to use them again.
Would you send these people a letter asking them these kind of questions or would you be pragmatic and utilise the phone to find this out ? Or do you think a hands on approach is better and ask them in person so you can judge whether they perhaps are bullshitting because the reference sounds more like they are the brother in law of the roof repairer ?
Will you therefore instantly hop onto a plane to attend to the problem or will you catch a slow boat ?
Are you able to get time off from work easily in an emergency ?
Do you still think it is best to self manage and if not, then what would need to happen for you to change your outlook ?
Pisces
What is the LVR you want to borrow ?
Pisces
If some time has passed it may not be too difficult.
What I would like to know is who ordered the valuation.
There have been several situations recently (in Queensland) where the valuations were cooked to favour the vendor/developer.
Pisces
With a small sum of money one cannot buy a commercial property by oneself so a trust isn’t a bad idea as such.
But …………., unless the trust will be listed you may find it difficult to get out when you want to.
There are actually many such kind of trusts listed on the stock exchange.
Personally if I ever was inclined to buy shares in such a trust I would look for a trust which had several assets.
Pisces
>>Also, be careful that your ‘spotter’ is legally entitled to receive a commission, in the state they are in, for a real estate related transaction.<<
Depending on how the agreement is worded, I doubt that a (real estate agent’s) licence would be required.
Cheers,
Pisces
It was very interesting to read Rachelle’s (one of the Mappers) perceptfull comments.
As Steve describes it in his January newsletter : “At the time she didn’t have the necessary money to close the deal, and this was just one of the many challenges she faced along the way. Her comment on reflection was, “There were plenty of times when I thought the deal wouldn’t go ahead. Yet my doubts were just obstacles, and so long as I kept taking action (and seeking advice), I made gradual yet ever increasing progress.”
It is clear that the Mappers’ pursuit is very much a mental journey and therefore, anxious as we all are to know the outcome, our questioning and wanting to know facts and figures will only add more pressure onto them.
Personally I am quite happy to sit back and wait for the 12 months period to expire.
I also would like to tell the people who, for whatever reason, discontinued, that this real estate journey, like life, is a continuous learning process,
and that there is no such thing as failure but just a series of learning experiences.I am sure that I speak for everyone here when I say that we wish them well.
Pisces
>>The benefit of hindsight would be a truly wonderful thing to have.<<
What kind of remark is this Monica ?
If it was meant as a comical general remark fine but if was meant as a comment on Steve’s suggestion then I would suggest that it sounds as if you spoke before you actually had read the newsletter.
The advice of trying to ‘find a solution’ is excellent. Thinking outside the square is what makes one a magnificent winner.
And, the most wonderful part of thinking outside the square is that it works and produces results in all kind of economic climates.
I am however still waiting for someone to share some examples with us.
Pisces
41 and 43 sq. metres including the balcony as well as TWO bedrooms ?
Forget about it, sight unseen.
Very difficult to obtain finance., not only for you but also for the subsequent buyer.
If one wants to invests in NEw Zealand go and see for yourself or contact Westan or Mini who are on the spot.
Pisces
I know where you can purchase two units under one title that are $185,000 returning over 7% net return.
It is sometimes difficult to borrow for properties under 50sm, however if you would like some information I would be happy to send you the financials etc.I cannot see anything wrong with buying a property for one’s own enjoyment NOW, if that is what one really wants.
If one’s investment plan works it may possibly set back one’s projected end result by a year or even more
but so what ?What’s the difference ?
I’ve got a friend who for years wanted to buy a waterfront property to live in. He is extremely wealthy by most people’s standards.
Unfortunately he approached the purchase of such a house the same way he approached the other properties he bought for investment purposes i.e. by making such low offers that anything he buys is a good buy.
As a result he never finished up buying the house he really craved for.What i am saying is that if one wants to buy something for oneself then go and pay the price required to obtain it.
Pisces
Well at least you will immediately get the $ 4,000 released by your solicitor.
It certainly isn’t a good position to be in as far as a vendor is concerned.
What happens if one needs the money to settle elsewhere ?
Pisces
O.K. I can explain what is happening and so can you if you go to http://www.pastornet.net.au/jmm/articles/9841.htm
Pisces
Another question for Guru,
What happens if we replace the =rand(200,99)
and type instead =rand(200,97)
or for that matter =rand(200,98)
Will the same thing happen or will something else happen or perhaps will nothing happen ?
Pisces
Well here is a question for you Guru.
When you follow your instructions how many such pages are created ?
No cheating please. Tell us off the top of your head.
Pisces
Where does one draw the line Richmond ?
What is and what isn’t advertising one’s services ?
And what is networking and what constitutes blatant advertising ?
I still do not know. [
]Pisces
I guess it depends on how smart these retirees are.
Dumb, if they are like a relation of mine who sold in Manly and bought in Gosford. The, now widowed, wife can no longer afford to move back to Sydney.
Smart, if they rent in the small town, keep their present house and rent it out at the higher rental.
Pisces
I am finding that the Australian Bureau of Statistics are now charging for a lot of their publications,
Anyone living in Sydney is however able to look at their publications in their library free of charge !!
They are (were ?) at the back of the Sydney Town Hall.
Pisces
Richmond and Markpatric, I have never been to Rockhampton and haven’t got a clue what the state of affairs is there.
The reason I posted the way I did was because it reminded me of the time when I was involved in some real estate in Parkes and the local publican told us that BHP for some ten years had had some gold mining claims near Parkes.
At the time (1986) the publican said “this time however they must be very serious about the project as I had a party of engineers staying at the motel the week before who had come to look at the water supply situation.”
(to mine gold a lot of water is needed to treat the ore).
His conclusion ? That development of the mine was very close to become a reality.
The outcome ? I think it took close to another ten years or so before it actually happened.
So big projects can take a long time to come on stream.
Pisces
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