welcombe to my world

hi elkam
grossrealisation is a form of lending.
usually there area couple of type of lending
normal land lending raw
a property Ie a house or building.
and then there is gross realisation lending which is a portion usually between 66.79% to 80% of the end product value.
this include the building and the land.
It is relatively common in construction and there are lot of different types in between including equity lending.
you can google it and get a bit of info if need be.

Hi All
In the break of the Italian game.
So putting my time to good use.
I haven’t had time to organise chapter two but hopefully it will be by this coming Friday.
I have a little bit of insight into my world this week and it’s not with this project but with another project but has bearing on this project.
I have put in an offer on a property and have a done a lot of work on it so far, we are at the verge of acceptance.
And the vendor swears down the phone and tells you to get —- and don’t ring him again. I continue and get my ground work done and that gives me another few days,
With the real estates, both mine and there solicitors writing off the deal.
Then Friday comes and the vendor asks the real estate for my Mobil ( the real estate rings and tells me ) I get on the phone before he rings me and asks has he cooled off (he must have or he wouldn’t have been asking for my number) he is very apologetic about his bad language and that this project is taking its toll.
So I say this is a soup and you have been messed around but I am still running with this deal and am even further down the path to securing this property.
And told him that he is not the first and won’t he the last that has told me to get —- but that’s my job he had thought I had stopped and walked away.
The motto is
If you line ball a deal make sure that the price you give can stack up on your figures and then don’t give up until the contracts ink is dry.
If you are going to line ball make sure you can take the heat that will follow.
And take command of the project.
The reason this soup is similar is that this soup has been on my table three times. And each time it has gone passed the swearing stage
and each time the ball has been dropped my price has come down.
To explain a quick time line of how these soups work for me is as follows
This is another soup
Property comm valuation 1 mil
I neg a deal for 650 owners say no
Go to auction price reached 640 reserves 650
Owners are an assoc (food association of nsw) has to go to meeting.
By the time they get back to highest bidder, lost interest they come to me not interested

Offer 500 owners no again
Owners send to auction again reserve 500
Same people turn up
Highest bid 450 knocked down below reserve go again to assoc meeting again same merry go round highest bidder lost interest.
Ask me again.
Again me no
Next at the general meeting of the assoc call is to put it to auction again.
I go to meeting and get them to vote there and then that I buy the building for 400k and is accepted and hand over 40k in cash at the meeting and show then the money before I ask them to vote.
so you have a 1 mil val property with a 70% 700k lend with a purchase of 400k and got a tenant in within 7 days of owning it on 38k 6%cpi index increase on a 5 x 5 lease and revalued and take equity out in cash.
Soups are very profitable you have to understand how to unlock then and solve the problem and investor says these are not rocket science and as you can see from above 400k is the normal price for a unit or a cheap house in Sydney and this comm is in Marrickville so it is inner west Sydney.
Working on soups you don’t need to do many each year to make it work.
I only have about a 25% strike rate and have a lot of costs and time that requires to be written off.
This post is more for people to understand soups.
And whether a soup is because of divorce, breakup, death, liquidation, money problems or in the case of the grand hotel internal fighting by lender (Australian bank), government officials and a construction company they all have a problem and they all have a key.
your job is to find that key.

Hi Craigsed
The valuation was done before I purchased
As I ask for access to the loan docs that are on the properties that I look at and assign any valuation that has been done.
The valuation was done for anz and yes it is done on rental and the food association of nsw had give the valuer what they were paying.
And the valuer came out with a value for the property
weather you can say that value was correct or not is of no worry to me as I put a value of a property that I consider it to be and run on that.
wealth4life not sure about hypo’s as I don’t do them,
I do alot of evaluation prior to purchase and check projects to see if they come within my guide lines and come within my profit margins and if they do then I give it a go to try to purchase,
Some come off some don’t if thats a hypo’s then yes we do hypo’s
are these deals real yes they are.
I use a brand new company/trust structure in each of the projects that I do.
You do require to be within my group of investors to get involved and you are right as for the roller coaster as you could be asked to if you wish to invest in a duplex (21% profit margin)one day and a 21mil 5 star hotel (102% return over 2 years) the next (both are closed).
some are long term projects (the hotel) and in areas that most people would think or feel safe investing in (china the hotel).
I don’t nor would I ask people to invest in anything I tell people what I am looking at investing in and leave people to make up there own mind.
If I was give the chance to go a roller coaster ride and told I can hop off any time I wanted and this was a investing ride with rene, harry trig or even one of the share trader (not into shares that much) roller coaster drivers then I would buy that ticket.
Thats not for everyone as we all have our own risk management.
and last but not least as for motivational (wealth4life).
I am not a motivator nor a book seller and this is post is to give people a different type of investment and how they work
If they are not motivational thats ok you may well know alot more then me and I look forward once this project has done its coarse that I maybe motivated by a post similar from wealth4life with welcombe to wealth4life world
and explain how one of your deals are put toghter and how they can be done.
I am here to learn

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hi all
part 2
I have deleted the money values at this stage and will fill them in at a later date they are in my copy put they don’t need to be up at this stage.
Chapter two
This whole project is not going to be short and as I said in chapter 1 this is an evolving project.
First to understand to solve a soup your need to get to the core of it and to do this you have to understand a few things.
1. the players in this game ( and I look at it as a game of chess but this is not a normal game of chess I have a three way chess set and play that with the boys but this is a multi player chess set and you have to move to what you think the others are going to do).
2. The boundaries of the project I.e. a start time that you are going to look at and were it is at that point in time.
3. the outstanding costs on the project
4. the vunerabities of the other player
5. as much history you can gain on your opponents
6. players out side the game that will influence the game(banks, creditors etc)
7. Any stumbling blocks that at this stage haven’t been move or can’t be moved at this stage for what ever reason.

To answer the above question and for you to get an idea of this project this chapter will be on the history of the site and from there you can see who the players are and why it became a soap.
In or around 2003 two owner were approached by Mr. A(I am not going to put names to this project as it does not assist and they may not wish to be named) came to them and offered to option there properties and to put the da into Rockdale council.
The price offered was( ) and the option fee was ( ) (now the option fee was 10% but the didn’t do the contract that way fault 1(I will put in the faults that is my interpretation and as this is my story I think I can))
Mr. A went and paid for the drawing and da cost around the ( ) mark and submitted them to council (councils can be real problems and if you are a council officer reading this then you can see it from my side of the fence).
Council knocked it back.
The drawings were done 5 times each time they were knocked back.
The clock was ticking and by about a year it was decided to take the project to the land and environment court (problem 2 fault 2 if you have not got the money or have not shored up your lend to construct which Mr. A didn’t)
After about 350k project comes out of L&E and now has a da but Mr. A has no money on top of that the goals have moved we are now 2005 and a corrected market.
Mr. A has been paying to hold this option with Mr. B and Mr. C and they have given him 6 option renewals to get thru L& E and the cost of the renewals is a total of( ).

Wait but there more
Mr. B and Mr. C both have lends on the sites with two banks and they have been holding the site also and they have paid in my calcs ( ) in holding cost and have ( ) from Mr. A so they are short by ( ). and the market is falling (banks don’t like this).
So Mr. A comes looking for finance and to get out of this deal so I put a syndicate together of investors to buy out the deal and run with it but Mr. A gets very greedy and what’s to large a share of the pie so the deal falls thru.
Mr. B starts to look for people to get him out of this deal not all just him.
Again it comes on my desk this is another 8 months latter.
But this time there is a couple of added players (in the form of two banks).
So to muddy the waters even more and to add heat.
I bring in a real estate to mediate the deal and his instructions are
That nobody knows who I am until I deposit the property.
I have all the history on the site and all the cost
by this stage Mr. A can’t get finance and Mr. B and Mr. C are on the ropes with a two bank beating the s—t out of them and about to liquidate.
I have a contract at ( ) I take the deposit out ( ) and take off 5% ( ) with an understanding to the real estate ( buyers agent if you wish ) that if they don’t accept that it comes down 5% per time they say no and they bring it to my desk.
Now we have a game.
We have Mr. A, Mr. B, and Mr. C (and two banks that want the site sold) playing one side and me, the agent, my bankers, on the other
We have the AAA in our hand and they have a site.
This is were it gets tricky you need to get the vendor working with you not against you and you need to find a player on the other team to assist you Mr. B was our player, he hated me swore down the phone and the names weren’t nice(the Italian used nicer words to the Frenchman) but he likes the agent so it good cop, bad cop I say this is what I want and I will tell the agent he goes back and changes a little with, I will accept this,
By this time it March 2006 three years latter from the start of this whole deal and Mr. B and Mr. C are at there wits end they want it sold so they agree to sell.
The next problem was the da as the da was held by the option holder this we need to get over but not let Mr B or mr C know that this is what we had in mind mr B an mr C brought in there own real estate mr D and he was the one that sold the site and set up the option for mr A this put a unknown quantity into the pot as he wanted to know who we were or nothing was going anywhere so we had stale mate if I told them who I was they would not have sold the site to me I had a hold deposit on the site with the buyer agent and had everything in place I had the lend organised so the next thing was the contracts.
Unless I told them who the buyers were (we had set up a new clean skin company and trust) not just the company.
So what do I do.
Simple let them stew for a while.

Then go and see mr D tell mr D that we have been told that we were buying this property and if the reason that you won’t sell this property is because you don’t like the buyer then the two bank will be informed and the price goes to ( )and also that we reserve the right to take legal action from our barrister that if then we still don’t buy the site we will take an action for break of a commercial contract as we had put a commercial deposit on the site with a view to purchase and this was all set out in a letter from form a barrister.
This brought all back to the negotiating table and know with the letter it told them who was buying the site.
This did not go down well and lots of calls later the contracts are with us I have posted the well after the contracts have arrived for security of the site reasons and that I won’t have time to do this size of word doc when I have this project at full steam so I have done this one and part three prior to full steam running ( like the chef with I made this one earlier).
Time frames and players
Labour content about 9 months of work 50hrs per week roughly
9 companies
Four solicitor groups
3 banks
Two valuation companies

Chapter three coming up