After you’ve got the approval letter, the loan documents are produced next. When you receive the loan documents read them and the approval letter cover to cover – twice. Understand how the bank’s fees will be charged and, if at all possible, model … [Continue reading] about Strata tip #75: Buying – The Finance Offer
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Strata tip #75: Development financing – Pre-sales Review
Before that critical first advance your pre-sales will be tested. That means at the least the pre-sales contracts, and the circumstances of their execution and current status, will be examined by lawyers engaged by your financier. While the … [Continue reading] about Strata tip #75: Development financing – Pre-sales Review
Strata tip #74: Development approval – Check your DA
When you get your development approval it’s critical that your whole team reads the conditions (all of them and not just those that relate to their area of expertise). They should then revert to you with any suggested changes or commentary. It’s … [Continue reading] about Strata tip #74: Development approval – Check your DA
Strata tip #74: Buying – Due Diligence Issues
Risk = impact x probability. It’s common sense that if the risk of a catastrophic event is infinitesimally small then you won’t design your whole business around avoiding that risk. Likewise, when you’re buying management rights you’ll be told … [Continue reading] about Strata tip #74: Buying – Due Diligence Issues
Strata tip #74: Management Rights – Remuneration reviews
The accepted standard in caretaking agreements these days is for a CPI review of the remuneration every year. Typically, the remuneration cannot go down on a CPI review. Every 5 years expect a market review; that is a review of the remuneration to … [Continue reading] about Strata tip #74: Management Rights – Remuneration reviews
