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The Rollercoaster

Discussion in 'Introductions' started by SonOfTrigger, 22nd Jun, 2015.

  1. SonOfTrigger

    SonOfTrigger Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    99
    Location:
    VIC
    Sooooooo, I changed my username from SS, and I guess what it was is not that important but my story is probably a little different to many of the others migrating over and a new name gives a new start.


    I started out in resi property around 2000/1 when 10% returns were pretty common in larger regional areas. Over the next 2 years we (me and two mates/ me and the wife) had managed to buy 5 or 6 houses and 3 blocks of land facing the waterfront. About this time Mrs Trigger decided it was time to decamp from Sydney and return to the regional city we grew up in.

    Transferring with work wasn't an option so as a high flying MBA[​IMG]I figured buying a business was the way to go. We divested the “me and two mates” properties.

    Long story short,

    bought a pub
    marriage split up,
    sold remaining properties to pay out ex-wife,
    I kept the business
    met a lovely new lady
    3 years later went all in and bought the pub freehold for $2M with help from parents

    Running a pub was never my dream job but it was certainly different. We did some major renovations which led to a rebranding and then there was this little thing called GFC and Kochie was telling everyone to eat home[​IMG]. We got really crunched there and burnt through a tonne of cash from everyone we could get it from - $25k a week was our nut just to keep rolling so it doesn't take too many bad weeks to get into dramas.

    Our particular “drama” was getting behind on our mortgage - pretty dumb stuff but we had tapped out every source of funds we had. We got straight, cleared out all our supplier arrears and we started whittling down the arrears (3 months) bit by bit until as a birthday present for me the bank sent in receivers.

    Getting legal advice and finance advice was a nightmare - the sniff of desperation must have been in the air as everyone had their hands out for "fees". After finding out our "lawyer" hadn't even been corresponding with the bank we had to get a new lawyer - 1 year down the drain. I started reading up and learning about famous cases such as Amadio where the little man won against the bank. Back and forth, back and forth, another year down, bank still chasing us.

    Eventually we end up in mediation with the bank. They tell us they sold the freehold and business for 40% of what they valued it at when they lent us the money, and they also provided the finance for the new purchaser. With receivers fees for a year or so they still wanted well over $2M to settle.

    Eventually we struck a deal that meant the parents kept their property and we kept our PPOR and would pay them cash – if we could get enough in a loan against the PPOR. Considering the state of our credit reports our broker did a great job (not a Somersoft broker) and 3 years after the nightmare began it was pretty much over.

    So since deciding I was a great business entrepreneur in the making I was probably down $1M. Humble pie anyone?

    Next steps? Well salvaging something was a pretty good result considering where it could have ended up. Our credit files are almost clean – we’ve paid out most things so far. We still have some blocks of land in a popular area we’d like to build on and personally, I’m halfway through a law degree (aged 41) – after the issues we had with lawyers, banks and brokers I think this is an area I can help people in the future having seen the other side of the fence.

    So there you have my “investing” journey over the past 15 years.
     
    EK01 and Biz like this.
  2. Biz

    Biz Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,476
    Location:
    Sydney
    I liked your post. Not the situation you found yourself in but the honesty is refreshing. Not from just you but some other people who have revealsed a lot in the introduction forum over the last few days. It's not all smooth sailing and it's good that people also see how difficult "trying to get ahead" can be.
     
  3. EK01

    EK01 Member

    Joined:
    21st Jun, 2015
    Posts:
    19
    Location:
    Brisbane
    Loved that Transam - desperately wanted one until I saw the fuel consumption.

    Your story of business and dealing with banks/lawyers is sadly all too common in this country. Good luck for the future!
     
  4. SonOfTrigger

    SonOfTrigger Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    99
    Location:
    VIC
    Sometimes it helps to see that things can go wrong very quickly, and it can be cathartic (for me anyway) to put down in words a very tough five years. I know I'm not the only one to have made a poor decision or three but I still think there is light at the end of the tunnel.
     
  5. SonOfTrigger

    SonOfTrigger Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    99
    Location:
    VIC
    Thanks! I always loved the trans-am too. Michael Connelly wrote about the Lincoln Lawyer, perhaps I can be his down at heel version, the Trans-Am lawyer;)