Forum Replies Created
I have the rent to buy options massive pack the story is exactly how ricks says to set it up
I never said vendor finance was a problem although you do need a license now.
This part is worrying the seller was selling homes without a real estate license is the main reason he is in hot water he should just get one it cost few hundred bucks.
sounds like the scheme is more of a headache then it’s worth.
Paint it how you want the fact is they are cracking down on RTB schemes like they went after shady VF operators.
I think the way it’s presented to the user in the first place buyer of massive pack is misleading and over priced for a intention to lease and option contract I don’t want to know the speakers life story I just want to know the strategy, and how to implement the strategy.
and maybe a mentor for the first deal.However the strategy would probably take an 1 hour to explain I don’t think anyone should be paid $6000 an hour and no one would buy the conference tickets.
if the spruiker was worth his salt why charge $6000+ for it would it not be better to
take students to deals and get his money from that instead of spruiking some RTB scheme that is borderline legal
how many more deals do you think they could do if the conference was free and deals were ready to go with the spruikers profit built in? of course it will never happen becuase doers do and those who can’t do teach.
I bet mr otton makes the majority of his money selling conference not doing deals.
Most people selling strategies sell them because they have exhausted the use for themselves
The line I do it because I like helping people just doesn’t cut it with a few thousand dollar price tag….
KeyStrategies wrote:Good Morning ABCDYour question could be "How long is a piece of String "? SO the answer is It Depends
Which mining areas – WA, Qld, NSW or Victoria?
Which Lender?
Which Mortgage Insurer?
How big is the Town?
Which mining activity – Coal, Iron ore or Gold?You need to be more specific – My experience (which is limited to coal mining towns in Qld and NSW) is the major banks will lend 80% of Valuation or Purchase Price whichever is the lower.
Ideally this question should be answered by a Lender / Mortgage Broker
Hope this Helps – Cheers
Thanks for the reply
looking in bowen basin
emerald blackwater dysart middilemount etc
Isn’t this the strategy that is currently taught by Rick Otton?
sounds the same to me food for thought…
Tracey B wrote:I checked those Moree ones out a while ago too, actually on 15 February this year so they've definitely been listed for while.If you'd like to turn on private messages in your profile I'll send you a link to something else I'd consider in the current market.
Thanks my Private messages are on I am looking for 10%+ I had a look at the Tassie ones however 7% is to low in what I am trying to achieve
which is not to be reliant on the guberment
xdrew wrote:You arent the first person to stumble across these delightful Moree properties. I was aware of them when they first tumbled onto the market several months ago.Do your homework on them. And then you'll realise that the risks vs returns scenario is a lot more risks than returns.
The excuse used by the landlord is he evacuated the property for serious upgrading. Now as a landlord the only time I would be doing that is for a total renewal. Otherwise its to be done gradually because you remain reliant on the income.
The property may be a gem. But from having contacted the agent on them .. be wary. All is not as it seems.
Thanks for the warning I didn’t think everything stacked up as it seems which is why I posted here I have no idea of Moree
besides it being known as a town with a high crime rate.
JacM wrote:Here are my thoughts:If I found a deal I thought was unmissable, I don't think I would post the link on open forum in case anyone pinched it (wink).
Firstly, I would double check with the agent that is currently managing the leases what the actual rental returns are (and would request to see this in writing through my solicitor), and also compare it to the asking price of rents on similar properties in the area.
I would also speak to Moree council about whether in fact this site can be strata titled, and if so, whether there is anything obvious they see that you would have to do. Some examples might be "we would demand you create a large concreted area for visitor parking" or "we would demand you upgrade the sewer pipe both on the property and on the crown land in front of the property"…… etc. I would also speak to a Surveyor that works the Moree area to understand the likely costs of the strata titling.
I would then look at the historical figures of how long properties take to sell in Moree. Such figures are in the rear pages of the Australian Property Investor Magazine. If your strategy is subdivide and offload, you need to have a solid understanding of how long the strata titling will take, how long each unit will take to sell, how much these processes cost, how much the holding costs (eg bank interest, insurance) will be while you wait for all this to happen, and the relevant capital gains taxes (it would probably be unwise to sell all of them in the one financial year).
An agent will of course tell you this is an amazing deal and you can make $x. But assume he is telling you nonsense and check these figures yourself.
Anyway. It does beg the question; if there is such a large amount of cash up for grabs, why is the current owner not doing it him/herself? Or indeed, why hasn't the agent snaffled the deal for himself?
As for who would finance it, don't know. But 12 units on one title will be considered commercial finance.
Thanks for your reply I thought they would have to be commercial last time I looked into a motel not the same but similar the lend was 50%
not 80% as touted by the agent this made me weary right away. and the rates usually at least 2% higher then resi lends which would make the whole deal fall over on commercial rates.
I used the current 10.7% it’s actually returning now as the listing says will be relet easily for the quoted 12%
this line raises alarm bells will be relet easily for more then why isn’t already instead of having 50% vacant not the sharpest knife in the draw but even I am not that gullible.
I am looking to replace my dsp income so would be looking long term if what the agent said was true would be a good start but I don’t tend to believe agents unsure why that is lol
As far as I was aware once over 4 units it has to be commercial happy to be corrected though.
not to worried about posting the link I doubt I could lend on them without putting us into financial hardship anyway.
It stuck out to me simply becuase it had built in equity enough income to replace our current income to move forward for other investment properties in the future.
this wouldn’t be the case on a 9-10% comm lend though which is the rate we were told on a motel.
christianb wrote:It's an interesting question.
Perhaps it has to with the structure you use.
I'm not an expert in these matters, but there are others on here that are.In any case perhaps it could work like this:
You form a unit trust with a corporate trustee to purchase the property.
You provide security for the trust using your equity.
The trust has your daughter as beneficiary.
The trust should be established so as to allow undisclosed family members to become beneficiaries.Good luck with your research
Thanks Will have to talk to my accountant this setup
Shape wrote:Hi,I don’t think there be any organisation that specialize in disability pension; as it’s diff in all states and only a very small part of the population.
Just a few tips;1. The disability pension is taken as a “salary” in the bank’s eye- once your on a disability pension it’s very hard to get off…and the income is accepted at 100% full rate
2. The income you get from your new investment is also considered an income
SO really you have your disability pension + rental income as your “serviceability” income….so the question is; is that enough to service your loan + afford for standard living expense? ie can you afford the loan if the rate was 9% ( 2%+)
3. the disability pension is also mean tested; so it’s a good idea to give centerlink a call to see what would happen if you buy this place…because this would affect your ability to make repayments
4. Since you have a bit of equity in your current home- a deposit is NOT going to be a problem; it’s more if you can afford the loan or not ( in the bank’s eyes anyway)
5. For a 10% Yield property it will be located in a rural area/ mining town Or you must have done some creative investing ( renovation/development etc)
just some food for thoughts.
Regards
MichaelThanks for your help to answer your question I have a few creative ways to get property from 11-14%
returns 4 2bedders on 1/4 block etc however the bank isn’t going to lend even though the deal would create 150+k equity our biggest pitfall
is we can’t simply buy 1 property as it will be counted as our full income if you earn $40,000 from a property then you get $0 from centrelink.
so our actual income would be closer to 6-8k on the above 400k purchase scenario.
Bit of a catch 22
