Forum Replies Created
Hi Mahnovetsky,
I know someone who has had nothing but good experiences with them. They have acquired a number of properties over a few years and have seen their equity increase in size. They are very happy and continue to purchase.
I visited the Jenman spruikers page and what they say about John Fitzgerald is incorrect. The quote “I will show you how you can make $1million in 6–12 months without using any of your own money. I have done it many times.†I believe is incorrect as I have also been to his seminar and he doesn’t say that. He seems very honest and genuine and gives lots of money to his favourite charity for under priveleged youth.
If you want to speak to someone who has been successful then contact me and I will arrange a conversation.
Regards,
James[suave2]
mailto:[email protected]Hi Paul,
As a new wrapper I am interested in understanding what those costly mistakes are. Could you please summarise them for me and for anyone else who is interested so we don’t fall into the same traps.
Kind Regards
James[suave2]Thanks Paul & Xenia,
My reasons are definately cash flow based which will increase my ability to service existing mortgages as well as helping someone invest in property who wouldn’t otherwise be able to.
Cheers
James[suave2]Thanks guys. I really appreciate it.
One last question I hope. I have heard that a special contract is required for wrap transactions which are available only from a small number of solicitors. Do you know where I can find one of these rare solicitors and could you please provide any contact details you have that you are happy to share?
I am not sure if the contracts differ in each state due to state regulations but I will need one for Qld for this current prospective transaction and one for Vic which is where I reside for future transactions.
Warm Regards
James[suave2]I feel uncomfortable saying how many but we have more than 6 which I mentioned in another post.
We started in 1999 and have purchased 1 and sometimes 2 most years since then. We are by no means rich but we have set a goal of purchasing 20 IP’s within 12 years. The biggest challenge for us is not the equity because values in Qld and Perth have given us plenty of that but the cash flow to keep them serviced. Will be looking at wraps and LO to give extra cash flow and of course increasing rent where possible.
Our DSR is currently at around 47% which statistically is tough (most banks lend on 35% or below and some up to 45%) but we are starting to budget.
Keep positive and manage the risk. I just love some of these posts and great to see others with multiple IP’s doing well also.
Cheers
James[suave2]We definately can’t function with one car.
We have a Subaru Outlook 2003 and a Mitsubishi Magna 1999. Nothing too posh.
Unless you are rolling in it I believe that one needs to use as much of their extra cash for more important things such as keeping a rainy day account (for emergencies), taking the family on holidays and of course purchasing another IP.
The 360 Modena Ferarri will just have to wait.
Cheers
James[suave2]Thanks Richard.
How is it different if the purchaser brings the property to me? With the wrap I am considering in Qld the wrapee is looking for a property himself to bring to me to wrap.
Regards
James[suave2]Hi All,
Lots of negativity in this thread so I am going to put a positive spin on things.
Going back to the 6 properties over 10 years mentioned way back, if anyone can achieve this in growth areas (within 25km of Brisbane and within 20km of Perth and other growth areas and sea change areas around the country) then they are on a good wicket. The fact is it is more than likely that properties will double in value again. Firstly Melbourne, followed by Sydney & Adelaide, then Brisbane and finally Perth & Darwin. I know it is tough out there particularly in Sydney. Melbourne has had its slump and is flat but will start slow moving in the next couple of years.
My point is that someone with 6 well positioned properties or more if they can ride out the current slumps and interest rate rises (nobody knows how far they will go so speculation is pretty useless) then they will be sitting pretty. Lets assume (Yes, I know – ass out of u and me) that the 6 properties are valued at approx $350k to $400k with a total valuation of $2.25 M then at the top of the next cycle in say 5-7 years depending where these properties are located they will valued at approx $4.5 M. If they aren’t all positively geared then all you need to do is sell one or two to pay the mortgages of the remaining 4 or 5 down so they are paying a very healthy income. Then just sit back and have a great retirement. If money is needed for medical or going on long vacations then you could sell another one and still have plenty of wealth left for the kids and grandkids.
Ideally one should start this by age 40 or earlier as it may take 10 years to achieve. Starting this at age 50 may be a hard task. But even at 50 it is better to start and achieve 3 or 4 than to sit on ones ass and not do anything.
This is exactly what we have done but have gone beyond 6 properties. All we need to do is manage our cashflow and if interest rates increase by more than another 1-2% then we will just have to find more cashflow perhaps with a couple of wraps or LO’s or start a business or 2nd job or whatever to ride out the trough.
Stay positive and the world is your oyster. Where there is a will there is definately a way.
Cheers
James[suave2]Thanks everyone.
I will check out what the deal is in Qld.
Cheers
James[suave2]Thanks Richard.
I have just spent the last few hours trawling this wonderful site and starting to get an idea of how to put together no money deals.
If I concentrate on wraps for the time being, I am under the impression that I have to get a credit licence to do this. I just read a post that someone in WA said his solicitor said you can do one wrap without needing a licence. Do you know if this is the case in each state? I am in Vic and have an interested wrapee in Qld. Would I need a licence in Vic or Qld for this?
I appreciate any assistance you can give.
Cheers[suave2]
James
