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hi, guys. I have a multileasing investment property as well. Do you know any insurer will do multileasing insurance? Thanks.
Hi, Finspec.
Thanks for your help. I will try to reach these people tmr.
Wealth Accumulator wrote:The difficulty with the property arrangement would be (without leaked private information) finding the distressed property owners who are willing to own up to it.
This is a classic scenario to look for motivated seller. It is no different than many investing strategies do. It is common in real estate investing. The trick is what you do with the motivated seller – how you negotiate between the seller and the lender.
Wealth Accumulator wrote:it seems like the old "vulture fund" approach where people with the money look for companies that have a good product but have been run poorly and swoop in when they are in difficulty and buy them out – smarten up management and list the company for investors to buy them out.There is no such a process to smarten the management in this strategy. The key is to reduce the debt.
Not even you, Short Sell property is also some thing new to me. But I don't feel surprise about it. It just makes business sense to me. Going thru the mortgagee repossession takes a long time for the lender. During this period, the lender is losing money for the legal fees, repayment, commission etc, etc. And a lot of trouble to deal with.
Recently, I finished a course from TAFE for real estate agents. One of my teacher works closely with the banks as a valuer. He told me, the banks are actually happy to see such an offer so that they will get rid of the bad debt and stop losing money on the property.
Wealth Accumulator wrote:Beware of short selling – anything.The idea is that you "borrow" someone elses asset to sell it now at todays price and then buy it at a cheaper price in the future – an arse about way of speculating on prices going down rather than up.
Hi, Wealth Accumulator. Thanks for your advice.
However, I think I might have misled your understanding. The idea of short sell in property is not "Borrow" the property from someone else to sell it and "buy it at a cheaper price".
Instead, to negotiate with the current lender to discount the existing mortgage (reduce the debt) before an investor to buy this property. Of course, the price to buy this property from the vendor must be equal or greater than the reduced debt balance.
In this way, the vendor who defaults repayment can now walk away from the property without leaving a bad record in his/her credit file or declaring bankruptcy. At the same time, he/she pockets some money(the difference between the sale price and the debt balance). The investor then picks up the property as a bargain.
I think it is a win-win solution. I am wondering who is using this strategy in Australia.
Paulyp wrote:Hi,with all due respect, I don't understand the mindset of some people, many of us go and get a car loan for $30000, personal loans for plasma t.v's or other things that depreciate in value but when it comes to parting with $5k for the knowledge that a course such as Massland's or any other for that matter can give a person, sorry but this boggles me. If anyone knows of any books out there on property options PLEASE let me know. Options are a specialized area where there aren't many decent books that gives Australians the A-Z in this field. Therefore to excel in this particular field you need to put in the hard yards both financially and mentally, but in the end it will be worth it. Are we expecting pay $5k just sit back, take a holiday and wait for the cash to roll in? With this mindset most of us will be in the rat race the rest of our lives!
Anyway thats my 2c worth.Cheers
Paulyp
hi, Paulyp. I cannot agree more on your saying. from an entrepreneur's point of view. 5k is not gonna make much difference in some one's whole life. but acquiring some advanced techniques by financial education may make a big difference.
There is not much material available in the market for property option. The book I have is the American Author Thomas Lucier's How to Make Money With Real Estate Options.
If you want, I can send you a soft copy.hi, McHenry. I have both "Wrap Kit" from Steven Mcknight and "Wrap Pack" from Rick Otton. I haven't finish both of them. I m now learning Wrap Pack. Pretty much these two package are for doing wrap deals. but by different approach, some idea are even contrary.
e.g. Steven believe people first strategy is better. He suggest finding a buyer and let the buyer to choose the wrap property first, because you won't hang on a vacant property.
Rick otton holds a different opinion. He thinks letting the buyer to choose the property put investors in a position where is harding to get a better selling price. because the buyer knows how much you pay for the property, and he/she will become funny.
For me, I want to keep my option open, to see different approach and choose the one suits me. So I brought both. I am still learning from these two pack.
I hope this will help you. and you are welcome to contact me to have a further discussion.
