Here is an idea…. I do this alot. Why not instead of taking a mortgage…. take control of someone elses property (VIA Lease Option) and look after their payments….. here are the advantages:
1. No loan application fees
2. No Stamps
3. No duty
4. No capital gains tax if you sell it
5. less risk if you get caught in the wrong market… you can…[Read more]

I sell all my houses privately – and wrap them to the best families. – I love chatting to the bargain hunters that are trying to find my heartbreaking story only to find that they best keep looking for the deal of the century. I also like it when the agents call up spotting for a listing…. and when I start questioning them on what there thoughts…[Read more]

Hey there,
Depends on what you are trying to achieve….

What I normally do is set up a separate JV agreement for each transaction then you can negotiate all your terms and clearly define your role in each transaction. as you get better at what ever it is you do… (funding supply, negotiator, buyer and seller etc) you can clearly define your…[Read more]

you should be able to check out he council financials and this will tell you where the budget is getting spent. things I look for is a stedy increase in property zoning approvals and building plans for new houses approved. Find out what makes the place tick… like call information centre and tell them you are thinking of moving up there and ask…[Read more]

I use this simple solution to put all parties at ease…… I show proof of the omrtgage and supply the direct account number so that hte payments are made directly into the account with the mortgage on it …. usually I just add a sub clause to my special notes section of the paperwork….. this way the wrappee knows that the only way the bank…[Read more]

I am very handy and can do most things from plumbing to building sub walls and installations of kitchens…. I honestly believe that If I factored into the equation of my time into each deal…. then I have only created a job for myself…. Now if I am purchasing a run down “charming” Property…… I just wrap it to a handy man nad let them do…[Read more]

Depreciation is usually used if you are technically renting the propperty out… or you have Lease Optioned it to a party.

as a Wrap is not renting and is actually a contracual agreement to purchase on installments (thus a sales contract has been drawn and stamps if applicable have been paid…) no Depreciation applys.

How many properties do you have Robert?[biggrin]

Originally posted by terryw:
The bank valuation should make sure you are no overpaying. I personally am not too worried about yield if there is potential for capital growth. Especially when getting vendor financing. Sounds like a good deal.

Terryw
Discover Home Loans
Mortgage Broker
Click below to email me

This all depends on whether you would…[Read more]

I agree with the Mortgage man….. It is all about accelerated learning… if you can save yourself 10 years oin time by chatting to someone that has 10 years experience and can get most of the knowledge (theretical) in say 6 months…. does this put you in a better position to get real (physical and emotional) experience? – food for thought…[Read more]

Hi there,
It really depends on how you have structured your papaerwork! I have wrappees that are paying interest only and know that they are waiting for the capital growth to create the equity they need to refinance. Of course I encourage them to make extra payments (with no penalties) so that they can refinance sooner. – there is flotilla of…[Read more]

Sure ….. just make sure the so called 20% the vender is letting you utilise is not just adding onto the property price and overinflating it so that you get blinded by the fact that you are not putting any funds into the deal… it all has to add up or you could get Bit! ;o0 if you know what I mean…. nothing worse than getting stuck with a…[Read more]

I did and went without a problem cost me $100.00 for the kit and dispersments costs for all searches pests and buildings etc …etc. – Its all Good!

Suggestions are right on target so far. Avoid cross collaralisation and most of all try to place loans with different lenders thus that cannot call all loans as part of a discharge clause for any future loan applications….. you know the one ” all accounts including cheque, credit and other loans must be paid in full to discharge this…[Read more]

Yip … absolute clarity in a JV agreement is a must and must over all the what ifs. also make sure a declaration is signed showing all paperwork has been explained by an independant solicitor so that there are no coersion ground later if it worst case scenario went to litigation.
cover your Butt…. and no-one gets it blown off when the bullets…[Read more]

Hi There…. I have secured property for a packet of chewing gum … that is all I had of value (rummaging around in my clovebox of the car) after being embarrassed about not having a one dollar coin in my wallet. …. but hey if they say it take money to secure property… then who am I to pipe up ;o)
Cheers
Kiwi

a possible suggestion is to ask what price adjust will the vendor make to accomodate the 20 day settlement?…… if no dice then give them 60 days settlement and go back to the $300….. wait for the comeback and make sure you say to the agent that $300K is all you have in the kitty and cannot get any more than that. and that you relly want the…[Read more]

you can also think about getting hte seller to cover the closing costs on condition that you increase the purchase price…… as long as the whole thing still values up (ligitimately of course)…… should be a sizzler. – due diligence and check comps on comparable props to make sure the 20% vendors funds are not just profit sharing. :o)

only unseeded investers would take the deal based on the income generated without doing due diligence on comparable rental returns and then asking the questions of justificatoin to weed out the sour part of the transaction….. a bit like some of there ebayers…. do not check the prices and than go stir crazy once they start bidding and over pay…[Read more]

Ed,
Where did you wish to invest?
Cheers [baaa]