Hi PeterIt's fashionable these days to put down Negative Gearing as a tool for building your property portfolio.  However, in the Australian market, it seems to be an underlying truth that initial negative gearing translates into substantial capital gain over the long term.By using only negative gearing, the number of properties you can add to…[Read more]

Hi RaslaffanWith a handle like that, I'd guess you're in Qatar (spent 8 years there myself). I'd use the equity you have in your IP to purchase a couple of CF+ properties to help speed up the purchase of the IP.  I'd definitely wouldn't sell it at this point because as a non resident for tax purposes, a sale now would attract way too much tax (as…[Read more]

Hi SUN553We've owned an IP in Toormina (near Coffs Harbour) for 3 years, that's in an area that has quite a few Housing Commission places.  I believe it was all Housing Commission once but, over the years the've gradually been sold off to private owners.  This transition to private owners definitely seems to have a beneficial effect.  We sold it …[Read more]

Hi dabaYep, that legislation is now in place.  I believe the legislation was deigned to catch large commercial transactions, where a company lease a premises for a long time and also have an option on the premises.  Unfortunately this legislation has also swept residential property into it's net, as the legislation doesn't differentiate betw…[Read more]

Great minds think alike   We've been working in Greta (just down the road).  Co-incidentially the example on our web site (on the joint Venture page) is the last property we did and it's in Greta.Cheer,  Paul

Hi SallyRichard is spot on, i.e. it is much safer for you, as the owner, to make sure all these bills are paid.  An alternative we use is to add a fixed amount to the new owner's weekly payment, eg. $45 to $50.We then pay all the bills as they come in and do a "wash up" towards the end of the year to see if we got the dollar figure correct.  If o…[Read more]

Hi SteelarWe usually secure a property with a call option and a lease, both with the same term.  This is step one and it's important not to go past this step unless you are assurred that all this paperwork is correct and you secure your interest in the property correctly (based on your States procedures).Once this paperwork is in place, you have…[Read more]

Hi dabaI think the phrase "motivated seller" is the key to how close you'll come to securing the property for your price.  Obviously the greater the motivation the better the deal you'll be able to negotiate.  The more you get to kow the vendor's real situation, the better your negotiating position.As Richard says, if the vendor is half smart and…[Read more]

Hi SeanIf you asked my opinion, I'd warn you off wrapping your property to an existing tenant.  My experience is that they hardly ever move from a tenant's mentality, to a buyer's mentality.However, if that's your decision,PM me and I can put you in touch with a reputable Vendor Financier in NZ who will be able to help you out.Cheers,  Pa…

Hi SteelarIs your interest in call options focused on what I might cheekily call, the Mark Rolton model, i.e. securing a property with a call option and then applying for a D.A. on that property, or, is it more along the lines of securing residential property with a call option?I'm not into the first "model" but have been involved with the second…[Read more]

Hi SurrealistBack in 1998 I looked into Vendor Finance as it relates to residential real estate.  A bunch of U.S. promoters were in town that year and they were talking about wraps and lease options.  In my "wisdom" I worked out that this couldn't be done in Australia!  Sheer brilliance It was 2002 before Karen and I looked into it again.  We sta…[Read more]

Hi MudassarMy wife and I started our residential real estate business in 2003 and yes we have completed many wraps and lease options.  Happily for us, I was able to give up my job early in 2009 and we are now both enjoying working in our Vendor Finance business full time.By the way, we learned a lot of what we know about Vendor Finance from the s…[Read more]

Interestingly, all lawyers who offer a no win/no fee service, don't offer this service to anyone that walks in off the street, with any old case.  The case is looked at and weighed up very closely before no win/no fee is offered.Anecdotal information tells us that 80% of people who go to any form of seminar, to learn something new, will do ab…[Read more]

Hi PeterIt's not Steve's Wrap Kit but there is a Wrap Pack from Rick Otton on eBay.  Couldn't find a Wrap Kit.  It's item number 120421792826 on eBay.  Good luck.Cheers,  Paul

Hi StevenExactly as Richard says for Instalments Sales Contracts that are often called Vendor Financing.  Just be aware that if your girlfriend were to buy the property via a Rent To Own, i.e. a Lease with an Option, she would not qualify for the FHOG until such time as she exercises the Option and buys the property.Rent To Owns also come under t…[Read more]

HiA quick story to show just how terrible these wicked Vendor Financiers are   An investor went along to the great "get rich via real estate" seminars and negatively geared himself into a cashflow crisis.  The result was that, when he contacted us, he was just days away from foreclosure and probably bankruptcy soon thereafter.We paid the loan a…[Read more]

Hi ChristianWe use both Lease/Options (Rent To Own) and Wraps (Installment Sales Contracts) in the current market.  We find that it's the particulars of each property transaction that steer us towards one of the many vendor finance strategies.  However starting off with just one (or two) strategies is a good way to get going.  To ensure that you…[Read more]

Hi BrizzaWith the exchange of contracts that has taken place during the wrap process, it is likely that the court will decide that you have disposed of the property and the only part of the property that you retain, is the future proceeds from the Instalment Sales Contract (wrap).  Therefore I believe the Family Law Court would divide the future…[Read more]

Hi KenzalIt's not a web site but Australian Property Investor magazine has the information you need (in each issue).Cheers,  Paul

Hi AllWe, that is my wife and I, have had great results from what would "affectionally" be called one of the "gurus" in the marketplace.  The education hasn't been cheap, if you look at it from the point of view of where we were when we started but it looks very cheap today, ie. from the point of view of owning a successful Vendor Finance…[Read more]