Hi Looti

First of all, could you tell us where your house is located (town/state)?

If the area suits us we could look at giving you the current market price, if you would be prepared to lend us 20% of the agreed purchase price.

By lending us 20% of the purchase price, I mean our solicitors draw up a second mortgage contract between us, in which…[Read more]

Hi Jono

If you’re in NSW, talk to the godfather of wrap and lease/option paperwork, Tony Cordato at
http://www.businesslawyer.com.au

If you’re in another state, just let the forum know and I’m sure you’ll be given the name of a vendor finance specialist lawyer in your state.

Good luck.

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn…[Read more]

Hi

It sounds to me like you need a lease/option for 2 years which you exercise and rollover into an Instalment Sales Contract. So the paperwork is relatively simple, i.e. a standard residential lease for 2 years, a two year option on the property and the contract you attached to this lease/option will be an Instalment Sales Contract.

If you are…[Read more]

Hi Nathan

I agree with Richard. I wouldn’t be wrapping a property to an undischarged bankrupt.

“Illegal” is a strong word but a solicitor has told me that it’s illegal to supply credit to an undischarged bankrupt and on selling a property using an Instalment Sales Contract (wrap) is regarded as supplying credit.

If you really insist on selling…[Read more]

Hi Daniel

There have been many of them. This one is from the early days.

Getting 80% LVR loans because I didn’t want to pay the Lenders Mortgage Insurance premium. With 90% or higher LVR loans we could have bought double the number of properties to wrap with the money we had.

Good luck in the future.

Cheers, Paul

Paul & Karen…[Read more]

Hi Andrea

If this property could be turned around so that it:
1. Produced positive cashflow for the owner
2. Could be sold for $290,000
do you think he would be interested?

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn your negatively geared property into positive cashflow.
Phone: (02) 4984 9540

Talk to us about Wrap Training Joint…[Read more]

Hi impatient

Instead of using the words “investor” or “investment” possibly consider the terms Joint Venture and JV Partners.

Sorry I can’t help you with a development proposal. Good luck.

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn your negatively geared property into positive cashflow.
Phone: (02) 4984 9540

Talk to us about…[Read more]

Hi YC

As the market has “motivated sellers”, it also has “motivated buyers”. And yes these “motivated buyers” tend to look past the major road location, if it’s going to get them what they want, i.e. their own home.

As the opportunity of this property is now out in the open, lets see if any wrappers contact you. If they do and you sell the…[Read more]

Hi YC

Don’t tell any wrappers about it or they’ll grab it in a flash Why? Houses on main roads usually get discounted pretty heavily because of their location but when you sell them using vendor finance (wrap) you can usually sell them for full price.

Good luck.

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn your negatively…[Read more]

Hi Mat

I’d definitely agree with Daniel. If you are going to talk with an accountant about this, make sure the accountant has a few of his/her own investment properies.

I’d also recommend that you have a read of: https://www.propertyinvesting.com/strategies/buyandhold.html

And for $25, I’d suggest you pick up a small, easy to read book called…[Read more]

Hi Carlin

May I suggest you go to their website at
http://www.rpdata.net.au/
They have a lot of information there on their services.

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn your negatively geared property into positive cashflow.
Phone: (02) 4984 9540

Talk to us about Wrap Training Joint Ventures.

Hi Chris

A hypothetical. You’ve built up a great protfolio and you’re, rightfully, happy with the asset base you’ve been able to build for your family.

You’re driving along one day, get dazzled, run off the road and into a shop. Nobody is hurt but the ensuing fire destroys millions of dollars worth of property

You had been conscious of not…[Read more]

Hi Glenn

I’m sure some of the excellent mortgage brokers who are members of this forum will be able to set up some form of “line of credit/redraw” loan for you. With this type of facility in place, you will have access to funds for future investments.

While this facility is being put in place I’d suggest you get your real estate education…[Read more]

Hi Carlin

I’d suggest you read up on the other side of the argument. I agree with Mark, Steve’s Wealth Guardian is great. Another great small, easy read on this subject is “How to Legally Reduce Your Tax”. $25 at your local bookstore. I really enjoyed it.

Good luck.

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn your negatively…[Read more]

Hi Chris

Sure I guess the number of negatively geared properties vaies from time to time throughout the property cycle but I’d hate to see the results if the government stopped negative gearing benefits for residential property. The bill for “public housing” would explode.

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn your…[Read more]

Hi D

We have found RP Data to be our most invaluable resource.

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn your negatively geared property into positive cashflow.
Phone: (02) 4984 9540

Talk to us about Wrap Training Joint Ventures.

Hi Jeremy

There are two very good educational resources that I’d recommend if you wish to start a real estate vendor finance business (wrapping business). They are Steve’s Wrap Kit (I’m not sure if it’s in print right now) and Rick Otton’s Wrap Pack. We did our first wrap by simply following the instructions in one of these Pack’s (we now have…[Read more]

Hi Steve

Terry is absolutely correct in directing you to a good accountant for this type of advice. However, before you get there, I’d suggest you race out and get a book called, “How to Legally Reduce Your Tax”. One of the authors is Ed Chan. It’s got to be the best educational tool around, for the price, on structuring your property investment…[Read more]

Hi John

Now that you’ve got some great advice on the finance side of things, I’d suggest you race out and get a book called, “How to Legally Reduce Your Tax”. One of the authors is Ed Chan. It’s got to be the best educational tool around, for the price, on structuring your business. It’s only $25 and it’s a very easy read. Good luck.

Cheers,…[Read more]

Great. Thanks Richard.

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn your negatively geared property into a positive cashflow investment.
Phone: (02) 4984 9540