Hi joshknack

Two friends and fellow wrappers have been caught out buy using the “find the buyer first” technique. Why? Well, they bought the property and the wrapees walked.

We still sometimes use the “find the buyer fist” technique but we ensure the wrapees have paid us a substantial amount of non-refundable money before we purchase the…[Read more]

Hi Josh

1. The best we’ve done is settle on the property one day and have the wrapees move inthe next. The worst so far has been six weeks between settlement and the wrapees moving in. As a wild guess, after you’ve selected the property (or if you use Steve’s technique, after your wrapees select the property), it might take about 15-20 hours…[Read more]

Hi Josh

Having been a mortgage broker in the past, Karen and I have always understood the importance of having an excellent due dilligence paper trail to try to protect us from any unconscionable lening claims.

An easy way to put together a standard type of paper trail is to collect a bunch of loan application forms from different lending…[Read more]

Thanks Lance and Richard. I’ve sent off an email to Lisa to see if we can help.

Cheers, Paul

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

Hi joshknack

My first suggestion would be to get yourself as well educated as you can about Wrapping before you dive in. I’d recommend either Steve’s Wrap Kit or Rick Otton’s Wrap Pack.

We started two years ago with Rick’s Wrap Pack and are now working on vendor finance transaction number eleven. Since then we’ve also got Steve’s Wrap Kit.…[Read more]

Hi iamsooty

I’d also suggest that you grab a book called; “How to Legally reduce your tax” by Tony Melvin & Ed Chan. It’s an easy read and a great educational tool.

And the trip to Brisbane. I’d stay away from it – big time.

Good luck.

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn your negatively geared property into a positive…[Read more]

Hi shazzajaksic

The following is based on your original post in which you say you currently only owe $100,000 on the IP.

Just because you raise the potential borrowing on your IP to $240,000 it doesn’t mean you have to use it all. A good broker or your existing lender will set you up with a facility from which you can draw as opportunities…[Read more]

Hi Jenny

With the finance people here saying that your nephew may be lumbered with a pretty high interest rate for a 100% loan, it might be an idea for him to consider buying his new home via a vendor (seller) financier, i.e. somebody who will sell him the home and provide the loan, all in one package.

Tell him to have a look in the “Real…[Read more]

Hi shazzajaksic

I would probably hold onto the property and have it revalued by your lender. Lets say your lender revalues it at $300,000. You then increase your loan on the property to $240,000 (80% LVR so there should be no Lenders Mortgage Insurance cost). This then gives you $140,000 to reinvest, possibly on a cashflow positive…[Read more]

Hi Swifteagle

I suggest you grab the following book: “How to Legally Reduce Your Tax” by Tony Melvin & Ed Chan.

It’s about $25 and it’s an excellent educational tool on structures.

good luck.

Cheers, Paul

Paul & Karen Dobson

negative2positive

Turn your negatively geared property into a positive cashflow investment.
Phone: (02) 4984 9540

Hi Dave

If you haven’t already, have a look at:
https://www.propertyinvesting.com/forum/topic/22508.html

Cheers, Paul

Paul & Karen Dobson

negative2positive

Turn your negatively geared property into a positive cashflow investment.
Phone: (02) 4984 9540

Hi

We use Loan Alert for our Wraps and 2nd Mortgages. We find it’s Uniform Consumer Credit Code features to be invaluable.

The software manufacturers recently came out with a free update so I’m sure it’s not an abandoned program.

Cheers, Paul

Paul & Karen Dobson

negative2positive

Turn your negatively geared property into a positive…[Read more]

Hi Sadie

It may not be necessary to sell your IP at a loss. It could be possible to sell it with vendor finance which may allow you to sell at “your” price and generate positive cashflow while the purchasers (wrapees) use your vendor finance.

Here are some details of two couples in a similar situation that decided to use vendor financing to sell…[Read more]

Hi Ellis

As you’ll be supplying credit to your wrapees you have to abide by the Uniform Consumer Credit Code. You’ll see that Tony’s Instalment Contract complies with all the Code’s requirements.

The UCCC also reuires that you supply a loan statement to your wrapees at a minimum of every six months.

Cheers, Paul

Hi Ellis

Your loan on a wrap property does not have to be P&I in NSW. However with most Interest Only loans it is possible to calculate what your P&I payments would be and make those payments every month. This way the differential between your wrapee’s loan and your loan will remain constant. Alternatively, if you plan to refinance your…[Read more]

Hi tk

Have a look at
http://www.somersoft.com/forums/showthread.php?t=24342&page=2

Cheers, Paul

Hi Milly

One possible avenue to look at is to set up a trust (probably with a corporate trustee) and have the trust buy the new property.

Your brother or you or whoever you wish will then control the trust and the asset should be protected from any claim from the Family Law court.

Of course, check with your solicitor about this.

Cheers, Paul

Hi Kerry

If you haven’t read it yet, I’d suggest you read through the following:
https://www.propertyinvesting.com/strategies

This will give you an overview of a number of cashflow strategies. Then, once you find a strategy that suits your circunstances, educate yourself further on that strategy and take some positive action.

Cheers, Paul

Hi James

Try the Vendor Finance (Wraps) Association of Australia’s web site. You can find it at:
http://www.financewraps.asn.au

I hope that helps.

Cheers, Paul

Hi McHenry

As you say, if you undertake a “flip” in this situation, you’ll have to pay stamp duty.

We use a carefully worded option to get the result you’re looking for. It works for us in NSW, i.e. we option for one price, we advertise and then on sell at a higher price. It took us awhile to get the option wording correct and to get all the…[Read more]