Hi Borg

I believe the two favourites in OZ are Steve’s “Wrap Kit” and Rick Otton’s “Wrap Pack”. We have both and highly reccommend each of them. We found that you can actually get going just by following the steps in the Pack or the Kit.

Good luck.

Cheers, Paul

Hi Swift

Let’s take the very average residential property and let’s say you buy it. So it now yours and you want to know what to do with it. There are many techniques you could use at this point but let’s just look at two.

Rent it. This is a gross generalisation but in a lot of places in OZ, if you rent it you will turn the property into a…[Read more]

Hi Swifteagle

A wrap is a stand alone positve cashflow real estate technique. Usually a wrapper will purchase a property and then on sell it using an Instalment Contract (a wrap). This transaction provides a positive cashflow each month and quite often a lump sum cash benefit if and when the wrapper refinances his/her wrappees into a…[Read more]

Hi

We often pay small deposits. Quite often only enough to pay the agent’s commission. We have found a “middle ground” that quite often works for both parties is that we pay our small deposit and the lawyers add a clause to the contract saying that if we don’t settle will will be liable for the full 10% deposit. Keeps the vendor happy and does…[Read more]

Hi

And, of course, another option is to not take any “sides” regarding CF+ or CF- but to see them both as valid investment strategies.

One vendor financing teacher we learned “wrapping” from always told us that we should use the positive cashflow generated from our vendor finance busines to invest in buy and holds with good capital gain…[Read more]

Hi Carlin

As Pyramid says, try the “Investor HQ” tab at the top of the page for the difference between wraps (instalment contracts) and lease/options.

It is illegal to sell residential real estate in SA using a wrap, i.e. an instalment contract. However you are allowed to use lease/options in SA and, as far as I know, quite a few people are.…[Read more]

Hi Zsolt

One sufggestion is to use the equity you have in your property to start a vendor finance real estate business. Vendor financing (usually using either a “Wrap” or a “Lease/Option”) is a great way to start a positive cashflow real estate business. I personally believe that the real wealth in real estate is your equity but by creating a…[Read more]

Hi Pyramid

I am unsure how the ACT handle the FHOG with Instalment Contracts. However there are two wrap savvy lawyers listed in the ACT in the Wrapping Specialists list on the Vendor Finance Association’s website. The url of the Association is:
http://www.financewraps.asn.au

I’m sure these solicitors will be able to help.

Cheers, Paul

Hi Pyramid

In your Disadvantages list you mention; “First home owners don’t benefit from stamp duty exemptions as it is paid for by the Wraper and passed on as a closing cost”

In NSW wrapees receive the stamp duty exemptions and access to the FHOG on exchange of the Instalment Contract (if they are first home buyers).

Would you mind expl…[Read more]

Short answer – ABSOLUTELY NOT!

This short joke gives you an idea of the place. Q. – What did PNG use before kerosene lamps. A. – Electricity

Cheers, Paul

Hi Marty

What’s the value of an installed split a/c? Maybe $1,500 max. How many thousands is it going to cost you to litigate? My guess, many thousands.

My suggestion, put it down to experience and move on having learned a lesson to check that all sale clauses have been satisfied before you settle on your next property, i.e. you had the…[Read more]

G’day Steve

Thanks for the forums. Much appreciated. That was the good bit

I don’t like to new forum layout. As has been said before, the font is too small and the right hand panel makes the forum space too narrow. Also I believe the different colurs for read and unread threads are too indistinct. For me, please bring back the old forum…[Read more]

Hi Pyramid

Instalment Contracts (wraps) in NSW are great because they have the wonderful general effect of making land tax disappear! Here’s why:
1. In NSW a property is deemed to have changed ownership, for land tax and stamp duty purposes, on exchange of contracts.
2. Once you have sold the property via an Instalment Contract (wrap), you have…[Read more]

Hi Furnz

My wife and I highly recommend Paul Siderovski: paul@sidcor.com.au

Sidcor Chartered Accountants, PO Box 831, NEWCASTLE NSW 2300 Ph:02 4926 5299

Ours business is nothing but real estate (vendor finance and buy and holds) and Paul does a great job.

Cheers, Paul

Hi Mark

May I suggest that you look closely at some of the signatures of the people who have posted on this thread. Your answer may very well lie in a call or two to these numbers

Cheers, Paul

Hi mccoz

I got the following information from the Vendor Finance (Wraps) Association’s website:
“Mr David Cook via email davidcook@chms.com.au or Commanding Heights Mortgage Solutions Pty Ltd direct telephone line 02 4926 2277.”

If you are doing wraps, I’d recomend you join the Association. It’s website is…[Read more]

Hi ganakars

If you are willing to move away from the buy & hold/tenant way of thinking you will find positive cashflow real estate transactions are definitely still available out there in the market place. And many of these transactions can be done for little or no money down (like the one I mentioned above).

Have a look…[Read more]

Hi beerboy

Why not give the vendor the 20 grand deposit and ask him or her to give you a first mortgage on the remaining 30 grand. If they don’t need the 30 grand immediately they might like the idead of getting 7% or so on their money. Good luck.

Cheers, Paul

Hi ganakars

My best advice is to finish Steve first book and quickly read his second. That will definitely help to clear the fog slightly. I’d also suggest you only consider that the begining of your education. Keep reading whatever you can get your hands on.

In relation to the seminars you’ve been to, I’d guess you may have only attened the…[Read more]

Hi Misty

Solicitor:
Lewis O’Brien
03 8801 0111
0407 521 112

Cheers, Paul