Hi Scottie

I can think of 3 options. There probably are more.

1. When I was a mortgage broker we had access to a lender who would supply loans to 105%, 110% and 115% of valuation. You have to be perceived as a very “solid” risk by the lender to get one of these. That usually boils down to a great employment history (among other things). The…[Read more]

Hi Nathan

When the client excises the Option, i.e actually buys the property, they are then eligible for the FHOG, if they qualify.

I hope this helps.

Cheers, Paul

Hi Garry

If you are looking for software to manage your clients’ loans then I’d agree 100% with Scott, i.e. Loan Alert is the best around.

If you are looking for Accounting Software to do the books for your wrap business then I don’t think there is any specific software available. We use MYOB but we found that the finances of a wrapping…[Read more]

Hi Steve

Thanks for the great news!

With the Vendor Finance (Wraps) Association in its current “interesting” state, do you think it will be possible for them to be asked to comment on the draft paper?

I’d hate to see the Association sidelined completely as I think it just may be possible to rebuild it into something very worthwhile in the…[Read more]

Hi Kez

If the wrappee just “up and left”, i.e. did a runner and could no longer be found, then they would be in default and the property would probably revert back to the wrapper.

This is not hard and fast as you may have clauses in your contract which endevour to give defaulting wrappees their accumulated equity back (after expenses). This…[Read more]

Hi John

Yes that’s pretty much the idea. You just set up a 12 month lease with a 12 month option. You then set their lease payment at a level which makes the property cashflow positive for you (including rates, insurance, etc), plus a weekly amount which will be your client’s rent credit. As you say, if they are able to cope with this for 12…[Read more]

Hello JPG632

I believe both Steve and Rick SUGGEST that houses are better than units because people who buy units tend to be more transient. That is, a lot of people buy a unit because they can’t afford a house but they are still aiming for a house in the future. This is obviously not a hard and fast rule but if you are looking at doing long…[Read more]

Hi jcls

I would be very careful here before I just put it down to poor cash flow management skills and head off to try to consolidate their debts into a loan with a lower interest rate.

It is usual for wrappees to be paying more for their installment payments they they usually pay in rent. If they are having problems now, how are they going to…[Read more]

Hi Prodontia

I live in a free standing house so please check the following with a good insurance broker.

The structure of you apartment block, i.e. the building, is usually covered by building insurance which is purchased by the Strata Title Committee (or Manager). Your only input to this is the “say” you have as an apartment owner and…[Read more]

Hi Kate

I’d just like to completely agree with the advice offered by Lucifer_au. Steve’s home page has an add for Steve’s Wrap Kit for $695!! In my view this Kit or Rick’s Wrap Pack are essential reading before getting into this business. And the benefit of both these resources is they lead you step by step into building your business. Good…[Read more]

Hi Lucifer_au

Couldn’t agree with you more. Any suggestions from the NSW “vendor financiers” for a time and a place for the first NSW meeting? My personal preference is sometime in Feb.

Taking a leaf out of Felicity’s book, I propose Tony Cordato as NSW’s first guest speaker. I’ll wait a couple of days before contacting Tony to make sure…[Read more]

Terry – Michael G. handed over to the new President at some point after the last AGM. I’m sure he has her contact details.

John – great to see you back If it has to be March so be it. I’m sure the “Mexican” crew wouldn’t dream of starting without you Also a great idea about having informal meetings, outsde the VFA structure. This makes the…[Read more]

Rob, Pelican (?) & Steve

Thanks for the great feedback. I must admit the sound of all these committees does get me very scared But I guess if we just let the status quo continue, it’s pretty well assured that the Association will fold and we could all end up with a bunch of onerous legislation in our laps that we had no input into.

There is…[Read more]

Hi All

I’d like to move away from personalities and start to through some ideas around re getting the Association going again.

I was at the last AGM and there was almost nobody there. Disappointing but probably understandable considering the size of OZ and difficulty in getting an Australia wide group together in one place.

I have no idea how…[Read more]

Hi Robert

Rick is a very approachable guy. May I suggest that you take all the media reports about him with the “grain of salt” they deserve and give him a ring for a chat.

He is also someone who has helped a lot of people set up their own real estate investing businesses and a lot of us also frequent this forum because we also recognise…[Read more]

What if the property does not sell for a suitable price?

For example…

What if the wrappee spent 10-20k on the property and the market dipped and they would not receive anything according to the market valuation?

Technically the caveat could remain as they spent 10-20k on the property and would be entitled to this amount at the very least if…[Read more]

Hi FireCaesar

Assignment of Contracts: One can usually assign a real estate contract of sale in Australia by adding “and/or nominees” after your name on the contract of sale (or after your entities name). However using this technique in some Australian states can have “stamp duty” (a state based tax) implications and I’d definitely suggest you…[Read more]

Hi Property Plus

You should be able to get a mortgage for 6.5% without any problemms. Then you can “crunch the numbers” and do “what ifs” by gradually moving the interest rate up from there. Possibly by 0.5% increments to, say, 8.5% (or whatever you think rates are likely to creep up to).

Ihope this helps.

Cheers, Paul

Hi DP

A short answer to your question is that you’ll have to go out and find “money partners” for your deposits and closing costs.

However may real suggesion is to invest in your education first. Wrapping, like all investing, has risks involved. The right education will allow you to mitigate these risks down to a manageble level.

My first…[Read more]

Karen & I have done both. For the first 3 we bought the house first and then for the fourth a couple approached us. We checked them out, worked out their price range with them and sent them off looking with strict indtructions to say nothing to the real estate agent, except to ask for the asking price When they found a place that they loved,…[Read more]