Hi Brad,Your basically got it. You get a house that needs a reno. This does not generally include structure work as Mums and Dads cant do this work themselves. The one that was done on Hot Property was bought at a cost of 285. It was estimated the work would cost 35k or so. The buyers were offered the house at 340 and would be given a "sweat…[Read more]
I found this article very good reading. It points out very clearly (to me in particular) that you must do your due diligence on your potential client. You must ensure you check that they are able to meet thier repayments. You cannot just put anybody into a vendor finance contract and think “she’ll be right”. You have an obligation to do the right…[Read more]
the best place to start would be in the local paper classifieds for the areas you want live. Most vendor finance homes are advertised this way.
Furher to the comment by “Nat R”, you should not read and reply to posts that require the skills and brains required to make an educated and informed comment ouside your area of comfort. Not all people…[Read more]
Have you considered the possibility of buying on a lease option?This way you don’t need to rely on the banks…just to get started!The second possibility is to do a joint venture with someone who does have a job and a deposit but not the time or the knowledge to do their first investment.You share the profits giving you the chance to be in the…[Read more]
No you are not considered an approved agent. You need to get them to sign the FHOG docs, provide photo copies of Photograhic ID eg licence, a stat dec signed by yourself saying they have taken possession of the property and a bill with their name and new address on it. Put it all in an envelope and post it to the State Revenue Office. Takes about…[Read more]
The security for the loan must be stand alone. If you want to use capital gains from another property you own you will need to extend that loan, draw the money in cash and use it for the property you intend to wrap.
In some cases brokers commission is based on the size of the loan they write. Cross collateralising gives them a bigger loan as they can include all properties they can. Happened to us. Westpac actually redid all the loans back to stand alones 2 months later. The manager at the bank told me about the commission set up. It comes…[Read more]
The amount you add to the price of the house is dependant on the price you paid and the exit strategy you have for your buyers. If you plan to have them refinance sooner rather than later then the sales price needs to be lower (very close to market value). As far as intrest rate goes you can charge upto a 2% or more if the funds you have for your…[Read more]
Just to work out the payment many banks have calculators for this on thier websites. If you plan to do a few wraps then Loan Alert is a program designed to track your purchasers loan. Check out the demo version before you decide to buy at http://www.loanalert.com.au . We have found it quite useful.
Lease option it to some yuppy with high income and low net worth. Charge a premium for the unit on price but get excellent cashflow along the way. Make the payment high enough that they can refinance within a few years . Otherwise finance them the 10% deposit at a reasonable interest rate on an unregistered second mortgage(and caveat) for say 3-5…[Read more]
You can off set the loss against any future capital gains. The loss carries over. Why dont you consider selling it on a wrap or lease option instead. You could then sell it for what it owes you and have cashflow till the tennantpurchaser refinances. Beats a loss.
I have attended a few seminars and found you learn heaps from being ther. BUT unless your going to put the information to work you are wasting your money. I went Ricks boot camp last year after completing 5 wraps in the 10 months prior. I did 7 more in the follwing 6 months due the information I learned at the wrap camp. I did it better and more…[Read more]
I believe Robert Allen has been investing in real estate in America for well over 20 years. He has also been doing seminars in America for a lot of years. If he wants to sell his information then the market will quickly decide if he is worth it or not. I go to seminars regularlly, some good, some shockers. They all cost money but without attending…[Read more]
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