Hi,

You ask:

if u currently have a mortgage and wrap it to someone else…do u find it hard to get financing for another property and another seeing as that the banks will think u are exteding too far wont they ? and want u too pay put the loans first b4 getting the second and third ??

There is a problem if you buy it in your own name as you…[Read more]

Rob,

Vic & NSW: immediate
Tas. & Qld: After 12 months
SA: Wraps illegal
WA:?????

Regards,

Steve McKnight

Hi,

Of the 40 or so wraps that we did 3 three years ago, 50% have now terminated as either moving out (and we have resold, re-wraped) or they have cashed us out.

This large atrition rate is primarily due to our poor classification and qualifying techniques over potential clients – something that took time to fix but which is working better…[Read more]

Tara,

My advice is to check the council zoning for the property as a guide to what lenders will use as the basis for classification.

I know that anything zoned rural comes with alarm bells from a financiers point of view.

As a general rule:

Residential: 80% LVR (higher with mortgage ins. or other security)
Commercial: 80% – 70% LVR
Industrial…[Read more]

Hi Dianne,

Firstly, I think that the information provided by the replies you have received all contain good advice.

To be honest, it is difficult for me to comment on your deal beyond very basic indicators. But sometimes these are best because they tend to cut through all the hype and emotion associated with the ‘sell’.

If you haven’t already…[Read more]

Hi Eric,

Thanks for your excellent post and for your helpful comments.

You raise the point about properties in the La Trobe valley and I thought that I share my experience about this area since this is where a number of our investment properties are too.

Dave and I began investing in the La Trobe valley in early 2000 – just before the FHOG came…[Read more]

Hi,

One of the many things outlined in my Wrap Library is the treatment of Land Tax (in Vic.)

Basically, if you know what you are doing you can avoid having to pay it at all. The solution has nothing to do with asset structuring – just about knowing the SRO system and how to use it to your advantage.

Regards,

Steve McKnight

Hi,

I understand that Greg Levett is sourcing a lot of wrap loans through GE under a full disclosure basis… but I welcome both Darren’s and Greg’s confirmation of this.

Regards,

Steve McKnight

Felicity,

I like JM’s simple yet effective ad. Given your target market I recommend you place it in the ‘TO LET’ section. Put a border around it so it stands out a little.

For more specific advice I recommend you consult the ‘Classified Ad Secrets CD’ I produced a while ago and which is part of the wrap library (which I think you have…[Read more]

Hi,

A possible contact to try is Charles Gluck (mortgage broker)on (03) 9852 9188.

Regards,

Steve McKnight

Hi,

I think the biggest distinction with the strategies is that you can qualify for the FHOG with a wrap but not a lease-option.

I regard both strategies as very useful tools that have slightly different application depending on the exit strategy of the investor and the needs of the client.

For example, for clients that do not qualify for the…[Read more]

Felicity,

What did your ad say?

Replicate it here using headlines, bold etc. and I’ll read it and provide some feedback if possible.

Bye

Steve McKnight

Hi,

This may not be the advice you are after at this point, but I feel compelled to say that I wouldn’t[/b[ be investing in property (or anything else) until you first addressed the issue of why you are broke in the first place.

No amount of money will be able to solve a money problem if you alwys spend 101%+ of what you earn.

Investing has…[Read more]

Hi Andrew,

As I pointed out in the Wrap Library, I think that the best way to manage the risk with your client is to complete a very thorough qualification of their ability to repay.

Follow the advice I outline in the ‘Vendor Finance All Wrapped Up Module’ and also on the PATTERN Templates (Tenant Application).

You can help yourself in…[Read more]

Peter,

In your case it may be best to team up with someone looking to make a quick dollar and say to them that if they source a deal and you buy it then you’ll offer $$$$$.

This is known as ‘bird-dogging’.

Feel free to make this kind of offer here on the forum – provided you spell out the exact nature of your offer and your specifications for…[Read more]

Hi,

A lot of research for the data that you require certainly can be completed over the Internet.

If you are in Vic. / NSW, then I encourage you to read the articles posted on 19 Apr. 2002 as these contain a lot of great info. These reports come out 1/4ly.

Most of the information that you require is available through the ABS too. You’ll need…[Read more]

Hi Stuart,

Some time ago I researched the foreclosure market here in Australia to see if I could apply the information contained in some of John Burley’s product, such as his ‘Fortunes In Foreclosures’ and also his book.

What I found is that privacy laws here in Oz are a lot more strict than in the US, which makes some of the ideas somewhat…[Read more]

Hi,

Just be careful not to become confused between investing and lifestyle decisions.

If your goal in financial independence is to own your own home, then owning rather than renting might be appropriate.

In my case, Julie and I chose to rent because we wanted to accelerate our investing success and weren’t planning to live in the CBD in our…[Read more]

Hi Watto,

The software will automatically pick up what posts you have read and alert you to new ones by placing a blue folder as opposed to a buff or yellow coloured one when there are no new posts.

You can also see who made the last post and when.

The idea is that each post is logged or filed in sequential order (oldest to newest) so that…[Read more]

Hi again,

Thanks for your fantastic feedback – especially posters who have written about things that they do not like and would like to see changed.

I share some of your frustrations – particularly the part about the cursor in the ‘Free Newsletter’ box and also posting when not logged in.

I will pass these on to Eugene asap as areas to fix…[Read more]