What database? If it is added to a tenant database, then only those agents with access would know about it. Not every agent subscribes to these databases and not everybody would check, so she probably could rent another place without too much trouble.

Terryw
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or both

Terryw
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Rob, I don’t understand your question!

When you do a lease option, you buy a property and then sell an option to a tenant. There is no need for an agent to call you.

They would make their usual commisison on the sale of the property (ie when you buy it). They may see you advertising a rent to buy situation and contact you, hoping you could be talked into selling through their agency. But other than that I can’t see why they would call at all.

Terryw
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This year (2004), I’ve seen at least two clients purchase cashflow positive property in Sydney without them being LOs or wraps. So they are still out there.

Terryw
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regarding the UCCC, I think, from memory, the UCCC allows for (maybe even requires) lenders to do whatever possible to help the borrowers in tourble out by temporarily reduce the repayment amount, extending the loan term etc. ie they cannot just kick people out of their homes very easily.

(Incidently, this is why many private lenders will only lend to people if they sign a declaration advising the loan is for business purposes).

Terryw
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What a distorted article!

Terryw
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Robert. I think i gave you a copy of a NSW wrap contract about 6 months ago? Maybe it was someone else.

I also noted the following comment from the interview:
“Rick…………I’m aware they are there but I’ve never been to one of Steve’s seminars”

I recall meeting Rick at Steve’s seminar in Sydney in approx 2001 or 2002.

Terryw
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In my opinion LOs are superior to wraps (installment contracts) in many ways including:

– less problems with finance
– less complicated from a tax perspective
– less legally complicated
– easier to vary, eg can have the strike price as a discount to the value at the time of cashout
– tenant may be able to get rental assistance
– etc

The only down side i can see is the FHOG is not available to tenants until they cashout. Infact, this could be a positive, as it could mean they cash you out earlier, giving the backend profit sooner.

Terryw
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I wouldn’t spend too much. Start with reading as much as you can, taking notes, and going to all those free meetings that are on now and then.

Terryw
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That wrapper in Newcastle is Peter Sollner I think.

You are supposed to disclose a wrap as the mortgage contracts require the lender to be notified if anything is done to affect the value of their security. including onselling on an installment contract and selling an option, (major renovations etc).

Terryw
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