All Topics / The Treasure Chest / assumable mortgages

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  • Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Hi:everyone
    my question is are you aloud to assume somebody’s mortgage with just a signature in australia.It is a great way to solve a persons financial problem and get a property in return . because solving problems is what we do right.

    canadian dave

    Profile photo of ChrisBedfordChrisBedford
    Participant
    @chrisbedford
    Join Date: 2002
    Post Count: 23

    Hi CD,

    I don’t think you can assume a mortgage in Oz. A shame really, it sounds like there are some creative solutions available by assuming loans.

    Cheers

    Chris B
    http://www.tradingsecrets.com.au

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Hi:CHRIS
    That is too bad because it is a great way to get into cash flow positive properties.I approached a seller last year he was selling his house for 154,900 ,it has a three bedroom suite upstairs and a two bedroom suite downstairs. Both have separate entrances and separate services. He owed 123,500 on his mortgage, I offered him 20,000 cash and I would assume his mortgage. He accepted.I found a joint venture partner who put up 10,500 and I also put up 10,500. The extra 1000 is to cover closing costs,which are much cheaper with an assumable mortgage.The payment is 900.00 a month, insurance is 41.70 a month and land taxes are 119.58 a month,allow 5% for maintenance and vacancy 135.00 a month the total expenses are 1196.28 .I rent the top suite for 725.00 and the bottom for 625.00 total 1350.00 a month rental income. The positive cash flow is 153.72 a month.If I was to default on the mortgage in the first year the seller would be responsible for the mortgage,which would mean reassuming the mortgage back in his name and reselling hoping to make another cool 20,000 with no risk.

    canadian dave

    Edited by – [email protected] on 12/06/2002 11:48:52 AM

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Canadian Dave…

    I was surprised when I first learned about assumable mortgages in Alberta as it is a new possibility for Australian investors.

    FYI, the law here is that the mortgage here needs to be paid out (ie. clear title given) at the time of settlement (ie. when title passes).

    In fact, the whole tertiary loan market (such as 2nds etc.) is quite untapped over here.

    That’s why wraps are so exciting in Alberta. When you take the possibility of assumable mortgages, add on a multi-family property and then wrap then, it gives you a fantastic opportunity to buy and sell property without ever having to qualify for anything.

    If I were you I’d be carving this niche for myself and make some serious money while creating win-win outcomes.

    Let me know if you have any questions and I’ll try to help you through the process from what I know of the Canadian side of things.

    Bye,

    Steve McKnight

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    HI:STEVE
    I would like to take this time to thank you for your wonderful product Wrap Secrets Revealed.Just last night at my Rein(real estate investment network)meeting,I was telling Don Campbell about the forums,of course Don being Don he already new about it,always one step ahead.Thanks for the great idea, you can be sure I will try to apply it in the near future and add my feed back to the forums.

    Canadian Dave

    P.S Don was telling me what a wonderful time he had in Australia,we had a good laugh over the veggie-mite story. My joint venture partners wife is Australian so I’ve had the pleasure of trying the product first hand.

    Edited by – [email protected] on 13/06/2002 10:38:27 AM

    Profile photo of ChrisBedfordChrisBedford
    Participant
    @chrisbedford
    Join Date: 2002
    Post Count: 23

    Hi Guys,

    In countries such as Canada, is the need for title insurance due to the ‘assumability’ of loans? Is there a similar insurance applicable in Aus or not necessary due to different laws?

    Chris B
    http://www.tradingsecrets.com.au

    Profile photo of montomonto
    Member
    @monto
    Join Date: 2002
    Post Count: 8

    Can someone please tell me where I can find out more about this wonderful prodcut Wrap Secrest Revealed? Thanks in advance.

    HI:STEVE
    I would like to take this time to thank you for your wonderful product Wrap Secrets Revealed.Just last night at my Rein(real estate investment network)meeting,I was telling Don Campbell about the forums,of course Don being Don he already new about it,always one step ahead.Thanks for the great idea, you can be sure I will try to apply it in the near future and add my feed back to the forums.

    Canadian Dave

    P.S Don was telling me what a wonderful time he had in Australia,we had a good laugh over the veggie-mite story. My joint venture partners wife is Australian so I’ve had the pleasure of trying the product first hand.

    Edited by – [email protected] on 13/06/2002 10:38:27 AM

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi,

    Back in May 1999 David (my business partner) and I purchased my first property – a little 3 Br/1 Ba home in the back blocks of Ballarat for $44,000.

    At the time we purchased it the plan was to rent it out and then make some positive cashflow. Indeed, immediately after we purchased it we let it back to the owners (short-term) for $125 per week.

    Around this time I left with my wife to complete a marketing seminar in Vancouver. At the event I met up with a Canadian property investor in B.C. who outlined to me what he did, which was an abriged version of vendor finance – something that had been available in Australia since the early 1900’s.

    When I returned I looked to sell our first property for $65,000 under a ‘terms contract’, which meant that instead of selling it and receiving a lump sum payout – I received weekly installments for 25 years.

    In essence I did a lay-by on the property by selling the property and providing the finance too (that’s what a wrap is).

    Over the next 18 months David and I went on to purchase over 40 more properties and sell them in this fashion, thus creating a postive cashflow income in excess of $100,000 per annum.

    I began sharing how I had done this on some Internet discussion forums and before long I was asked if I could run a seminar that outlined exactly how the process worked, including the accounting and legal aspects.

    I agreed to do so and ran a full one day workshop.

    This was the precusor to the ‘Wrap Secrets Revealed Library’ – an audio and written program that details everything I know about wraps.

    This program has been a great success to many investors around the country you have leveraged off my advice and made money.

    Hearing about my success and my focus on a win-win outcome, A Current Affair ran a story outlining how I had a positive impact on people’s lives and how it is possible to help people and make money at the same time.

    When a close friend, Don Campbell from Canada (who runs the magnificent Alberta REIN program) saw the results he asked me to
    speak in his home country about wraps and how they have worked for me.

    At this event I went through my Laws of Property Investing Success (which I am currently outlining in the Insider newsletter series) as well as a wrap intro before detailing how the Wrap Library has been able to build wealth for many people back home.

    Canadian Dave purchased the product as a result of this seminar and I am very pleased that he has found it to be worthwhile.

    For more information about wraps and the product, please go to:

    https://www.propertyinvesting.com/files/content.asp?cid=wrapintro

    Bye,

    Steve McKnight

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636

    Monto,
    The great product is found on this site.

    Here is the link

    https://www.propertyinvesting.com/files/content.asp?cid=wrapintro

    I can vouch that it will teach you a whole lot about wrapping.

    Enjoy,
    AD [:0)]

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