Hiya Guys!
My name is Craig and i head a group of three people who are all 21 and Uni students looking to get ahead and we reckon wrappings the best way to go.
First of all i was wondering if anyone would be able to lend some time and their email address so i could email them some questions. We are very new at this and although we have been researching things for a year, we aren’t brimming with confidence just yet!
We reside in the Doncaster area of melbourne and when i reads Wei’s comments in the post about the other persons first deal in Queensland (good luck with that by the way, you give hope to new peoples!), and i have to say my heart skipped a beat or two. Definately we won’t worl around doncaster for a while!
Second, with respect to Wei commenting on the guy who bought a property for 9K and sold it for 25K. I was wondering…isn’t that the point? If the guy managed to buy the house at 9K yet the market dicatetd it should be sold for 25K then isn’t that a good investment? Or have i missed the point? To me it seems like buying 50 cent shared that in the space of a year go up to $11.00. The market dicatetd what the price should be, you just got lucky! Or am i wrong in my thinking?
Finally…HIYA EVERYONE! My name is Craig and with luck i’ll be around a fair bit. I cant wait to learn from you all and hopefully get to a position where i too can help you guys!
Can’t wait to hear from you all
Craig
Hi Craig- no they bought for $9k sold for $35k, not $25k. It doesn’t matter if it’s legal or morally right- all that matters is how the public looks at the whole issue. This guy who called me sounded pretty upset. Maybe it would have been fine if he did not find out the price that they bought at.
I don’t know whether the market where he bought in has houses going for $9k or $35k everyday, but at the end of the day, it doesn’t matter. That’s why I said legal & moral issues aside- bad press is bad press, no matter how u look at it. But from the sound of things, this group operating in the area sounds a bit shonky.
Cheers Wei
Oh yeah, they definately sound shonky…no doubts about that! Was just interested in what angle you were taking is all. Your right bad press is bad press, particuarly since i live in doncaster :o(
Craig
Hi Wei & Craig
I remember seeing a story on a current affais show about them.
From what I remember, the reason people were peeved with them was that
(1) they didn’t allow the person to see the house before purchasing it (sign the contract to buy and then I’ll tell you were it is) and (2) the guy was making a profit.Now I’m a pretty simple guy but I have not heard of a person who buys their home without looking at it first or at least talking to someone else before jumping in. So, if a person buys a house under these circumstances, who is the fool? I think they both are.
The fact he makes a profit is in my opinion just an excuse or justification for the first reason.
So what did I take out of the story?
1. Never be afraid to make a profit and never be ashamed of it. If a person can buy a house for $9k and sell for $35k good on them.
Remember, when you are selling a house under a wrap you are solving a problem for them. That is what you are getting paid for. You determine how much that solution is worth.
2. That our system for doing wraps creates win-win outcomes and that by telling people what we do gives us better credability in the purchasers eyes. They get to choose their own house and they ALWAYS know what we paid for it.
3. That wraps are a more and more common way of purchasing real estate.
Hope this helps
Dave
Hi all,
My mother rang me up whilst I was putting the kids to sleep and she said that she’d seen something on ACA about the “thing I’m doing with houses” (I think she means wraps/vendor finance) and warned me that something was wrong… Could someone enlighten me as to what’s going on? Where can I get info about this as on the ACA site I can’t see any information. Perhaps this is why some people are not getting such wonderful responses to their ads..just a uneducated guess though…
Sleepless in Melbourne
Soosh [|)]
I’m not going to name the company involved, but it was on ACA 4 months ago and it was involving houses in the Wimmera area. As Grizzly Bear says, if people are stupid enough to buy a house in a town full of cows in the middle of nowhere, sight unseen, they deseve everything they get. But offcourse ACA like to stick up for the silly battlers of this world and the company involved were made to look like rip off merchants. If they can buy houses dirt cheap, whats wrong with this. If I buy a house 50% under market price, Im certainly not going to give it away.
Spot on Darren, that’s the area, so I’m sure that’s the same company, although I’ve not seen the ACA episode myself. Sort of explains the lack of response we’re getting due to the bad press…
Cheers
WeiHi,
I thought I’d provide a little light reading for a Friday arvo…
A few years ago I purchased a property for $38,000 when the original list price was $50,000.
I then turned around and wrapped it to someone else for $65,000 – only to have the original real estate agent call me ‘unethical’.
I was gobsmacked and speechless, since this agency charges above market commission on the basis that they provide a better service.
“Surely”, I said “I offer a different product and a better service and charge a margin accordingly – just like yourselves.” I also pointed out that the repayments that I received were still less than the rent that would otherwise be payable.
I suspect that what the agent was really saying was that he couldn’t get the price, so how could I?
Was I unethical…????… Well you need to decide… but the property two and a half years later is valued at $67,000.
It seems to me that people are quick to point the unethical finger when the buyer is paying seemingly above market value for a property, without understanding that it is a win-win outcome over 25 year agreement and that the buyer gets all capital appreciation.
Just another example of the victim and poor me attitude that afflicts a few people who expect others to constantly bail them out of trouble. It suits them while it suits them and then it’s someone else’s fault when they have no more need.
Bollocks to that.[
]Have a great weekend – go bombers [
]Bye
Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Ekfour. I actually did buy a house in Horsham and wrapped it at the same time this matter was on ACA and in the melbourne sun. I still got many calls from people desparate to get into their own homes. I got a couple of calls from people who had been so called taken advantage of and they still wanted to buy a house from me! Sold the house pretty easily too. One agent told me I was being unethical, others couldnt care less.Keep trying as their is still a demand there. I decided it was a bit to far for me.
Hey all!
Thanks for the update Darren (watching cable tonight?) I guess the mentality is usually ‘Wow thats alot of money’ but its a short term view, if people really understood that we take on risk and work (or some of us do.. [
]! and loose out on capital gain over a 25 year period (the rule of 72 goes out the window on this one)!!! Who’s to say that mark up is not well deserved…I’m tired, going to watch a video
Have a good weekend, I hope I made some sense
Sleepy Sooshie
Hi Darren,
It’s interesting that you’ve got calls. We’ve advetised in the Mail Times (4 or 5 issues now), and so far the calls we’ve received are from Warracknabeal etc where houses go for $20k everyday. Those people are usually pensioners- not our target market, as we’d like them to cash us out sooner, rather than pay off the house in 25 years. I guess our strategy is slightly different in that we’re trying to get buyers before we buy the house.
The last call I got was from a lady in Warracknabeal, yet another victim of the group. I didn’t probe far enough, but from what she said, it sounds as if that the group promised to hand over the keys only after they received the FHOG, but somehow proceeded to repossess the property they never handed over because the buyer “defaulted”. They told her that legal advice was not necessary when she signed the papers. She did in fact get to see the house before buying it.
She is taking legal action, and have recommended our services to a friend of hers. They don’t have a problem with us making money at all, as we’ve been up front & honest with them. Unfortunately the friend is yet another pensioner…
Cheers
WeiWei
A few of our clients are pensioners too. However, they have families who will be the beneficiaries of their estate if anything should happen, so the continuity thing is not an issue.
Of course, if your plan is to be cashed out early, then this may be an issue to you.
cheers
Bruce
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