Hi
What would people do as part of DD to screen and
qualify candidates as a wrapee, of course apart
from the obvious things like:– credit check (do I have the right to do that as
an individual)
– rental history
– employment history, what if this guy is asset
rich but poor cash flow, how do we verify that ?
– asset base ?
– litigation record
– criminal offence ?[
]
– may be more that I can’t think ofIs the DD covered in the seminar and Wrap library
in great detail ? I would assume so, right ?The next question is, is any 3rd party company out
there specialising in operating DD process on
behalf of clients ? It doesn’t mean that I am
taking the short cut and not do it myself, but
rather, knowing if there is someone out there who
does that professionally, you would trust their
biz experience and skills in producing the best
leads … I guess this is part of the team to grow
when considering getting into a wrap deal ?And how many wrappers out here who also employ
3rd party company to manage the “rental payment”
once the wrapee signs up, ie to deal with late
payment, default etc ? Again, I am not looking for
short-cut but consdering any existing services I
can leverage of.And finally, I know many of the questions asked
here are covered in either the book or seminar but
I just haven’t got a chance to get myself onto any
of those … just hope this doesn’t bore the day
light out of the more experienced guys out there.TIA
MCWHi
Nothing wrong with ‘taking shortcuts’ as you put it, I would actually call it leveraging your time.
Our due dilligence is as follows
i) Rental history – Speak to last 2 landlords about payment history
ii) Employment History – Verify employment and salary details; ie call employer, check pay slips. You also may like to check that the company does exist and that it’s not a sham or their best friend pretending to be their employer – Been there… Not good!
iii) Credit check – Wrappees do this at their own expense; it costs $19.95 from Baycorp which they receive in a day or two and then forward on to us.
We return once it has been checked. Technically, we’re not allowed to keep a copy due to Privacy laws
iv) Another thing you may like to do is to visit them at their current residence to see how they live. Because how their house looks like now is how yours will look in 6 months time!!
That’s about it really… Also finally best form of due dilligence is gut feeling…
Forget about the tempting cash deposit and follow that and it’s hard to go wrong.
Cheers
David U
Thanks for the reply, Dave.
Any idea of a 3rd party company who can does a
quality DD on potential wrapee, short of going for
a realestate agent ?Thanks
MCW
Thanks for the reply, Dave.
Any idea of a 3rd party company who can does a
quality DD on potential wrapee, short of going for
a realestate agent ?Thanks
MCWWhy not do it yourself? Look at the application forms for various lenders, they have all the questions that you should be asking the person. The more declarations the better!
Are you known by any other name? YES/NO
Have you applied for finance with another institution? YES/NOA privicy statement is a MUST before getting a credit check (if you get it. If they get it then its ok).
Also get a financial statement of what they own and how much they owe. If they are 60 years old and have $2000 in assets then maybe they can’t handle money well? ask them questions relating to the data they give you. By the looks of things you have the right idea! The things you listed in your post are all spot on.
If you want I can fax you a copy of the application forms I give to customers (I work for Mortgage House) and you can get some ideas of what we like to see. Give me a call if you want a copy, my number is written below.
Otto Dargan
Mortgage House Five Dock
02 97128988
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