There is a transcipt of teh chat with Steve on TodayTonight’s website at
http://todaytonight.com.au/factfiles/646144.htmlSteve reveals he has purchased another 30 properties now and i was surprised to learn that only 40 of his properties are wraps, the rest are buy and holds.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Interesting read, I was also surprised at the low percentage of wraps. Steve seems to push the wrap side of things more in his posts here. Maybe the wraps are just to provide the cashflow to finance deposits for the buy and holds which are the real “wealth builders”?
Rod.
Problem with the wraping is you can’t expect capital gain at all. And in positive cash flow property you will be having capital gain ( though in most cases not much ) which is also very important if one want to keep on buying.
Amit
I’d say another problem is finding people that want to be wrapped no?
Thats been my view on wrapping. Like how easy is it to find someone that will agree to pay +20% market value, and +2% interest?
Hi Terry,
Interesting figures. I think because Steve doesn’t view the wraps as a long term strategy, but the buy and holds are.
it wouldn’t be a good wealth creation program if 130 wrappees cash him out in 3 years!
Otherwise his next book could be titled “From 130 to 0 in 3.5 years!! [
]Del
Hi OlorinSledge
You’d be surprised how many people would love to buy a home and can’t get finance. Estimates put it at around 15-20% of the market can’t qualify for a multitude of reasons.
This is one of the reasons I like Rick Otton’s strategy of encouraging people to refinance fast (ie 1-2 years), because most people are willing to pay the extra for a short time if they know that long term they’ll have their house and will soon be able to get into a normal bank loan.
Also, in my experience, both Steve and Rick do talk about buy and holds as an integral part of their strategy. Because as Rod says, buy and holds are the long term wealth creation assets, wraps are merely a cashflow creator. I know that’s why I do them!Keep smiling
FelicityClassic Del! That line cracked me up [
]You’re right – the wraps help fund the buy and holds (by providing the deposits for more buy and holds) and I am sure Steve said somewhere that buy and holds are the long term key when it comes to passive income.
Be flexible with your exit strategies everyone…
Tas [
]Yes I realise its costing me about $500 per week in CG forgone ( excluding cash outflows ), for every week I delay my next IP. Assuming a 10% capital growth opportunity is not being taken advantage of by a 260K asset
]
]
The topic ‘From 0 to 160 properties!’ is closed to new replies.
