All Topics / Creative Investing / Wrappee want to rent out

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  • Profile photo of jabjam2004jabjam2004
    Member
    @jabjam2004
    Join Date: 2004
    Post Count: 22
    October 20, 2004 - 12:30 am

    I have a potential wrappee who has

    $15,000 deposit
    $1400 per week after tax income

    and wants to rent. He won’t have the owner mentality/commitment of a usual wrappee and I’m wondering how I could compensate for the additional risk involved with having tenants in my wrapped property? Does anyone have any ideas please?

    Secondly, his income is difficult to verify since he is self employed having spent a large portion of his income on business upgrades and establishment this last year. ANy ideas on how I could verify his income.

    Thanks all
    Jennifer

    Profile photo of FFCommFFComm
    Member
    @ffcomm
    Join Date: 2004
    Post Count: 627
    October 20, 2004 - 4:59 am

    I wouldn’t allow anyone to rent out a wraped house.

    Can you imagine the legal issues. Not only with a take back from the bank, but even insurance issues (if the tennants burn the place down good luck with trying to get your insurance to cover it).

    Also the level of risk is quite large. You are clouding title, and this guys income is hard to verifiy.

    I would stay clear of this. A huge amount of downside for not much upside.

    Rgds.
    Lucifer_au

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 20, 2004 - 5:15 am

    One of my wrappees rented out the property – without my permission. I didn’t know until after they settled on it. Had no problems at all.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    October 21, 2004 - 9:52 am

    I agree with Lucifer.

    We do not allow our wrappees to rent out the without out prior permission and to be honest i would never grant it.

    Saying all that if it was a matter of renting it out or not making the pinstallment payments then i may think about it.

    Thankfully the question has not come up to date.

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

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