- persistenceMember@persistenceJoin Date: 2004Post Count: 12
A few wrap questions from a complete beginner.
1. I’m considering my first wrap deal and have a question for any experienced wrappers. Is it better to find the tenant first and let them pick the property (subject to your ok), or find a property first and then find a tenant?
I’m imagining the tenant is going to have a more positive approach to teh whole thing if they have a stake in finding their own property rather than being given a few properties to choose from.
2. Any thoughts on whether a wrap is advisable for a first property deal, or should I stick to something more straightforward? I’ve got fairly limited deposit funds at the moment and need to find ways of generating more so I can get into the game. I’m also very much a people person,and I like the idea of such a win-win approach, so this technique appealed to me.
(Yes, I am very new to all this. And yes, I am going to buy Steve’s wrap kit, but couldn’t wait to ask these burning questions…)TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
I would go for the tenant first, and get them to find a property with your help.
If you are after cashflow, then wraps maybe the way to go. But there are properties out there that provide cashflow and Growth.
Discover Home Loans
[email protected]FWMember@fwJoin Date: 2002Post Count: 478
Personally I’ve always found the house first, then the buyer. Yes, it means I have some holding costs, but I find that by buying the houses at better prices, my margins are easier to achieve without the house having to be onsold at too high a price.
FelicityPaul DobsonParticipant@pauldobsonJoin Date: 2003Post Count: 1,196
Karen & I have done both. For the first 3 we bought the house first and then for the fourth a couple approached us. We checked them out, worked out their price range with them and sent them off looking with strict indtructions to say nothing to the real estate agent, except to ask for the asking price When they found a place that they loved, they handed over to us and we negotiated the sale.
We were impressed with this process so we’ve just finished advertising for “the people” which, by the way, had a great response. Number 5 should be underway soon.
Cheers, PaulpelicanMember@pelicanJoin Date: 2003Post Count: 454
We have done heaps of deals by having the customer first.. The issue is finding people….. ( which isn’t too hard !! )
In today’s market, with values moving all over the place, it’s probably not that good to be holding something you may not be so sure of moving quickly…….
You may know the cost of everything…. but what about the value ????Supa FreakMember@supa-freakJoin Date: 2004Post Count: 101
We have also done both…
the trick when buying first is to buy something that you would live in your self ( might need a paint or new floor coverings,but definetly not a renovators delight). And as FW said, buy at a discount.The houses practically sell themselves
Persistance: the hardest thing about wrapping is getting the confidence, to believe you can put it all together, then it’s too easy ( you’re right Pelicaninvest). Also get yourself a good team and watch the deals roll off the production line…
Well done PaulD, if you’ve done 5 you can do 500!!