Having not been involved in wraps previousley I would appreciate some advice on the matter of pre-approvals for clients and purchase limits to include my margin. In order to avoid incurring holding costs on properties my preference is to secure pre-approved buyers for purchases up to a limit of eg.$230,000″. I then want to add approx $25,000 as a margin to the purchase price for my expenses etc.How do experienced operators present this to the client or how do they approach the market from this end?. I have assumed I do the negotiating for actual property purchase but not assuming the price has been reduced by enough to allow for this margin.
Pre-approving a wrappee is something for yourself to sort out. Some of the experienced wrappers on this site tell of how they advertise for wrap clients in areas they identify that they want to purchase property in. The wrap clients then find their own property and then you buy it and sign them up for a wrap. This sounds like a feasible way to ensure you have someone to make the payments from the day of settlement.
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdRobert,
Thanks for you reply. I`m fine with qualifying clients etc. My issue is with the fact a prospect may identify a property for eg.$220K but when I have secured it with my margin it may now be $245K. How is this difference presented to the client?You present it as purchase price plus whatever your margin is as a percentage. Eg: 220k + 10%
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdI usually find the house and then the buyer, so haven’t done many in the way you’re describing. However I have done a couple where an agent approached me about a house for sale where the renters wanted to buy. In those scenarios I sat down and worked out the figures and then told them – this is how it’s going to work. Both times the families were quite happy about it, they realised that I had to make money, and they were okay with that. I guess if they hadn’t been, the deal wouldn’t have happened. Both these were set up a couple of years ago, so the houses are now worth more than the wrap price, so they’re not complaining! However I did explain to them at the time that if prices went flat, they would have to wait longer to refinance, and that was a chance they were willing to take.
Keep smiling
Felicity
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