Hi All..
I am very interested in wrapping, and am just about to purchase The Wrap Kit… however I have a question about financing…
If I have the cash to pay 20% of a $150,000 property, and then Wrap it, and get around $10,000 deposit…
a) how do I use the first wrap to help me move to a second wrap
b) how do I approach a bank in regard to financing the 80%
c) do I need a particular type of loan to be able to wrap?I have been reading these forums at length, and feel like I’m missing something…
Am I personally meant to keep coming up with the money for the 20% deposit each time? I’d like this to turn into a long term business, however I obviously have a lot to learn….
Any help would be appreciated…
Karen
Hi Karen,
Most lenders will not finance properties if they know it is for a wrap. Your first moves should be to get yourself a wrap savy solicitor and a lender who can assist you.
Regards
Alistair PerryYeah you’ll have to keep coming up with the deposits as each deal is seperate.
Some ways to move onto your second deal
Use that $10,000 from the first deal
Save money from your job
Use profits from the first wrap to build up deposit
Find money partners. If you can do a deal returning 20% go 50/50 partners, you’ll have no money down in the deal and be able to do multiple deals and share the profitsI have to say receiving a $10K deposit in wrapping is unusual but in most states you are entitles to receive the FHOG if the wrapper qualifies. The timing of the payment will differ from State to Satet.
Wrapping itself is a business and takes time like any new business to develop. Each deal you do you will become more confident and find ways to build your business.
It took us 9 years to purchase and wrap 187 properties and each deal i believe we learnt something new. Our Bankers were slightly reticent to start with and didn’t even understand the concept however as the business grew and the cash flow increased they could see the indebtedness reducing.
Asses each application on its merits and remember that is your money that it is at risk. Check references talk to employers (get a Privacy Act Authority signed in your favour) and ensure that all of your documentation is legally compliant.
Richard Taylor
Residential & Commercial Finance Broker
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
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