Hi,
I’m interested in starting a business doing wraps but would also like to keep my day job (as a lawyer). I therefore have a couple of questions about the time investment necessary:1. How long does it take to set up a wrap transaction, and in what timeframe is it usually done?
2. How much time does the ongoing management of the property take up once a deal has settled?
3. At what point would I need to consider employing someone to manage the transactions and portfolio (ie. how many properties before it would become too time-intensive)?
Thanks!
Josh
A wrap is just a sale, with a bit of a twist. I guess how long it takes depends on how good you are at onselling. Management should be less hassle than a normal rental as you don’t have to worry about repairs, etc.
Terryw
Discover Home Loans
Parramatta
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Hi Josh
1. The best we’ve done is settle on the property one day and have the wrapees move inthe next. The worst so far has been six weeks between settlement and the wrapees moving in. As a wild guess, after you’ve selected the property (or if you use Steve’s technique, after your wrapees select the property), it might take about 15-20 hours of work to get your wrapees into the property. It depends on how much “hands on” marketing of the property you want to do.
2. Our experience shows about 10 minutes per property per week. We bought good Wrap management software. Might as well give it a plug, we use LoanAlert.
3. There is a company in Sydney who will completely manage the ongoing administration of your wrap properties for 4.5% of the Instalment payments. We know some people who have started out-sourcing their Wrap administration right from the begining and just added the cost into the “numbers” for the transaction. Not a bad way to go, looking back from our perspective. We’ll probably move to this system soon and we’re doing transaction number 11 at the moment.
Goodluck.
Cheers, Paul
Paul & Karen Dobson
negative2positive
Turn your negatively geared property into a positive cashflow investment.
Phone: (02) 4984 9540Paul Dobson | Vendor Finance Institute
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As a Company we have always sourced our purchasers first and then let them find their own homes so this takes a lot of time out of property sourcing.
In regards to the on-going managment i guess as Paul states it depends on how many you have under Wrap. With still 160 properties owned by the Company I own we employ 2 full time ladies to deal with the day to day running of the business and the collection and managment of each property.
Each to their own i guess and how involved you want to be now and in the future.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
whats a wrap?
A wrap around mortgage or sale by Instalment Contract
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
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