Hi,
I am not new to property investing and have used standard financing options so far. However, I am tight on cash reserves at the moment and I hear a lot about doing ‘no money down’ deals and I want to learn the best ways to do this.
Any thoughts or real world experience or course/book suggestions would be appreciated.
Thanks in anticipation
James [suave2]LTO / Wraps / 2nd mortgage / Vendor Finance / Flipping / Wholesale purchase financing against valuation the list is pretty endless.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
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Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Thanks Richard.
I have just spent the last few hours trawling this wonderful site and starting to get an idea of how to put together no money deals.
If I concentrate on wraps for the time being, I am under the impression that I have to get a credit licence to do this. I just read a post that someone in WA said his solicitor said you can do one wrap without needing a licence. Do you know if this is the case in each state? I am in Vic and have an interested wrapee in Qld. Would I need a licence in Vic or Qld for this?
I appreciate any assistance you can give.
Cheers[suave2]
JamesHi James,
Not sure about Qld, but if yopu want to wrap in Victoria you need to register as a credit provider (assuming you would be wrapping to owner occupiers). This doesn’t cost anything, but is a legal requirement.
Regards
Alistair5 mins MAX to get licence
Live, Learn and GrowLifexperience
Thanks everyone.
I will check out what the deal is in Qld.
Cheers
James[suave2]James
No Credit License need in Qld trust me i have done 1 or 2 wraps over the years.
If you sell more than 6 a year yourself you may need a Property Developers License but they give those away in cereal packets. It all depends on how you structure your wrap.
If the Purchaser brings the property to you then that is different.
Email us if you need any more information.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Thanks Richard.
How is it different if the purchaser brings the property to me? With the wrap I am considering in Qld the wrapee is looking for a property himself to bring to me to wrap.
Regards
James[suave2]James
The PDL is required in Qld where you sell 6 or more properties in a year. The ruling we had from the OFT was that where the clients bring the property to you a License was not required.
If you renovate and then onsell your own property then a License is required.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Great, less running around for you and the purchaser has an emotional attachment…….. he found it!
otherwise no difference
Live, Learn and GrowLifexperience
Thanks guys. I really appreciate it.
One last question I hope. I have heard that a special contract is required for wrap transactions which are available only from a small number of solicitors. Do you know where I can find one of these rare solicitors and could you please provide any contact details you have that you are happy to share?
I am not sure if the contracts differ in each state due to state regulations but I will need one for Qld for this current prospective transaction and one for Vic which is where I reside for future transactions.
Warm Regards
James[suave2]James
i can sell you one for Qld. Good enough for us to have done over 200 wrap transactions over the last 10 years so should be fine for your Qld deals.
Email me if you are interested. Also let me know details of the type of investment amount you require in your other Wrap Post.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
I can give u access to someunbelievableinformation on simultaneous settlementsand put and call purchasing, so ask me how
D
Sorry E.M., I don’t have anything to sell.
…I’ll check in the shed, um…..
…oh wait, I can sell you an old Holden Red Motor… bit smokey.
Live, Learn and GrowLifexperience
Enlightened Millionaire, I would be very cautious of doing no money down deals in today’s market (excluding WA where it is still booming).
The idea behind a wrap is that after a certian amount of time the purchaser will have enough equity built into the property to refinance and pay you out.
If property prices are decreasing equity is negative and the wrap method becomes very dangerous because you have a purchaser that is not able to access any equity in the home. This does not create a win-win situation.
With interest rates on the rise this also increase the risk of strategies such as wrapping. That is not saying it can’t be done however you need to be more careful about such strategies than in an increasing market.
Liam
Because of market corrections it is always good to be armed with the right strategy for the right market timing……now it is probably wiser to simply assume or take control of mortgages attached to the existing house your thinking of buying…this way you didn’t create the debt and are not liable for it but can profit greatly from it being available…many of my students in the last 12 months have moved this direction as it enables you to get much more bang for the money. Today a student was able to back pay a defaulted loan by 12k and assume a 700k house and i think this is where you may wish to look. You can then move that on for say 800k but you’ve only get 12k involved…hope this helps
http://www.rickotton.com
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