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Brett
I was really impressed with a deal he did on a tv show. Bought a run down property and onsold it to a couple that put in sweat equity to buy it with no money down. It was amazing what the couple managed to do with the house with very little money and a very short time frame (from memory they did the full reno on about $5k in less than a month including new bathroom and kitchen). When they had finished, they had enough equity in the property to buy it without a deposit.
The course seems quite expensive though.
Hi Mattnz,
Yeah I remember that, it was a great deal for everyone!
I suppose the definition of “expensive” will be different for everyone… For me, it was far more expensive not knowing this stuff earlier. The money I’ve saved (not including the profit made!) in just one deal alone would pay for this course 5 times over!!Cheers,
BrettI have completed over 180 wraps here in Qld over the past 14 years but wonder how you financed the deal to onsell in the current climate as no lender will knowingly lend where the property is being onsold by way of an instalment contract.
We as a Company (First Home Owners Group Pty Ltd) had an arrangment with a couple of the major Banks however your average investor would not be able to forge such a relationship.
Richard Taylor | Australia's leading private lender
Hi Richard,
I tried with Westpac, first was told yes, they would allow me to do a wrap and then later told me no. I tried St George next and they had no issue with it, so I used them instead. This was around middle of 09.
Hi guys,
In a way, it’s a good thing that the lenders are cautious as a rule… Although in the past I’ve found that employing the right people often means that there is someone willing to use their discretion and common sense.
If all else fails, there are many more ways to put transactions together. I prefer to fit the right tool to each situation.
Cheers,
BrettBrett hate to say doesnt matter who you employ no standard lender will openly lend against such a security where the intent is to sell the property under an instalment contract or similar.
Mattnz you are bang on it is the attitude of all lenders.
Having been involved in wrapping, LTO's, 2nd Mortgage Carry backs etc etc since 1996 i have seen a few deals.
There is no right tool if the Banks wont lend to the investor or you in the first place.
Richard Taylor | Australia's leading private lender
I understand Richard. So do you have a solution? If so I’d love to catch up.
I’ve also seen mortgage documents that require the lenders consent to simply rent a property – how crazy is that!This thread has gone off topic, so i’ll leave it with the thought of how nice life would be if you didn’t need bank finance to begin with!!
I've also seen mortgage documents that require the lenders consent to simply rent a property
Sorry i dont see anything crazy about that as it is the lenders risk if he has to execute his right of possession and his sale options are limited because of a prevailing tenancy.
Yes the solution is to be big enough to obtain lenders consent as we have always done.
Both Anz and NAB at National Credit level Melbourne have financed our deals for the ones we needed finance.
I do several deals in my SMSF where financing is not required.
Richard Taylor | Australia's leading private lender
Hi Richard,
In relation to your comment … "Sorry i dont see anything crazy about that as it is the lenders risk if he has to execute his right of possession and his sale options are limited because of a prevailing tenancy".
All the banks have to do is issue a "Notice To Tenants By Mortgagee Requiring Vacant Possession" notice and the tenant has to vacate the premises or be removed.
I deal alot with preforeclosures and this notice was issued to 3 properties last week.
Property Trader | Boston West Pty Ltd
http://bostonwest.com.au
Email Me | Phone MePrivate money lending opportunities available paying upto 12%, secured by bricks and mortar!
Hi Jason
Hate to disagree but it is not that easy.
Most of the major lenders prohibit the owner signing a Tenancy Agrement for longer than 12 months without the mortgagee express consent. Now whether he does or not is a different matter.
With regards to a Instalment Contract their is no Tenancy as the purchaser has a right of posession albeit not ownership.
Of course this brings with it further issues of protection for the wrappee irresepctive of whether he / she has a registered caveat on the property. Caveats can easily be removed with a Court Order and have done this on a couple of ocassions.
Richard Taylor | Australia's leading private lender
Man this thread went on a huge tangent from the bootcamp.
I want to know if anyone has done a course like this before and whether they thought it was worthwhile?
Ryan McLean | On Property
http://onproperty.com.au
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