Hi Guys,
I have a question that has puzzled me for a while. Is it as easy to do wraps in country areas as it is in city areas, and is there less damand in country areas for wraps? I presume there is because property prices are lower making it more affordable, meaning less people would have to resort to vendor finance.
I would prefer to do wraps in country areas. Is there any reason why I shouldn’t?
Thanks,
Aaron
Hi Aaron
A very good question!
One without a clear answer, it depends very much on your circumstances and your goals.
Steve McKnight usually recommends working with lower value properties, which in most places means regionals. Because the repayments end up being as cheap or cheaper than rentals, you get good demand from that perspective.
Rick Otton, on the other hand, works mostly in outer Sydney, which is definitely not as cheap! Repayments are higher than rental payments, but you have a large pool of buyers who are struggling to build up a big enough deposit to satisfy a bank.
There are pros and cons to both strategies.
In the end, you can make it work anywhere you choose to make it work, you just have to work out how.Keep smiling
Felicity
Aaron,
Having just done a regional Wrap (3+ hours form home)I will be doing homes closer next time. While the numbers work well I prefer proximity so am willing to buy dearer houses. Just my thoughts.
Enjoy
ADA great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithAD,
The lengths you will go to wrap a property …. I went to 1.5 hours from home to wrap properties but found the distance a absolute killer.
Regards,
Jason Moore
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!
Thanks for the help.
For me to do a regional wrap I would be travelling about 2 hours each way (there and back). Since I haven’t done a wrap yet I don’t know the time the whole thing will take. But I thought the travel would be worth it.
The main reason I would be doing wraps in regional areas is because of the cost. I don’t have alot of money to start and it would help create the income I need to do wraps closer to home.
I believe you’ve got to work hard for what you want and if you have to travel for it, then so be it.Aaron
Hi Aaron
Is driving for a deal a hassle or a godsend?
When I first started, 1-2 hours in the car was not a problem.
I listened to educational tapes, made phone calls, thought about my long term strategy and even role-played interviews with prospective purchasers and real esate agents.
After a while and I had listened to all my tapes 3 or 4 times I started taking friends on the road with me to keep me company.
They would ask me what I was doing and by telling them I was also positively reinforcing myself as to what I was doing.
Now when I have to go on the road (not that often for existing deals) I look to it as a way of getting a couple of hours to myself. No kids screaming, no telephone calls if I don’t want and I get to have a nice leisurely drive to gather my thoughts.
I know people who think it must be a hassle but I remind myself that driving 2 hours is a small price to pay for financial freedom.
Hope this helps
Dave
Dave,
I can see your point ….to a degree. I also see that 2-3 hours driving as time spent away from the things and people that I love. If I can wrap a property down the road and make the same sort of returns and then be able to spend more time with my lovely wife and two beautiful daughters, I will choose down the road every time. I have talked about this with Jason before and having both done this we now see the sense in close to home transactions. While Jason is a way ahead of me I can only agree with the sentiment of minimal travel for more quality time…..
ADA great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHi Dave & AD,
I can see both your points. However if there is a great deal to be done 3 hours away I would drive there, because who knows when I’ll find my next deal. I agree with Dave that it is good thinking/learning time while driving, I do it myself all the time whenever I drive.
For me, I’ll be starting by doing wraps in areas I can afford. Which means I’ll be traveling 2.5 hours from where I live. Then after I build up my income I may be able to do deals in or neer my own area.I bought Steves Wrap Library a week ago, I haven’t had time to start going through it yet but I have quickly browsed. It looks like a good quality product. Well done Steve.
Lets hope this is the begining of my brighter future [
]!!!Aaron
Hi,
Asalws, after you do your first few wraps, then you might want to find someone interested in doing wraps in partnership with you, in an area that is further away from you. Let’s just say, if you were to do this wrap at a great local approx. 2-3 hrs away, the wrapee may just want to become a wrapper once he’s cashed you out and has enough equity in his home to become one. Remember it’s a Circle of Life and wraps could become a Circle of opportunity It’s just a thought though.
Our first wrap is 1hr and 45 minutes away and we took our (then) 9 month old and our 3.5 year old with us for the drive… A CHALLANGE to be sure!!! We’re not sure how we accomplished that feat with about 3.5-4 hrs in the car, but where there is a will there’s a way.Cheers and Good Luck
Soosh [
]It’s all our imperfections that make us perfect!
Hi Aaron, mate everyone else has indicated convenience issues. Also be aware how “regional” you’re considering. Lenders have difficulty lending in areas with populations below 10,000. Indeed, the further out you go, the less options you will have.
Jason has very effectively “delegated” duties to real estate agents in the rural towns where he wraps, which frees his “maintainence” duties up considerably.
There are always bargains in your area which will help you with affordability issues. BUT, you must be out there full time in the faces of the real estate agents. Many of the bargains don’t hit the newspapers or agents windows.
I’d prefer to spend 4 hours (2 hours driving each way) looking at properties in your area, in the faces of the real estate agents. Eventually, one of them will admire your persistence and “invite” you into one of the bargain properties. (even if only to get rid of you! hehe)
A few tips, NEVER loose your cool with the agents, ALWAYS be professional and thankful of their time. It may take you 4 months to find the deal, and dozens and dozens of door knocking calls but you WILL find a deal.
EXPECT IT, your subconscious will do the rest. Just make sure you also DO what’s required in the way of ACTION. Thinking doesn’t get the result, DOING does. The thinking just keeps you focused.
I can only speak from what’s working for me, we’re currently in the hughest property boom in my market place, however we we still able to find bargain properties. Build relationships mate, that’s the angle.
Hope it helps, have great day,
Mike
Remember, life’s about Family, Fun and Finance (probably in that order).
Mike
Director
http://www.PositiveCashflow.com.au
“Positive Cashflow for a Positive LIFESTYLE”
because
“Life’s too short to be Negative”
]!!!
]
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