11 second rule and wrapps?

Viewing 6 posts - 1 through 6 (of 6 total)

rakky
Member
@rakky
Join Date: 2004
Post Count: 26
March 25, 2004 - 10:00 am
Does the 11 second rule apply to wrapps?
pelican
Member
@pelican
Join Date: 2003
Post Count: 454
March 25, 2004 - 12:30 pm
It’s not what it was designed for…..
return on your investment in a wrap deal is higher than usual buy and hold scenario.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 26, 2004 - 2:16 am
You can wrap any property. including highly priced Sydney property.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
brent
Participant
@brent
Join Date: 2001
Post Count: 165
March 29, 2004 - 2:42 pm
The 11 second solution is a quick filtering tool which helps find properties which are likely to be positive cashflow. (ie – rental properties with high rental yields).
It’s not really relevant for wraps (rather, rentals), and isn’t the be-all-and-end-all of investing. (be careful about this because I suspect that some agents are using the 11 second solution against investors in some areas)
The best use for the 11 Second Solution is when you have 100 deals on your desk and you want to find some great yields amongst them
Brent Hodgson
PropertyInvesting.com
Admin Manager
I’m going on a property buying tour! Want to receive the e-mail diary of my trip, hear about some of the great Positive Cashflow deals I find, and perhaps discover some great opportunities for yourself? PM me!
techa
Member
@techa
Join Date: 2004
Post Count: 79
April 1, 2004 - 12:05 pm
{{return on your investment in a wrap deal is higher than usual buy and hold scenario.}}
Pelican are you sure about that over the last 5 yrs or so??
If so please explain!
Sibo
Participant
@sibo
Join Date: 2003
Post Count: 126
April 3, 2004 - 8:57 am
The 11 second rule doesn’t really apply to wraps as I understand them. In a wrap because the wrapee is paying around 2% more interest than you, paying the property expenses themselves, and paying your capital back plus profit, it is very hard to loose! The 11 second rule applies in rental property because you need around that much to cover all your expenses including interest and make a cash flow profit.
Regards,
Si