From what I have read on the forum, there seems to be no middle ground with opinons regarding wraps.
People either love them or hate them.
Most of the other investing methods seem to have thier fans, but no one seems to be against buy and holds, flips or renovating.
Is there any factual data that states what the legislators are looking to do regarding wrapping?J
Hi,
Yes, however at this stage it is still in draft form. However the general context is;
– compliance with the consumer credit code
– easier to understand (plain english) documents
– more transparent disclosure on terms and conditions.Regards
Michael Gruber
President
Vendor Finance AssociationHi Michael,
So there wouldn’t be any problem for people who are fair and genuine, looking for win-win outcome?
Looking throught the archived posts I read that by November 2004 wraps would be illegal in all states.
I took it with a grain of salt, but would also like to know if it had any credit before jumping in.J
Milkman,
There are quite a lot of people who are doing fair and ethical wraps. It’s just that many people don’t want to believe it.
Cheers
[cap]
Scott
Pelican Investments
http://www.pelican-invest.comScott,
I spose its the same old story, the few dodgy operators ruining it for the rest.
I have looked at your site and it looks and sounds very professional.I have noticed that some of the anti wrappers (such as Rebecca) don’t even think that legit operators should be wrapping, that it is still taking avantage of people.
Is your strategy more for long term cahsflow (ala Steve McKnight) or for quick payout and refinancing (ala Rick Otton)? Or a mixture of both depending on the wants and abilities of your clients?
J
Milkman,
you got it in one…. There are lots of “us” out there doing the right thing, adhering to the consumer credit code, trying to do wraps in a professional and ethical manner.
There are knockers out there, who have no idea about how things are done, suddenly giving their expert opinions on how bad wraps are….
Thanks for the feedback on our site.
We are completely flexible to meet the needs of our customer. Most of our customers see us as a short term stepping stone to get into a normal loan within 2-3 years. We are transparent in our dealings and fully disclose.
Our clients are happy with that, as we do not hide anything at all.
We not only do wraps, we also have +cf properties on the books as well….
VF / Wrapping will be around for a long time to come. It’s in many walks of our daily lives if you look closely.
The important issue is education, and regulation.
Cheers
Scott
Pelican Investments
http://www.pelican-invest.comHi,
The Government understands the both sides of the arguement and is working towards a goal that will balance both sides of the equation i.e. protecting consumers through better disclosure and maintaining an environment where those who wish to provide vendor finance may do so.
And the question whether vendor finance and creative funding structures will exist in the future, simply read here for your answer…
http://www.commbank.com.au/personal/homeloans/familyequity.asp
If some of the top 4 bank in Oz see a market for creative financial structures, then I hazard a guess that the government will not ban it. I will be interested to know if this package will be allow in South Australia?
Regards
Michael Gruber
President
Vendor Finance AssociationScott,
How do people react when they see how much you make when dealing with them? Or are they more concerned with the end result, owning their home.
Do you have a standard ‘mark up’ or does that change with each deal?
I think there is a bigger market now for wraps because affordability is lower than before. Less people are able to secure traditional finance becasue of the deposit required, so starting now, albiet at a higher cost, is better than not starting at all.J
Is it too simple to think that wrapping is like buying stock , ie lounge suite, on a store card at 24% interest?
You get the product but pay a bit more for it because you can’t pay for it upfront?J
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