Robert Allen writes in: Zero to $1million on $49.95 per month the following:
103,000 people attended his $500 weekend investment seminars in the 80’s.
20,000 people attended his $5,000 week long wealth training in the 90’s.
In his first book he wrote:
“send me to any city in America, take away my wallet, give me $100 for living expenses and in 72 hours I will buy you an excellent property, all with none of my own money”
The LA Times took him up on the challenge. They flew him to San Francisco with an LA Times reporter. In 57 hours he had purchased 7 properties worth $722,000. Today those assets are worth almost triple that amount.
His claim to fame stands up in as far as he does what he says. To prove this point he took a couple from the unemployment line, who were broke, and using Robert’s techniques went on to earn over $100,000 in the next 12 months.
The point is, I guess, is to read a few of his books, and invest $5,000 in a property instead of a seminar. And, many of the techniques he uses are used here by successful investors.
The way I did it was by checking out the newspaper classifieds under finance, or new homes. Usually the wording is something like: Low deposit, no financials, etc. Alternatively, and something I was thinking might work is to place an ad yourself seeking investor. This forum is the best place to start as most participants are familiar with how they work. Yet another way is to contact the real estate agent (for a house you’re interested in) and asking whether the vendor will settle 80% now, and 20% in 12-24 months time (and providing it’s agreed you can move in). The real estate agents I’ve spoken to understand this wording better than asking whether the vendor will finance. Just an idea. [cap]
The typical profile is someone who can afford it, and don’t qualify for a bank loan, and don’t have the deposit or savings history, self-employed, etc. I’d be interested to know the demographics of how many wraps take place a which price, i.e. whether first home buyers, self-employed, salaried, and affordability, etc. I guess this sort of research would help with deciding whether to do it. [cap]
You’d probably make more money doing a wrap. However, with a LO you’d probably set a pre-determined purchase price above your purchase price, say by 25% with a clause somewhere stating that this is reviewed when the LO holder comes to deciding whether or not to renew it, which would probably be every 12 months. I can’t imagine property prices jumping 25% in a year in this climate. Who knows for sure? Ultimately, it’s beneficial for you both. [biggrin]