Hey ZIZ,
The main reason some are not for buy and hold even though the yield is high is because I want to generate cashflow. Of the five I have (six as of tomorrow) I want to keep three definitely as they are in good positions and growing (Capital Growth) nicely and are yielding 9% or more (gross). The others are good yields but I only want to keep a core stock of what I consider the best properties and use the others to generate cash to pay off the core stock. I hope to end up with 25 properties in 15 years returning $200K and debt free. To do this I will use some less desirable stock to get there. I am only in my formative stage of planning but that is where I am headed. The difference to me between just renting the property (return ~ $1200-$1500) wrapping (return ~ $3000-$3500) is considerable enough to make the process worthwhile. I may miss out on capital growth but I am happy to use the cash to pay down my “core” stock.

I hope this makes sense.

I am keen to get to the seminar in November so I can clarify some of my exit strategies. I have learnt over the last 6-8 months that (as steve says) before you buy work out your exit strategy. I am trying to be creative with the last two purchases as one is renovating (which could yield up to 50% Property value increase and the other is a subdivision and/or renovation as well. I enjoy the variety that my expanding exit strategies give me. Any more questions ZIZ fire away….I am only an infant but writing gives me further clarity.

Enjoy

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A 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 Smith

Stumbling blocks are merely stepping stones for the successful.

Thanks Robert,
I’d love to hear more on how you do lease options…… If possible. My email is [email protected] if you wouldn’t mind a chat.
Enjoy
AD

Stumbling blocks are merely stepping stones for the successful.

Steve,
Here are my thoughts on why ??

1. The first and foremost is the asset protection of the investments. I have heard you and others all recommend looking at this process as a means to protecting your assets into the future. This would (as I see it) require a company to be set up and then trusts established as needs arise (per properties). I want to make sure I have an accountant who understands the type of transactions I am enterring into and will therefore recognise the most appropriate structure.

2. The reason I specifically ask for someone who has Wrap familiarity is so they are an individual who is on my team of advisors and who is able to give me advice that is helpful and appropriate in regards to the legalities of structuring a wrap. You recommend having the best of advisors on your side. Thought that with all the very active wrappers on this site someone may have had a particularly good Accountant.

3. Someone to advise me on the best possible way to account for my wraps so they can complete my acounts quickly/easily and the paper work will suffice for any audit attention.

These would be my major reasons for the request but I am all ears as to your advice because I am just a newbie.

When you talk of systems and software is this what you/Dave covered in your CD’s in regards to the home loan program,etc. I would love to now more about your system of managing the wraps through your basic systems. I know it’s a big one but I think you’re used to that by now Steve.

Enjoy

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