Hi again guys. Best of luck at the meeting tomorrow. I hope it goes really well for you.

As I mentioned, unfortunately Tue evenings don’t work for me, so I’ll just have to experience the meetings vicariously through others for the moment!

Cheers,

Adam

Oasis Finance
for your Vendor Finance solutions
Achieve the Dream!
[email protected]

Hi Mary-Rose,

It’s great to hear that you’re so excited after the Masterclass yesterday – best of luck in the coming weeks and months putting it all into practice!

Regarding an investor group in Brisbane – you may not be aware, but there already is one. It’s called the Better Investing Group (BIG), and it meets on the last Tuesday evening of each month down in Salisbury (southern Brisbane). The website is http://www.big.org.au/ so you can check it out. Unfortunately their timings don’t suit me as I have to work every Tue evening [thumbsdownanim

If BIG’s timings don’t suit you either, please get in touch! Because I would LOVE to be involved in an investing group like this!

Kind regards,

Adam

Oasis Finance
for your Vendor Finance solutions
Achieve the Dream!
[email protected]

Hi Gavin,

For all you could ever want to know about the FHOG, check out the website – http://www.firsthome.gov.au/

Hope that helps,

Adam

Oasis Finance
for your Vendor Finance solutions
Achieve the Dream!
[email protected]

Craig,

No probs. I hope it all goes well for you! I also think you’re probably onto a good idea to look further out where prices are lower – at the end of the day, one of the reasons people will come to you to do a wrap is because of income considerations. If you’re talking about a property in the 300s, with your mark up of 15-20%, and the higher interest rate you’ll be charging, weekly repayments would soon start to become unsustainable for your clients.

This is one of the reasons why we tend to concentrate on the lower priced areas. Under $200K is good, under $150K is even better.

Then again, in regional areas you do need to make sure that banks will lend on the properties involved, at the LVR you desire. This can turn into a bit of an issue if you have limited capital and are looking for 90-95% LVR!

Well – best of luck!

Cheers,

Adam

Oasis Finance
for your Vendor Finance solutions
Achieve the Dream!
[email protected]

Hi Tig3r and welcome!

Firstly – my initial thought (and I fully understand that this is a gross generalisation!) is that being a passionate athlete, you are motivated and determined to succeed in whatever you do. So that is a great (and essential in property investing!) start!

My second thought is that you have made the best move possible by discovering this forum – it is an absolute wealth of information, and an invaluable FREE resource! Use it and maximise its potential to assist you in your goals – whenever you have a question, do a search to see if that question has been answered before, and if not, ASK IT! Then filter the answers you get and do some further due diligence to ascertain the way ahead for yourself.

Thirdly, by making a start at 19 yrs old, you are setting yourself up for immense success in the yrs ahead. Most people your age (as you will no doubt be very aware – probably to your unending frustration when you want to talk to someone about what you are doing!) have no idea about property investing, or in fact anything but partying and having a good time! (Not that there’s anything wrong with that!). So you are streaks ahead of your peers in that regard – well done!

Right – enough blowing of sunshine! You asked for suggestions on where to start investing. I thoroughly agree with Shwing for starters – never waste an opportunity to learn, and you are in the fortunate position of studying finance which is central to all things related to wealth. Don’t waste this opportunity! Learn as much as you can.

I also agree with Shwing that there is no need to wait a moment longer to start actively investing. You may not currently have enough money to put a deposit on a house, but you need very little to put some away into short term investments – term deposits, shares, etc etc. The best way to learn is to have your money on the line, so do a bit of research and then make a start.

The only other bit of advice I have for you is that there are lots and lots and lots of ways to make money. If you choose property investing, that’s a great start, but even within property investing there are still lots and lots and lots of different methods you can use. The trap many people fall into is that they get into property investing, start learning about a certain strategy, then hear about another and are sidetracked into learning about that one. Then they hear about yet another and again they are sidetracked. And eventually they are THEORETICAL experts on many different strategies, but they haven’t actually DONE anything using any of them.

The point here is that I suggest you do some research, then decide on a strategy that seems to sit right for you, and become an expert in that strategy. Sure there are lots of other ways of making money, and you will be tempted by many of them during your journey, but IGNORE them and concentrate on the one you have chosen. After a while, you will have some practical experience under your belt, the money will start coming in, you will become even more expert at your chosen strategy, and eventually your income from this strategy will exceed your expenses – and then you are financially independent! After that, you will then have the luxury of doing WHATEVER YOU WANT – and if that means you then go and learn about all these other great money making methods then so be it. But the point is – SPECIALISE initially. Become an expert in one area. Then when you are successful in that area, THEN diversify. But don’t allow yourself to become sidetracked by every “new” method that comes along.

Right – I hope that gives you a bit of food for thought!

Best of luck, and I look forward to reading about your successes!!!

Cheers,

Adam

Oasis Finance
for your Vendor Finance solutions
Achieve the Dream!
[email protected]

Hi Swifty,

Now I don’t know whether I’ve misunderstood your question, or whether you’ve misunderstood how Wraps work…

So please allow me to very briefly outline how a wrap works, and then maybe that’ll either help you or you can come back and correct my misunderstanding (!). So here goes:

You buy property for $100K. You pay 20% deposit, and have standard mortgage of say 7% with a 30yr amortisation period. Therefore weekly P&I repayments on $80K at 7% over 30yrs = $122.74.

You find potential buyer who can’t get finance from traditional lenders. You enter into contract to onsell the property to them at an agreed price, over the amount which you paid (say +20% in this case) with deposit (say $10K – perhaps with the assistance of FHOG) with the balance to be paid in installments over 30yrs (ie. same timeframe as your mortgage). You calculate their installment payments based on their purchase price (in this case $120K), less their deposit ($10K) = $110K. Their interest rate will be set at a margin above yours (in this case let’s say + 2% = 9%). Therefore in this case their weekly installments will be $110K over 30yrs at 9% = $204.14.

So the figures in this case would be as follows:

Cash in:
20% deposit = $20K
Closing costs (at approx 5%) = $5K
less Wrappee’s deposit = $10K
Net cash in = $15K

Cashflow:
Wrappee’s weekly payments ($204.14)
less Your weekly payments ($122.74)
= $81.40 per week x 52 weeks
= $4232.80 per year.

Therefore CoCR =
$4232.80 / $15,000
= 28.2%

Now – clearly this example is oversimplified, however it should give you some idea of how a wrap works. Does this make it clearer for you? If not, or if I’ve missed your point entirely (!), please post again with your question![biggrin]

Cheers,

Adam

Oasis Finance
for your Vendor Finance solutions
Achieve the Dream!
[email protected]

Westan,

Thanks very much for your reply. Finance shouldn’t be too big a problem for my lovely wife (who’s Canadian), so there’s one box ticked (hopefully!).

We’re interested in Nova Scotia (which is where she’s from), so if you have any details from that part of the world we would most appreciate it.

I’ll also have a good look at the website you suggested – thanks!

Cheers!

Adam

Don’t let life get in the way of living.

By the way – I do have Wealth Guardian and I would definitely recommend it if you’re serious about property investing. It is an excellent resource.

Cheers,

Adam

Don’t let life get in the way of living.

Hi Danny,

Which state are you in?

Feel free to PM or email me and I can send you some info.

In the meantime I’m sure some of the experienced forumites who are mortgage brokers may be able to provide some comments / suggestions / advice.

All the best!

Kind regards,

Adam

Don’t let life get in the way of living.

Aquila,

You’re absolutely right! Thanks for correcting me. Done in too much haste!

Regards,

Adam

Don’t let life get in the way of living.