Hi johannI can't profess to be an expert on the whole development side of things, but here is my understanding…1.  When you decide to do the whole company structure is entirely up to you, and different people will advise different things.  Accountants who charge to set them up will often advise setting them up ASAP, while other investors may a…[Read more]

Hi DanielleIt is a lot of money, isn't it?  Although these days it's a bit cheaper than it used to be!  We put ourselves in a position where we HAD to make money from it, because otherwise we wouldn't be able to eat with the $2700 per month that we were paying Rick for nearly all of 2008!  Assuming we had to eat, we probably would have lost one of…[Read more]

Hi Steve and allI've done a few of these in Qld, and am a bit confused about your accountant's advice re: GST on buying houses to sell on vendor finance terms.  Apparently your accountant said – " if i am seen to be in "the business" of developing or buying property to sell on vendor terms – the property is seen as trading stock – therefore hav…[Read more]

Hey dorkyI'm a little confused about what you're planning here.You seem to be planning on buying the property on a 2 year LO, and asking how to make money from it?  I assume you're also planning on selling it on a LO as well??If that's what you're planning, it's good that you aren't after much back end profit – because I can't see you getting…[Read more]

Ahh yes, the FHOG….I finally received my first one last December, and have two more coming through this month – might go skiing this year after all!Contract must be in existence for 12 months or more, they must have made payments totalling at least 10% of the purchase price and they must not be in default.  Then they have to sign a stat dec…[Read more]

Hi guysAhh, you gotta be careful bagging vendor finance in the creative forum! Actually Paul, this isn't the first time I've heard Rick's wrap pack is no longer available.  I'm not 100% sure on it, but Rick did say recently he was moving to just teaching the one strategy (LOs) because two strategies leads to more confusion than action!As for RE…[Read more]

lolGood luck finding a lawyer familiar with the new legislation at this point!  After Tonly talking to us for 2 hours a couple of months ago, I'm not sure who was more confused at the end of it all!In any case, I'll certainly be registering sooner rather than later, even though it may be a while before I would be technically required to.Aside…[Read more]

Yeah, I'm all for the idea of using credit cards for your deposit – although I haven't done it yet. As Terry mentioned, it will SEVERELY effect your borrowing capacity – because of higher interest rates and shorter terms, 20 grand on your credit card is going to decrease your borrowing capacity by a LOT more than 20 grand – closer to 100 grand…[Read more]

Hi guysI've done a couple (of dozen) of these, and I work them out a little differently.I start by working out what the property is costing me per week, and then come up with an amount per week above that I think is reasonable.  I then work out all my figures around that in reverse.eg, I have a property worth, say, $250K on the open market, with…[Read more]

Hi AllGuys, if you're serious about wanting to purchase a property using vendor finance do a bit of Math and work out what the payments would be on the kind of house you're after, before hunting around looking for someone to sell you a house for payments that just aren't going to be feasible.The same goes for Rent-buys.The fact is that in most…[Read more]

Ahhh, you've gotta love this thread…The original poster wants us to tell him how it works, but is not prepared to spend the money to find out – that's just great!I can add another voice to the "yes it works" column if you like, but passing on my training I've paid $60 000 for?… I think not!In any case, you can get more information about how it…[Read more]

Hi AllThe "Massive Passive Pack" does NOT teach you how to do wraps – that's a totally different product.  This product does teach lease options and sandwich leases though.Cheers

Ok, this may be a stupid question – but why are you so worried about whether you make a small loss or come out even?  Is it just a pride thing, so you don't have to say you made a loss on the property?  I would think that if you want to sell the thing, then just sell it.  If you can't even work out whether you're making a loss or not (I agree it…[Read more]

Hi againGotta agree with thecrest about property selection.We went looking at open houses on the weekend, and somehow we ended up at this little dump for $250 000 (and it was still overpriced!) Anyway, the agent asked me what I thought of it, and I told her that "scummy houses attract scummy tenants".  She didn't appear to appreciate my…[Read more]

Hi HelenI must agree with pully on this one – what on earth is a challenging rental??  I'm going to guess that you mean the amount of the rental is too high for most tenants?  Although, that's probably not where I'd start looking for VF deals, as obviously the owner has to like the whole idea, and chances are if they're asking too much to rent t…[Read more]

lolDon't let Mr Fair Go fool you with his "inside scoop" guys.  There IS no such thing as a typical LO payment.  I've got a LO at the moment where NONE of the payments are going towards the house.  LOs are just so flexible, that no two people do them the same.  In fact, no two of mine are even the same!  You can make any percentage of the paym…[Read more]

Hi allYeah, my first ever tenant as a 25 year old was dodgy – enough to turn most people that age off property investing I would think!  But (as my wife keeps telling me) this isn't about me….Firstly, you have to make a decision for yourself if it's worth all the effort for this amount of money.  Or if you think it's worth the effort purely to b…[Read more]

Hi DannyObviously it's hard for anyone to give you specific advice when it comes to your exact circumstances.  I guess that's why financial planners get you to give them all that information before they start mapping out your whole financial life!  As for my two cents, the only time I would sell an investment property is if I was planning on r…[Read more]

Ahoy hoyWell of course the traditional method is better IF you have the money or the borrowing power.  If you are buying anything with cash, you have more bargaining power, and can therefore negotiate a lower price.If you don't have the ability to come up with all the cash to buy a house, and you want to get into the property market, then these…[Read more]

Ahhh, bummer!"Licence to occupy" is not something I can claim to be familiar with.  I was told that licence to occupy was originally how people started doing rent to buys in QLD.  However, some people who should be trustworthy say some crazy stuff about VF that is just plain wrong.  For example, the SA governement in a recent piece of le…[Read more]