HI all

Has anyone done a lease option outside of the state they reside in? I’d like to try this with an investment property, but I wont be able to meet with the individual prospective “tenants”, as I live in another state. It would all need to be done by correspondance.

Can this strategy be achieved long distance or does the isolation create greater risks?

Cheers
Billyray

That just happens to be my limosine right outside

Hmm, quite so.

However I have to say that in my situation, when we applied for our owner occupied home loan, the broker blindly accepted “X years” as the time I have been self employed.

They never asked for proof, never looked at our business name rego certificate, never did any significant due diligence, just ticked the box. We had good equity, but not much to indicate serviceability. It really was a bit too easy I thought. We got a pretty good rate also – low to mid 7%.

Which is why I keep thinking if you can scrape together a deposit (equity) you should always be able to find institutional money??

I guess I would really like to hear from a wrappee and find out what their circumstances were to look for a wrap loan as their favoured option. How hard did they look before entering into their wrap?

Any wrappees out there??

Cheers
Billyray

That just happens to be my limosine right outside

Alexp, you seem to have got the answer you were looking for, but I also have queries about the viability of wraps and lease options.

If an investor wants to do multiple wraps, where do they get the equity each time for each new venture? As a self employed person I would need to use lo doc loans for every aquisition myself – if lenders want 20% equity for each property, where does it come from?

Cheers
BillyRay

That just happens to be my limosine right outside