From a vendor view, I think you should cut down the expectations of making alot of $$$ on a wrap. Already you are minus -$70 and so another $50 will add $120 on top of the repayments, which can be alot for an apartment (wrap clients usually are families that want to buy 3/1, but you can of course wrap units, it’s just harder).

Juat make sure…[Read more]

From memory Steve has less than a quater of his properties as wraps (the percentage could be even lower still).

So that means he has found many CF+ buy and holds. But he has used his knowledge of Problem+Solution=Profit to make some properties which were CF- into CF+.

Rgds.
Lucifer_au

Michael_C they can pull the loans.

Rgds.
Lucifer_au

The ATO is currently looking for these kind of transactions (since they can data match with the banks). Right now it’s a kind of grey area, but it can (and does) bring up red flags aginst you, which increase your chances of an audit and also a please explain (it comes under non decleration of income).

Rgds.
Lucfer_au

In the US it’s called a 1031 exchange (or like-kind exchanges), but here it’s not really avalible (as per Julia’s post).

Rgds.
Lucifer_au

Finding CF+ properties is difficult, but they are out there. Perhaps your still looking to close to the CBD/city, you have to move out to less desirable areas (rural/regional as an example).

Also in Steve’s 2nd book he talks about how problem+olution = profit. Because it’s difficult to find good CF+ you might have to think outside the box. For…[Read more]

I would implore you to read John Burleys Secrets of the Rich, mainly because I think it could help you tremendously.

While it talks about RE investing, it also talks about money habits, habits that can make you entirely debt free within 5-7 yrs (inc. mortgage).

So homework: Read ‘Money Secrets of the Rich’ and Peter Spans latest book (Yack has…[Read more]

Interesting obiwan,

I recently read an article about apartments where there rental yields have dropped dramtically and many REIT (RE Investment Trusts) are selling their multi-family apartments mainly to private investors while yields for apartments have droped to their lowest level ever. Over there it looks like many unsophisticated investors…[Read more]

“Otherwise they are just no good for anthing other than advice on how to minimise tax”

And to tell the truth most are hopeless at that! I read a statistic that approx. 60% of business owners pay more tax than they have to, and that was using simple and common deductions, I would hate to see the figures if you took into account more sophisticated…[Read more]

Wow!!!! So according to your accountant every place must use only 40 weeks rental calc, so basically all properties are un-rented for 3 months (or 25% per yr!!!)!!!! Most places that are very CF+ in the US & NZ would be by that accountants definition CF-!

Perhaps for a hotel/motel/short stay accom. but for a rental??? If you are unable to rent a…[Read more]

It usually isn’t the investment which is a dog, rather it is the investor.
This is a joke right??? Lucifer, you are such a cracker!!!

>For want of a better word… perhaps bad would of been better?
—

To me almost no investment is ‘bad’ it is the investors who are the ones that make an investment ‘bad’.
Oh …my mistake, you were…[Read more]

It usually isn’t the investment which is a dog, rather it is the investor.

Usually the investor is the one that wrecks perfectly good investments. I have seen CF+ properties turned into CF- & CG- by a bad landlords/investors. I have also seen profitable business (that needed no input from an owner), turn into dogs by bad…[Read more]

Lease Options have a number of advantages (and disadvantages) to wraps.

The first advantage is there relativly simple. It’s a lease with an option – easy! Because of it’s simplicity you don’t need a lawyer for the buyer (whom are usually high paid and hence do not understand why anyone would do vendor finance).

The disadvantage with them is you…[Read more]

I’ll add my bit (though it is the same) no if you are implementing a L/O you cannot claim FHOG, however your tennant can still claim rental assistance (where as with a wrap, to my understanding, they cannot).

Rgds.
Lucifer_au

I know banks are more willing to lend to franchises (up to 70%).

Asfor what to look for, you should be looking at 3yrs of figures for a business (and it should show all the revenue and the business expenses – don’t listen to the old one liner about tax!, unless you know exactly how much the business is making). Also I saw a little book in a…[Read more]

SMSF are not allowed to borrow directly, but if you set up a structure they can borrow indirectly. See a good accountant.

Rgds.
Lucifer_au

The main benefit of being retired is the time…. And with more time it is easy to do more deals. I’ve had up to 6 go through at once. Also you are working on your business rather than working for some one elses and that brings it’s own satisfaction (I hatew being told what to do).

What I do with the money? Well I’m going overseas next year…[Read more]

As always some people say easy credit is bad and others is good. I can see why the agreements about credit being bad are very valid, but had not easy credit been avalible well then I couldn’t of done all I have…. In the end it comes down to the user and their level of finacial education (and never in the history of mankind has their been so much…[Read more]

When you say partner do you mean a money partner or a J/V partner (who will take a more active role in the prperty).

Taking on a J/V partner can be good, espically if your skill sets compliment each other (one person is used to getting loans, finance and tying up land (for example) and the other is a developer), it can also reduce the work load…[Read more]

Welcome.

You actually have a great start. You can access some equity in your existing property (approx. $155K). The reason why I mention this first is because people on a low income usually say they can’t afford it (I should know – I’ve been there!). Talk to a Mortgage broker (preferably one on this forum – mainly because they arrange loans for…[Read more]