Forum Replies Created
Keep saving and more importantly Keep learning!
It makes you smile when you find a deal with 40% C0CR!
With the right education that isn’t hard to find.Rgds.
Lucifer_auGlad it worked for you Scott!!
Did you do two seperate wraps (just to wring that last bit of profit out??).
Rgds.
Lucifer_auI agree with Terry! You deffinatly don’t want to go over the clients strike price, the risks are simply to great, for you and esp. for them.
Rgds.
Lucifer_auCongrats Supa Freak (ad no one will ‘can’ you for succes!). I know a few people who are wrapping homes for between $300K-$400K and it’s no surprise to me that some people are wrapping for upwards of $700K (though I would hate to have a $1Mil place sitting vacant!).
I still like blue collar homes, where the $7K still means something!
Anyone finding wraps slowing with RE slowing???
Rgds.
Lucifer_au‘3’ offer $500 worth of calls for $99, which is damn good if you live in Syd, Melbourne or Bris/GoldCoast. Also you get a damn cool phone!
Rgds.
Lucifer_auSince your just re-topping it, you would probably claim it as arepair.
Rgds.
Lucifer_auYou don’t have to lock your capital away. Simply get $10,000 (from Credit Card or even RediCredit), show the dep. that deals with this issue your bank statement and you should be fine. Or borrow it of a friend and pay a higher interest rate.
Please note: I have never wraped any property in WA, it is only what I know of the process and what others have done. Please make sure what I have suggested is legal too!
Rgds.
Lucifer_auThe 6 steps is good, but I would suggest you first get Steve McKnights book – 130 properties in 3.5 Yrs.
Rgds.
Lucifer_auIt’s not that hard to understand (well I don’t think it is).
Think of it as buying a car with finance, but instead of a car you have a house. You are the car company so you charge a higher % than you are borrowing, and you mark up the car so it’s more expensive than what it cost to make the car (or buy it 2nd hand).
And thats basically it. It gets a tad more complicated in WA than other states but basically it’s the same.
Rgds.
Lucifer_auSee above – and I’m not a mortgage broker.
Rgds.
Lucifer_auI read Australians spend 105% of their income….
“We are both 28, earning a combined income of $100000. We have a credit card debt of $5000 each and pay dead rent of $180 a week. I have $20 000 owing in HECS. We would like to invest amd have heard of people buying property off the plan and then reselling when completed and making a reasonavle profit. Is this true?”
His response:
“You have a long way to go before buying a property”.Damn right!! These people seem to be morons. They say they want to resell off the plan units – Why??? TThey already earn $100K per yr. I think these people should be focusing on CF+ properties (as how easy would it be to save for a deposit!).
Rgds.
Lucifer_auHeres an online Mortgage Calc:
http://moneymanager.smh.com.au/tools/calculators/loanrepayment.htmlHope this helps.
Rgds.
Lucifer_auL/Os are basically the same everywhere, you just have to have it drawn up so it’s more like a contract rather than a lease.
And it is not illegal to do L/Os in SA. It is however illegal to do wraps in SA (though the Gov. does them…). It is not illegal to wrap in any other state.
Rgds.
Lucifer_auI was having a look at Cashflow101 the Egame yesterday. Basically you do the same stratergy that you are mentioning (i.e. buy a small deal, sell assets, then buy a big deal).
That and your newsletter has certainly made me look beyond the dogma of never sell. Espically if you have a an asset that can bring a bigger return!
wilpro while super cannot borrow directly, you can still use your super to buy property (with borrowings!).
Rgds.
Lucifer_au” I have not find out more about the mining. From what I know, it was not the sole employment. The area is also a cattle raising area which a fair few number of people too.”
Thats like the area I was looking at, the RE agent said they had sheep and mining. What he didn’t say was that the mining company owned the sheep and used them to maintain the property (so they didn’t have to pay for the grass to be mowed!).
The sheep had no real economic value at all!!Do more research on employment. And the airport!
Rgds.
Lucifer_au“One of his recommendationsto get the highest price possible appears on Page 24 of ‘The Craft of Negotiation’ booklet produced by Neil Jenman for agents taking his courses. “The golden rule for getting the highest price is Exclude all Inclusions”. It goes on: ‘The Principle of Aces’ clearly states you must not reveal everything you are prepared to give. You need some ‘aces’ to use as concessions. “Some of the best ‘aces’ in real estate are inclusions. You can ‘trade’ inclusions for price increases from buyers. To do this, you must exclude all inclusions from your initial offer of the property.”
Some things yes (like furniture, etc), but not the basic (curtains, carpets, etc) – that just paints the seller as dishonest. I wouldn’t even buy a property from anyone if they tried to latch that little condition on to me.
Rgds.
Lucifer_auA Chattel Mortgage is a loan facility. You own the asset, but the financier takes a consideration over the asset until the contract is paid in full. With a Chattel Mortgage, you can optimise your cash flow while minimising the impact of GST, which is not payable on individual repayments, as is the case with leasing.
If your business is registered for GST, you will be able to claim the GST portion of the purchase as an input tax credit (ITC) immediately, to the extent the goods are used for creditable purposes.
Alternatively, you have the option of funding the GST portion of the invoice price as part of the loan amount and have the loan structured to allow you the ITC as a payment after the next BAS is lodged and credit received.
Hope this helps.
Rgds.
Lucifer_auThis is when companies have to report their yearly earnings to the ATO (a business year goes from June 03′ to June 04′), so if you change your business structure before that date it will affect this tax return. Anything after that date and it will affect next years tax return (June 04′ to June 05′).
Rgds.
Lucifer_auThat’s easy to say – don’t go bankrupt. But lets say I am sued and lose and a massive amount is awarded against me, what happens if I don’t have a choice but to go bankrupt. Then the assets in the trust could (if it becomes law) be open to potential creditors… Which means NO asset protection.
Also I never, ever said that “The ato arent “going after trusts”..”
” it is not an attempt to circumvent the legitimate use of trusts as a means of asset protection, wealth creation and distribution of profits to beneficiaries for property investors.”
So the Gov. says if you go bankrupt the trust asset will go into the firing line. Now I know not ever lawyer will do this, but if one targets you and tries to bankrupt you (through high legal bills from their side and them winning the case, which could ammount to massive amounts of money… Do you have a spair $100K lying around???) your assets are open. So it can be used to circumvent the asset protection of trust.
As for not being law yet… Maybe not yet, but with the Gov. controlling the lower house and the public remembering HIH & Rodney Adler – you don’t think it would make it through the senate?…
“Dont go bankrupt, and youll be fine”
Don’t get sued and you’ll be fined… In fact don’t even buy any assets and you’ll be fine…..
Rgds.
Lucifer_auI just wanted to say (along with everyone else it seems!) fantastic Calculator!
Rgds.
Lucifer_au
