TMA
Yes, they lend on contract price. Only problem is, that’s not much use when the house is worth a lot more than the contract price. I can understand sticking to contract price when it’s just been sold, but when it’s a few years later, surely common sense suggests the house may well have changed in value. My first wrappees got stuck with that…[Read more]

It can also depend on whether or not you are seen to be in the “business” of wrapping. For example, I have many wrap houses, therefore I am a business, therefore I can spread out the Capital Gain portion.
However my sister, who sold a country property on a wrap because it was the only way she could sell it, is NOT a business because it’s a once…[Read more]

Rick’s strategies and presentation are VERY different to Steve McKnight’s. I’ve met a lot of property gurus in my time, and personally I give Rick 10/10 for genuinely walking the walk. He’s also a bit of a dag, which I rather like! But behind the dagginess there lies a brain which never ceases to amaze me, his ability to take a set of…[Read more]

Michelle
Your best way to meet wrappers is to check out the wraps association http://www.financewraps.asn.au and go to a meeting (next one scheduled for Thursday 21st July).

Keep smiling
Felicity

Michelle
You probably won’t find anybody in Melbourne using Steve’s techniques to do wraps in Melbourne. Steve likes to see the wrap repayment being the same or less than the persons’s current rent payment. Basically that’s impossible in Melbourne unless you’re subsidising them to an enormous extent. That’s why Steve and his students have…[Read more]

I have heard Rick respond to this question, Robert, and you’re correct.

Keep smiling
Felicity

The problem here seems to be – what’s the purpose of the money? From what Rick has said in the past, if the money is being used to PAY for something, such as legal costs, stamp duty, repairs, etc etc, then it’s legal to do this. However if the money is going into your own pocket – no, it’s not. I have to say that asking for $10,000 to go to…[Read more]

Robert
I have to disagree with you that the information is freely available. Maybe if you search long and hard you’ll learn it all, but most information on these types of strategies is American.
The thing I always liked about the wrap pack was the fact that it walks you through the process step by step. Step 1 – do this. Step 2 – do this. It…[Read more]

I find it interesting how many “high flyers”, when they fall from grace, seem to then collapse completely. It suggests an interesting level of connection between emotional and physical. Christopher Skase and Alan Bond are two others that come immediately to mind.

Keep smiling
Felicity

It may be helpful to mention whereabouts you are.

Keep smiling
Felicity

Investing Golden Rule #1
What are you trying to achieve?

Seriously, unless you give some information about what you would like to achieve from investing in property, then there’s really no way to recommend a strategy to achieve it.

Keep smiling
Felicity

Hi Peter
Yes, it is. It’s very frustrating if you have plans for a large portfolio!
I remember when I started out I was mainly looking for high LVR and low interest rate.
Now I think about if it’s mortgage insured and who by, what sort of deferred establishment fees there are etc etc
Funny how your focus changes!
Mind you, I’d still like higher…[Read more]

Thanks Terry, I’ll check this out.

Keep smiling
Felicity

Yes, no money down deals are possible.
Are they easy to get? Definitely not (well, not the ones that rely on working something out with the vendor!).
Most Australian vendors and their agents only know one way to sell their property, and they’re not always keen to deviate from that.
However with the recent softening of the market, you may find…[Read more]

I agree with Stu.
I constantly get frustrated by the mortgage insurance limits. With only 2 insurers, buy more than $1 million of property and your loan options (particularly if you’re self employed!) shrink to almost nothing unless you’re willing to pay double digit rates or find 30%+ deposits.

Keep smiling
Felicity

Sounds to me like lenders are going to have to start rethinking some of their legal requirements.
Have you approached them, explained the “uniqueness” of the situation and requested an exemption?

Keep smiling
Felicity

My favourite comment is:
“When I found out that McKnight (and other wrappers) were buying from agents who were clients of mine, I told the agents to make the sellers aware if the agents knew (which often they didn’t of course, because the very nature of the wrappers is not to disclose their intention).:
Apart from the fact that it’s none of the…[Read more]

I have bought a house with some vendor finance involved.
One thing to watch out for – make sure your financier is okay with it BEFORE you start trying to find a willing vendor! Certainly low doc lenders in Vic won’t touch it, but I believe with full financials you’ll have a much better chance of getting it through.
It may also be worth having a…[Read more]

The website is actually http://www.rickotton.com

Keep smiling
Felicity

I prefer to listen to people who get their facts at least reasonably right before they go spouting off opinions to the media.
I also prefer to listen to people who contribute in a positive manner to discussions to improve a situation, rather than just issuing all encompassing tirades about it.
Keep smiling
Felicity