Rob
Obviously my last post wasn’t clear enough – wraps were NEVER mentioned in the initial stages of searching for finance. We never got anywhere, so never bothered!
I spoke to a number of lenders myself, and basically it seemed to be a Victorian thing, caused perhaps by some less than ethical seminar presenters who taught people to inflate the…[Read more]

Sounds like a question for your accountant Alistair! I have no idea, sorry…

Keep smiling
Felicity

Rob
Wraps had nothing to do with it – at the time my broker and I were searching for 80% LVR lo doc finance, we were purely looking for someone who would do it with the vendor financing 20%. The best we had was an offer of 64% LVR (ie 80% of the 80%). Basically they were taking the 20% vendor finance off the price of the house, because they…[Read more]

Rick hasn’t been “in charge” of the VFA for nearly 2 years now. It was certainly a lot more active and involved as an association in that time. It did okay in the first year after he ceased his involvement, but since the second change of leadership it’s almost disappeared off the map. Hardly a ringing endorsement for the association being run…[Read more]

In my experience, vendor finance is possible if you’re using standard finance. But certainly in Victoria, the lo doc lenders are EXTREMELY nervous about it! I had more than 15 lo doc lenders knock the deal back (or only offer to lend 80% LVR of 80% of the purchase price) because of vendor finance.
I’m not sure if the same is true in other…[Read more]

Rob
Rick Otton has a lease options pack, perhaps that would be the best way for you to go. You’ll find it at http://www.rickotton.com

Keep smiling
Felicity

Oldtimer
I have always looked at wraps as a cashflow business, and that’s it. That strong positive cashflow is the reason I have been able to buy as many houses as I have – we’d already been stopped at around 4 with normal rentals (and yes, they were positive cashflow, but only a small amount each). It’s also the reason my husband doesn’t need a…[Read more]

A misguided belief that it might actually do some good? A hope that maybe for once something positive might come out of it? Perhaps to avoid that whole “xxx declined to comment” line that current affairs shows love to use, to put the person who declined to be interviewed in a bad light.

Keep smiling
Felicity

As far as I’m aware, Rick wasn’t given any questions in advance. He was also given the impression that he was going to be given the opportunity to present his side of the story in a fair, balanced manner. That all went out the window as soon as the interviewer opened his/her mouth.
I also don’t agree that Rick didn’t know how to answer the…[Read more]

I don’t know why he chose not to answer the question about the cost of the course – possibly because it would then have been a case of well, x people are there at $x a head, which equals $XX? There are all sorts of course prices, depending on whether you take your partner, or are a returning graduate etc.
I’d have to go back and reread the bit…[Read more]

Thanks for the kind words Wayne.
I’m sure my turn will come to be on the receiving end. I’ve copped that sort of stuff before, and probably will again.
Yes, it’s upsetting to be accused of stuff that’s nothing like what I actually do, and I’m sure there are people in other lines of business who feel the same way (used car salesmen? hehe).
In the…[Read more]

You’ll need to mention which state you’re from.

Keep smiling
Felicity

As far as I am aware, you cannot claim the FHOG on a lease option, as you are not in the process of buying the house until you exercise the option.
With an instalment contract, the position varies from state to state. Some, such as Victoria, allow you to claim the FHOG straight away, as long as you sign a form stating that in the event you don’t…[Read more]

Hi Robert
I remember talking to Rick about that interview. Apparently the interviewer walked in the door and the first comment made was along the lines of “I am going to screw you and your organisation big time”. Hardly the way to relax Rick or make him feel warm and fuzzy.
Rick was very distressed about the interview, he spent all his time…[Read more]

I usually find the house and then the buyer, so haven’t done many in the way you’re describing. However I have done a couple where an agent approached me about a house for sale where the renters wanted to buy. In those scenarios I sat down and worked out the figures and then told them – this is how it’s going to work. Both times the families…[Read more]

I’m going by memory here…
When I went to Rick Otton’s Lease Options day, he talked about this. He said that basically, the bond is required to protect the LANDLORD in the event of default, tenants doing a runner etc. So in fact you don’t need to collect a bond at all. This is usually much simpler than trying to follow all the correct…[Read more]

No, Melbourne.

Keep smiling
Felicity

fjficm
Thanks! [blush2][blush2]
I think I’ll leave it to the experts.

Keep smiling
Felicity

Robert
In my contracts, if there is equity available when a default occurs, then under the default clause the property must be valued first. Then, either I can choose to pay the equity to the buyer (upon them removing their caveat of course!) or the property must be sold and the equity paid from the proceeds.
You wouldn’t get a situation with…[Read more]

Robert
You obviously haven’t seen one drawn up by Lewis O’Brien then – all those things are included in my contracts.
Possibly the only difference is that my contract discloses the amount of interest paid over the whole life of the loan, not 7 years, I will query that.

Keep smiling
Felicity