resiwealth
You obviously don’t know much about wraps. I recently did one with a rate lower than my bank rate, and sold the house at market value.
My buyers weren’t broke, they simply had jobs that banks and other lenders don’t like much, and a small deposit.
They were absolutely over the moon to be able to buy their own home for them and their…[Read more]

A good starting place would be to spend some time reading the Getting Creative forum, and also some of the archived material.

Keep smiling
Felicity

Jen
I have wrapped a house in a similar situation.
I have never anticipated that they would be refinancing quickly, I always expected they will be a long term cashflow buyer. So far that has been true.
There’s been some good equity growth in their house though, and I have certainly referred them to a broker to discuss their options (including the…[Read more]

A bit of both!
Funnily enough, no matter how they start, I still seem to end up with both. I had one couple who looked likely to refinance quickly go bankrupt, so they’ve turned into long term cashflow buyers.
Mostly, though, I do aim to put in people who are likely to be in a position to refinance reasonably quickly, and then I see what…[Read more]

I remember a couple of years ago I went to a meeting of the Technical Traders Assn (shares) and after the meeting most of the people went to dinner.
I sat at a table of 12 people – 2 GReeks, 3 Italians, 2 Asians, 2 Indians, 3 Anglo-Saxon. We had a fabulous time, and at one point I actually sat there and felt proud to be Australian. Nobody had…[Read more]

I do have a clause in the contract that allows me to oncharge any early repayment fees from my lender… just noticed that point in Terry’s post.
Again, though, it’s my choice whether to charge it or not.

Keep smiling
Felicity

Remember, too, that if something is in your contract, you have the option whether or not to apply it.
For example, if you have a few people who could refinance but aren’t moving on, you could send them a Christmas Special! letter, saying you’ll waive the early repayment fees for anyone who refinances before Christmas….

Keep smiling
Felicity

Good advice, and I always tell new brokers / banks that my CRA is extremely busy, but clean. I then show them a list of properties as justification.
I should also point out that many banks now put an entry on your credit if you go guarantor too.
Quoting from my own credit check…
“XXX made on enquiry on date in reference to an application for a…[Read more]

Personally I would be happier if API would be a little more creative with their subject matter, although not necessarily negative.
I’m getting a little bit tired of reading the “same” profiles over and over, it sometimes seems only the names and locations of the properties change.
But I’m aware that editorial policy isn’t particularly…[Read more]

You could also ask the vendor to leave the deposit in the deal as a second mortgage (called vendor finance). Make sure your lender is okay with this first though.

Keep smiling
Felicity

TerryW
Depends which lawyer you consult!
There’s a couple of interpretations of the act.
Certainly I think that it’s always imperative to keep your loan lower than the wrap loan, and preferably with a serious buffer inbetween.
My lawyer’s view is that IO loans are not specifically banned (they didn’t exist when the law was drawn up) so therefore…[Read more]

Hi hardrain
I need to go and organise breakfast for the kids, but I’ll at least answer a couple of your concerns. I have done a lot of wraps, and think they’re brilliant! However at some point the people pay you out and you lost the asset, so down the track you need to consider more long term assets too. Wraps are mainly about cashflow.

“so if…[Read more]

Well, I’m in the process of removing a defaulter now, and believe me, the SRO is going to know he didn’t complete!!!
Particularly as the FHOG was supposed to be his deposit, he kept stalling me about it, and I found out later he received it (changed the paperwork so he got it by cheque instead of it going into my bank account) and he still says he…[Read more]

I’ve had the Cashflow 101 EGame for a while, and love it!
I’ve just bought 202 (well, hubby gave it to me for my brthday hehehe) so hopefully that’s just as good. I also got the CAshflow for Kids E Game, and both my kids (3 and 7) have played it and found it fun.
The good thing about the E Games is you can play by yourself!!

Keep smiling
Felicity

In Victoria, as part of the application, the buyers have to sign a statement which says that in the event they don’t complete the contract, the FHOG is repayable. The onus is on them to notify the SRO if they don’t complete.
Whether or not the SRO would chase them for repayment, who knows!

Keep smiling
Felicity

I think that information can be extremely valuable, if you are selective about what you pay for, and take action on the information.
There are certainly some shonky people out there, that’s life. But I know that after reading lots of books, going to plenty of free (or $50) information nights for various speakers etc, I finally decided I wanted to…[Read more]

It’s worth looking on the “getting Creative” forum, there are a number of threads to do with this.
You can try Danielle at http://www.avibe.com.au they do full disclosure finance.

Keep smiling
Felicity

Most of the time I don’t even KNOW I’ve got buy and holds until the rent comes in. The agent takes care of everything. Makes my life much easier!

Keep smiling
Felicity

Hi Steve
Well, I admit it – I’ve had that Dr Seuss book for quite a while, and frequently read it to my kids as a bedtime story. It’s one of my favourites!
So yes, I think Dr Seuss was very wise. But Steve’s delivery of the story was excellent too, obviously getting into practice for reading bedtime stories to his little one. hehehe

Keep…[Read more]

Mike
Whereabouts are you? That would be helpful!

Keep smiling
Felicity