Forum Replies Created
Marketing certainly is part of the deal, but I have also found the call rate lower, even from marketing strategies that previously worked much better.
Not sure where you’re based Oscar, but in Melbourne (now that the boom is over and we’re back to a “normal” market) winter is traditionally a very slow time for real estate. I guess nobody wants to shift in the rain!!
Then add in all the negative press about buying property, speculation that rates will rise again soon, etc etc – I think there’s generally a feeling that now is not the time to buy property.
So the general market is slow, and it’s hardly surprising if the wrap market has slowed too.
Having said that, there may be less enquiries, but the ones I’m getting are better “quality”, so in the end I’m not sure that it’s all bad.Keep smiling
Felicity
In the end, if someone is willing to pay the price you’ve put on a house, that’s their choice. I don’t think it should be mandatory to reveal your purchase price if you choose not to.
HOWEVER… they should always be given the opportunity to make comparisons without any undue pressure and seek legal advice. And that’s where I think this wrapper crossed the line – any time you exert pressure, put people in a situation where they can’t make comparisons (talk to some 2nd tier marketers on this one!!) etc. you’re acting without integrity.
If the deal is fair enough, it should stack up without any need for deception.Keep smiling
FelicityI agree with you Mini, there’s no way I’d manage my properties myself. What if you want to buy in a cashflow positive area that’s interstate? I agree it can be hard to find good ones, but the good ones are gold.
Plus I’d be a sucker for every hard luck story of why my tenants can’t pay the rent this week….! No thanks, let the professionals do it.Keep smiling
FelicityA couple of points (based on experience!)
If you want someone to leave money in the deal, then I would almost overwhelmingly suggest you need to pay a better price to do it. They’ve got to see that they’re gaining something too. Asking for a lower price and terms convenient to you is probably not going to work. But hey, you never know!
Also, the main problem I struck with all this was lenders. I was borrowing lo doc, and the second they saw that vendors were leaving money in as a second mortgage, finance was impossible. I didn’t find a single lo doc lender willing to do it. Unfortunately I can’t borrow full doc at the moment, so I basically had to give up at that point.
I’m sure it can be done though! I’d certainly recommend that you shop around for a lender who will do it before you go too much further.Keep smiling
FelicityDelboy
I said you could borrow against another property to supply deposit funds, not as security for the wrap loan.
Dave has explained it better.Keep smiling
FelicityHi Delboy
You can borrow against another property to supply funds for a deposit, but you cannot cross-collateralise a wrap property with any others. You also can’t refinance the property once it has been wrapped. This includes bringing in an investor for a 2nd mortgage – once it’s wrapped in Victoria, nothing can change basically.
This also creates problems if you buy in a company/trust structure and the bank wants to take a debenture mortgage over the structure – again, that’s basically cross-collateralising.
The purpose of all this is to make sure that when the time comes from the wrap buyer to refinance, the wrapper can’t have increased his/her loans to the point that the buyers loan balance can’t pay them out (ie the wrapper’s loan is higher than the wrap buyer’s loan).Keep smiling
FelicityHi Terry
I’d recommend you spend some time in the Getting Creative forum. You’ll probably get a better response if you post this message there too.Keep smiling
FelicityGoing 80/20 doesn’t always avoid LMI. Quite a lot of banks will still have the loan mortgage insured, even though they don’t charge the premium on to you. So be very careful of that.
Keep smiling
FelicityThey’re my initials Salubrious
Keep smiling
FelicityHi Slum Lord
It varies I believe, I dont always get there myself! Usually around 20, has ballooned to as high as 50 for speakers.Keep smiling
FelicitySalubrious
Kay’s articles only referred to Qld, I guess that means they could still be operating elsewhere in Australia.Keep smiling
FelicityI was about to email admin and ask if I could advertise this, but I guess I don’t need to now!
I certainly plan to be there.
This sort of information is crucial – and I agree that Lewis is one of the best there is on this subject.Keep smiling
FelicityI’m sure the fact that most of his targest are his competitors makes it a little easier too.
Keep smiling
FelicityGood luck!
Keep smiling
FelicitySorry skippygirl, that’s what happens when I scan a thread fast because I have to get my son to school…
Keep smiling
FelicityPerhaps the lady could sell the house to you with vendor finance. Essentially she would allow you to pay it off over a period of time (say 20 years) with no interest on the payments. This means that your payments to her are capital repayments on the sale of an asset, and not income (like rent).
Keep smiling
FelicityI also found Peter Spann’s intro night invaluable. It was there that I first started to get an understanding of share options. I went on to learn heaps more about it, and made reasonable money from options for a while. I’m a bit busy with properties right now, but I still use some of his other information when I’m looking at shares for my SMSF.
The thing that always stood out for me with Peter Spann was that he was the only “guru” I’d come across at that stage who actually advocated BOTH property and shares, he had a very rounded view of investing. Since then I think I’ve only really added Steve Navra to that list, most gurus stick to one or the other.Keep smiling
FelicityGatsby
I suggest you link into the ninemsn/Somersoft meetings, they’re held once a month and involve a reasonable group of property investors doing all sorts of interesting things.
I don’t have the date of the next one, but I will post it in here when I have the information.Keep smiling
FelicityKeep smiling
Felicitysedraash
My feeling is that you should always educate yourself about the property market first, then once you know what direction you want to take, learn everything you can from an expert in that niche.
I started in wraps with Rick’s Wrap Pack, did 4 wraps, then went to a Wrap Camp. I look at where I am now, and know there’s no way I’d be anywhere like I am without spending the money on learning from Rick.
It’s been worth every cent I’ve spent (and yes, I’m going to Wrap Camp again in September, wouldn’t miss it!).Keep smiling
Felicity
