Forum Replies Created
Hey There,
You could try asking if the vendor will fund the short fall that the bank will not fund. This way you could get the property and perhaps assign a builder that could parttake in a share of the profits if he agrees to not charge for building untill the house is onsold.
Just a couple of ideas,
Cheers,
KiwiLooking for Positive cashflow solutions?
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We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.I am negotiating one right now and it is returning 10% yeild and in monetary terms ….. $34K per annum Nett (approx)
+ it is in a great high density population area In the North Island.
They are out there in abundance…. you just need to seek and find solutions to problems.
Cheers,
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
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We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.Is it a possibility for you to live in a rented house and rent out your PPOR so that it can be +CF and interest is tax deductibleThis is not possible as if the money trail is followed (by tax department) the original intention for the loan to purchase the house for a PPOR thus no claim or deduction can be made against the loan.
However in saying that you could always check for yourself to see if this is true and fair…. a quick anomonous call to the tax department will set you right on the rulings on this one.Looking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.biz
We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.It is called PIA PRO
http://www.somersoft.com.au …. from memory
Cheers
KiwiLooking for Positive cashflow solutions?
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We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.I works everywhere …. just a matter of integrity and time to get the reputation going…. exploit your “Happily Wrapped” wrappees as Testimonials and go from there.
Looking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.biz
We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.You can have a rew strategies as fail over plans if one goes wrong then you can employ plan b then plan C and so on.
I suggest testing the market to see if there is a demand for the type of strategy you are planning to deploy. (waste of time and money if you are spending big bucks on marketing and getting no response because Today Tonight just ran a “Rubbish the Wrap” Campaign a week ago.
Most people do not worry to much about the price ( and those that do I question them to see if they have bank finance ready to go and if so how much do they have-never know it might be a quick sale outright)… so much as the affordability of the weekly amounts and how much deposit is required. There are many things you can do such as Wraps, Lease Options, Equity share agreements, Joint ventures and many more I am sure your imagination can come up with.
BEst of luck,
KiwiLooking for Positive cashflow solutions?
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Wraps-Lease Options & JV’s
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We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.I know a couple of gents doing this in WA…. PM me to get the details and I am happy to assist,
Cheers,
Kiwi.Looking for Positive cashflow solutions?
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We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.Hey There,
Say, if I got the property financed as follows: –Vendor finance $100,000
Bank loan finance $ 50,000In this case, the vendor amount is more than the bank loan. How would this affect the title?
It seems to me like a wrap situation where the title remains in the hands of the vendor until the final payment.
Now, the “silly” question….
If the above case is true and I bought the property using a wrap from the vendor…..
Can I then go ahead and wrap the wrap to another person?
I know this is stretching it… But I’m just a really curious guyI think there may be conflicting ideas here…
If I understand you correctly, the vendor is lending you 50% of the house purchase price and you are sourcing the remainder from a lender. then this is not a wrap as the bank will want the title deeds and therefore the Vendor will have to agree to lend you equity in the house and stand in line on the mortgage frontier while the bank sits in as first mortgagor giving them first rights to ghte property if something goes wrong and they call the loan. – if the above is the case you can then happily Wrap the house as it is in your name…..
However if the vendor does a vendor finance agreement with you (Installment Sales contract) then you are not able to Wrap it to another person(s) as you are not the legal owner of the home you do however have equitable title and may let or sublet if your contract terms allow you to do so.If you do a lease option you have much more flexibility and access to many exit strategies (as long as you do not wrap it-as not allowed by law).
Some of your possible strategies could be… flipping the option contract, flipping the property outright, sandwich lease option, standard lease… the list goes on
****************************
I have a couple of other things for you to consider also.1. If a vendor is financing you a portion of the property (10-95%) and the rest is being financed by a lender… then the main stream lender will nearly never agree to sitting in behind a first mortgage as that places them in a risk range they fear to tread. – See if the vendor is happy this. (just a suggestion).
2. Be sure to Factor in stamp duties, legal costs, management fees and capital gains into your buy sell spread calculations (or soft terms in your contracts) as you don’t want to go through this whole thing to just break even – as there is a lot of work ahead to get this all going smoothly.
3. The market will determine what is a good price and how much interest they will pay – as Steve Mcknight says-Problem + solution = Profits
cheers.
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.biz
We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.You could try to negotiatie with the vendor of the new purchase to carry back a second mortgage on the property for 20% ….. then try for the lenders.
Cheers,
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
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We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.Hey there,
The most value you seem to ba able to add varies from paint inside and out to kitchen renos.I have build a good nest of suppliers and manufacturers directly for things such as Carpeters, Painters and Kitchen supplies (have to go through me as they do not sell to retail clientelle) so if anyone is looking for these types of services…. get in touch with me (can assist in NSW only) – The more you save on the renovation and more return you get for your efforts.- thus you unlock more profits!
Cheers,
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.biz
We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.If you are needing to access good quality kitchens/benchtops/handles as a renovation strategy and are in NSW…. to make your buck go further let me know as I can access them with upto 50% off retail prices.
For example I did a kitchen renovation which retailed at $25,000 (value added to the home) for less than $10,000 including all stainless equipment (range hoods, ovens, cooktops, dishwashers etc.- not bad for 15 days work. – got house revalued and was shocked at the new valuation rise! – Time to sell it now and access all the cash to reinvest again.
Cheers, KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.biz
We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.Hey there,
Perhaps you could try some or these suggestions?
– Try to see what a comparable home similar to the one you are looking at placing on the land is actually selling for – be careful not to get suckered into the asking prices of sellers as we know how dreamy they can sometimes be).
– Work the numbers and see if it is a good deal.
– work out a time line project plan
– enquire atteh local council for council approval and time frames.
– make a list of all costs and get quotes on sewage, electrical and water supplies as well as piling etc.
– find out if there is a real demand in the market for this type of home-no good having a pigs ear in an area that has the keep up with the joneses type houses or as some say Macdonalds houses.
– once you have found out the above and the deal still looks good…..You could negotiate settlement on a low deposit and coincide your settment time as the same as onselling it settlement once relocation of house is complete.
or
Negotiate an option on the land for the same period or longer soas you can onsell once relocation is complete or close to it.
or
for the house itself…. you could agree to a capitalising loan for the house for say six months at an agreed interest rate (put $500 to 1,000 on it as an act of good faith)Or
Bring in the house movers as a part interested party to get the moving done as thier contribution to a joint venture and then you agree on a profit percentage split once house has on sold.There are a myriad of things that can be only limited to your imagination and willingness to just get out therer and do it.
Hope this gives you some fantastic ideas.
Cheers,
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.biz
We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.Hey there,
You can put all your protection notations and sign with deposit ($500) or less and can pull out.Spending $500 and finding something wrong with the house… reopens the sales price as you thought the home was in good condition…. you can do many things….
1. if something is wrong with the home you could leave the sales price the same and add a clause into the contract giving seller the options of either fixing it prior to settlement (pending final inspection prior to settlement) or taking the ammount out of the settlement funds to cover the repairs.
2. you can take early posession and carry the repairs out yourself meanwhile readjusting the sales price to cover the time and effort required.
3. Just get a discount and be done with it.Ther are a million things you can do to cover yourself in these types of situations.
Cheers
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.biz
We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.the software I use (PIA PRO) gives both gross and Nett Yield and also the most important to me which is IIR (internal rate of return) tells me in a flash if the deal is close to what I am looking for in less than five minutes providing I have all hte relevant information such as Insurance, Management costs, REpairs, Rates, vacancy percentage,CPI etc
Cheers,
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.biz
We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.Good advice guys (and gals).
If I could possible add some suggestions…
Look at the primary industries such as:
Power production, Farming (fruit-veg and stock) Forestry, Manufacturing, Mining, fishing.Try to look for at lease 3 or 4 different industries so that if one is affected then the whole town does not collapse (like when the steel mills were shut down in New Castle – although she has bounced back now)
Check out the last two years Local Council plans and reports (financial) see if:
1. building approvals are on the rise.
2. ANy new infrastructure has been planned or budgeted for
3. rate increases (usually due to population rise and needing more services from council such as town water supply etc.
This is just some of what you could check to get you sold on the town or not.
Cheers
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.biz
We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.AN Idea…
Have you tried to negotiate a lease option with the right to sublet? – This eliminates the need to get finance and gives you the flexibility to negotiate option fees and anything else you can think of can be thrown in to sweeten the pot a little to make it appealing from the sellers perspective.
Cheers
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
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We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.YEah,
I don’t know how many times I have had an agent call and tell me it is the deal of the century…. I just normally comes accross as real excited and start my checking processes to see if it is worth turning off The Simpsons and go and check it out or not.There is Always a deal round the corner…. agents love getting dutch auctions going as it creates demand and urgency thus driving the price of the home up…
I always walk and regroup for a few hours to see if it is really a god deal and also to see if thre was something missing in my system checks…. but most of all I get to rethink my strategy and see if I have been creative enough or not.
Regards,
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.biz
We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.Hey Fullas,
I have been in Oz for Sux years now and am proud to have Aussie Honki Fullas tease my accent!
I have heard all the crap jokes and still crack up at some of the Aussies that think they are funny with the sheep shagging jokes. All I can say is “And you lot thought you were getting lamb? where do you think we export all our used sheep when the velcro gloves wear out? Heh Heh…..
[baaa]Looking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
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We are investing in NZ so if you ar looking for + cashflow properties…contact: [email protected] to join our database.Thanks guys ….. I managed to suss it out.
http://www.realenz.co.nz
it is buried amoungst some of hte links in the site. However information is good.
Cheers
KiwiLooking for Positive cashflow solutions?
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Wraps-Lease Options & JV’s
http://www.kiwilogic.bizDepends on which legal instrument you use to secure the property…. As I understand, it is not illegal to sell a property that you own or can demonstrate that you have a financial interest in (Option or Lease Option).
However I agree With Terry here… always seek legal advice for the state/country that you live in.
Cheers,
KiwiLooking for Positive cashflow solutions?
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