Forum Replies Created
That is fine… I am sure you have a profitable business as a real estate agent.
moving right along…. there are thousands of agents out there and I have built ongoing business relationships with a lot from remaining loyal and giving them re-occuring business.If they are making a dollar managing the day to day property management services and I am making a dollar and not spending the time mucking about with the day to day stuff… I am free to find other properties and build more contacts and clients.
NEXT!It is all about integrity my co investors…
I do not let any person sign a contract without there own solicitor…. If they are not able to ‘afford’ one…. then they are not ready to own a home as it is one of the biggest moves they have ever generally made & solicitor costs are very minimal in comparison.I do not wish to ever end up on Today tonight with a toothless wonder saying I stiffed em and we should never have ever let em into a house. – I plan on being here a long time not after the quick buck and am building my name on integrity and reliability (as a transaction engineer)
I do not place porpors into my wrap homes as they would never work out anyway.
My ethics prevent me from taking money from someone I do not think will be able to afford or cope with the repayments.Originally posted by The Mortgage Adviser:Kiwi,
Out of interest, how many properties do you own and how many do you control under lease options?
Robert,
What is the point of the question??? to get me to prove my credibility perhaps….. I would have thought other readers would ascertain whether I am full of it or not by what ideas and contribution content I provide freely.
Put it this way… I am not going to write a book on the subject as it has already been thrashed to peices. I would rather just quietly get to where I need to go without the fame factor tainting my senses.
Cheers,
Kiwi
[baaa]I have never heard such a thing.
If they had of had a solitior acting on thier behalf … none of this would have happened (at leaset they would have been made aware of the issues.[baaa]
my contracts allow fair and reasonable terms… 30days late and a late payment notice is served, penalty interest is payable after 14 days…. and if not resolvable then I can rescind contract… I have sometimes let people just rent instead for 12 months and they can recommence installments without wearing a penalty… depends on how soft or firm the market is I guess.
Cheers,
Kiwi
[baaa]I just work on educating them and offer to pay 0.25% of sales price and remaining 1.25% if option is excercised. (of course the 1.25% is paid buy the vendor as a condition of the sale. also just give the agent the management percentage… once they realise that this is an ongoing relationship… they come around. – But that is just one of my strategies.
why not throw away $35.00 and run an add looking for a dentist to fill the proeprty…. if you get no response…. then you may have an issue filling it when lease comes up…. if you get lots of response… you can then find one that will agree to longer term (3 years) and once you have this sorted out … Serve the Sucker!-the old dentist…
I did the same as IQ and now most of my transactions are done to the verbal agreement over the phone as I know my areas very well. I get agent that contact me all thetime with the deal of the century …. and usually after a few minutes over the phone I can work out if I am gong to bother getting out of my seat and even look at the property. Sometimes I do not even go an dlook at the property as I know the building report and pests will give me a good indication of hte condition…. if it comes up with alarm bells in any way I call and chat withthe inspectors I have used and then decide whehter I wish to negotiate better terms with the new information… or just drop the deal… after all what is $1K if you are saving making a big financial mistake…. – I don’t suggest trying this at home folks until you have good gut feel for what you are doing here.
Cheers and good hunting,
Kiwi
[baaa]Hey there,
Just a suggestion:
Sometimes it is better to crawl before you walk. Once you have learnt and tested your investing system then you can reproduce your machine in other countries. I would need to go accross the ditch to source all of the relevant information and market research prior to parting with hard earnt cash.This way you can build contacts directly with agents and also source your own properties that may not be advertised through the normal agency channels.
Best of luck
Kiwi
[baaa]Hey there,
Depends whether you want:positive gearing = makes money after tax considerations and taken into account… or
positive cashflow = puts money in your pocket prior to any tax considerations at all.
I secure positive cashflow props in Metro without a problem. – you do need to know what you are doing to do this though.
Cheers,
Kiwi
[baaa]Originally posted by FireCaesar:Thanks for the contributions (Terry & Robert).
Steve, do you mind talking more about this “investing system that identifies solutions to a range of problems”? I don’t quite ‘catch the ball’.
I believe Steve is reffering to building a business system that does the complete A – Z on property transactions:
-Sourcing and testing opportunities processes
– Sourcing funds and private investors
– Negotiating terms instead of needing investors
– paperwork and contracts
– advertising for buyers and sellers
ETC ETC ETC…..
If people can plug into a system that you have in place… then you increase your chance of success and spread the risk.Hey thanks for the constructive response…. at least I am trying to come up with a solution… what are you trying to do apart from rubbish other opinions or ideas (that I really care anyway)?
Sure….I have based my figures on theoretical assumptions … but I am sure if the real figures were known I could sort out a transaction that works for all… and on the fly while sitting down in front of her… what could you do apart from try to strip down the poppies trying to rise above the rest?
Everybody knows that there are other tools out there….
What is your solution? more debt?
I would not waste time give 4 obvious solutions that could be made here… I guess the point is you only get one shot at securing the transaction and if you do not have a solid strategy… then you could blow your credibility by either fumbling though some hair brained solution that you have not fully thought out prior to the meeting…. or you will run the risk of confusing the heck out of the vendor and they will never go for your solution … because it just does not make sense… stick to the KISS method and you increase your success rate. – hey why not give it a go?
Cheers,
Kiwi
[baaa]Solution?
HOw about this:
A) Lease OPtion:
****************
1. Offer the owner $5K (as a lease option fee= $18,000 strike price) to relocate. – Comes off the price of course if option is excercised .2. Pay $60/week to her to look after her outstanding mortgage.(estimated cost to her is $26/week based on 16K@7% on 25yr term)
3. Of the $60/week, $40/week comes of the house price for 12 Months.
4. spend $5K on repairs.
5. increase rent to $80/week for new tennants.
6. Set up so that in year 2,3 & 4… full $60/week comes off house price
Pros:
– No Stamps
– Assisting owner to get to where they need to go
– No mortgage required
– New tennant happy as place is clean and functioning.
– Paying $3,120 off property in 12 months interest free if Option is excersized.
– $1,040 (@$20.00/week excess) income derived from property in year one.
– Property paid off in 2.9 Years
– Claim losses VIA tax return.Not so hot considerations:
– $10,000 cash outlay initially for 2.9 years.Food for thought anyway.
Cheers,
Kiwi[baaa]hmmm interesting how not reading terms of the contract can make someone mad with oneself and yet lay blame on others.
If you had a half solicitor then they should have disclosed all that had not been in the interest of the Vendor to do so.
Business is business. Sometimes from time to time, as hard as it is …. we all have to take responsibility for our errors, dust off and get back in the saddle for another nail biting ride to the next challenging hurdle life has to throw at us all.
Good luck with sorting it all out
Cheers
Kiwi
[baaa]Originally posted by resiwealth:Just go and find some really desperate and broke Australians (not hard to do)then screw them for an interest rate above what you are paying the bank and hope that the interest rates don’t go up.
Like you sense of humour! [biggrin]
It is not uncommon to offer interest rates of 3% to a wrap buyer… and sell for same price that you purchased property. It is not in the selling it is all in the buying and or terms for buying that is the key. -humble thought from Kiwi
[baaa]Robert,
I conceed your point – I am meerly trying to demonstrate that you would not need to go there if you have your plans in place ready for the day of default (hoping that it is never going to happen of course).EG> you have bought the property at a good enough discount so that if you need to get out fast…. you can sell or flip at the drop of a hat….. or you have set up a LOC or Redraw facility to give you the time to cover all of your losses and make up the payments that your wrappee is defaulting on.
REMEMBER WHEN THE RAIN STARTS THE LENDERS WILL TAKE AWAY YOUR UMBRELLA… you do not want to be in a position that you have to access funds at 15-30% just because you thought it would never happen.Best of luck all.
Kiwi
[baaa]Ha Ha…. Yur Frind in the Frudge! -MainLAND CHEESE [biggrin]
[baaa]Fantastic [biggrin]
I think we are all clear now as argument has been made from each side with amicable results.I generally do not get into a transaction if it is not putting cash in my pocket today! (unless balancing my portfolio of course). You never know what the local or national government bodies are brewing up to make the average investors life that little bit harder….
I guess it is just as well we are not all AVERAGE investors then isn’t it?!
Cheers
Kiwi
[baaa]Originally posted by The Mortgage Adviser:Kiwi, a few things…
Foreclosure is an American thing, not Australian. As to why a wrapper would default, if they were struggling to make payments, they may default. As to coming up on the radar, you cannot list them with Baycorp Advantage so that won’t happen either. You would have to sue them for any defaults.
Robert Bou-Hamdan
Hi Robert….. It seems you enjoy a good banter….
1. Perhaps my phrasing is different, whatever you would like to call it when a lender forces a sale/mortgagee auction according to contractual subclauses in mortgage documents to a defaulting mortgagee… I call it foreclosure as it is something that we all inderstand
( I have attended a mortgagee sale/auction once or twice).2. House would be risked only if the “wrappee” is not making the payments as they are paying directly into the account responsible for the mortgage…. so if the “wrappee” is defaulting then I am going to be taking action to resolve issue and quite obviously would have a “PLAN B” to recover from such a challenge.- think of the worse case scenario and work out at least 3 plans of action to resolve or exit the transaction… I think they call it hedging in the share game?
3.If a lender has any unresolvable financial challenges with a non payer…. in most cases thay will list a default on Baycorp….. also when you apply for any mortgages… one of the things you must do is show bank statements to show any issues at all. Some lenders will place a mark on the baycorp … then will issue a resolution mark once all proceeds have been resolved from the sale of the asset-or cut thier losses. However there would be a time where any lender (Wrapper) will see this on any credit checking system such as Baycorp.
Cheers,
Kiwi[baaa]Originally posted by The Mortgage Adviser:You are leasing a property for the purpose of receiving an income. This makes it deductible.
Robert Bou-Hamdan
Hi Robert.
Perhaps I have missed your point…. If you are receiving rent that exceeds the rent that you are required to pay… and not paying rates…landlord insurance…water (not excess water)…. how can you deduct anything? it is pure profit and must be declared as income……Thanks,
Kiwi
[baaa]Fantastic Ideas everyone… what if you took a lease option on the mobile home? this way you do not have to deal with the lenders at all.
1. You could negotiate some equity into the deal with each payment.
2. You would have more to offer a lender if your venure included a cashflowing business venture… and a solid long term lease that you have tied a potential purchaser to.On the other side of the coin you will not get any capital gain as there is no land so could be risky also…. but hey people buy do dads all the time and never complain about the cars they paid $49,000 on 2 years ago and it is now worth $15,000! – make sure you research the depreciation of this item … at the end of the day …. if you wnat cashflow then you could be on a winner…(BECOME THE BANK) if you want capital gain…. then DO NOT GET INTO THIS TRANSACTION….. my humble opinion.
Good luck with your decision
Cheers,
Kiwi
[baaa]
