Forum Replies Created
Hey Maia,
You seem to be looking for a lender that will support a second mortgage (from the vendor) and complete the sales transaction with your name (or entity) on the title… – Hope I have understood your question.This is an easy one and all you need to do is hunt for an NZ broker/lender that has no issues with your servicability due to you have to service the full 100%lend from bother lenders … vender and the lender.
Banks will not have too many issues with it as they “Never Lose” if they are standing in first position on the mortgage .. then they are safe… and the jackals can have the leftovers if any if forced to sale.If you a a good credit risk … then you should not have an issue sourcing the lender with an open mind to your endeavour!
Cheers
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.comWe have 2 cars…
a 98 Hyundai Sonata that I negotiated for $2500 below market value due to a damaged rear door … as luck would have it … I found a door exactly the same and fitted complete with a cut and polish for a greand total of 80 bucks ontop of hte price I paid…. I could still sell it today and make a grand or so more than I paid ….number 2 is another bargain … a 97 Kia Mentor..
Both cars were out of the Trading post and the only things I have had to do to them is hte CV joints … os had to put on my old mechanics hat and did the job on both cars for less than 50% of the prices i have been quoted!
We have been thinking about getting rid of one to save over $4,000 per year … but have not been able to find a solution for kid pick up and wifes job rquirements … so stuck with them both at the moment,
Cheers,
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comYes I will Wrap or retn to own you into a house in NZ …. I have one in Invercargill.
http://www.trademe.co.nz/a.asp?id=59442113PM me an we can work out hte finer details if you like…..
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.comOriginally posted by mspartal:I bought the master class pack so hopefully that will explain the mechanics of all this. Im sick and tired of getting the top level theory in all these books etc without the detail of HOW? It really bugs me. All good in saying do this do that but for us beginners where is the THIS IS HOW?
Lets hope the masterclass pack fullfills this.
Cheers
Not to sure what you mean by top level theory….. It seems pretty clear to me… Find deal… crunch numbers… check condition, stability of area and rental demand, Place an offer (conditional to finance, organise finance, Buy house… then do it all again. and again and again. [strum]
Why Rent? Rent 2 own!
http://www.rent2ownaus.comHey There….
If you have a nett profit of $50K after a sale it would definately depend on a few factors.
1. how much te percentage of growth in the area you have sold
2. Do you intend to reinvest in the same location?If you are just taking the profits and running to find another deal that returns say 10.4% rental yeild …. then you could also roll over the security on your existing loan and then you only have to apply for 1 more loan (since the initial one has just rolled over). This wil save you one set of application fees but you will still wear vals and contract assignment fee fro mthe lender (usually).
Let s look at an example: (not accounting for capital gains tax to keep it simple enough
Say your initial purchase was $75K and you now sold it for $110K = $50K profit ($60K mortgage +$15K deposit + Capital gain profit of $35K)
So you have $15 tied up to secure the 60K mortgage leaving $35KYou decide to buy the house down the streeet for $110K… so you top up your exisiting morgage deposit by a further $7K to allow the loan of $88,000. The remainder $28K will allow you to purchase another property for $110K (with another 22K deposit to secure another $88K mortgage on that one. This will leave $6,000 to look after stamps and legals of approx
2 x sales conveyancing $1900 legals
1 x Stamps on the first $110K house = $2340
1 x Stamps on the second $110K house = $2340
Total = $6580
This is not accounting for the duty on the mortgages also or any fees on the second loan.
Bust is gets your very close …. as you can see.
Cheers,
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comYou could also consider Lesae options or Wraps to turn a negatively geared house around so that it puts a $ or 2 in your pocket.
Cheers,
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comBest I have done one for is a Dollar!
Had the house for 10 minutes (30 actually) and onsold the option for a $2,000 Profit ($1999 actual – Minus $5.00 gas to get hte paperwork squiggled on)
Not bad for ten Minutes aye [strum]
Why Rent? Rent 2 own!
http://www.rent2ownaus.comOriginally posted by Mortgage Hunter:This argument exists as long as this site has.
Certainly if someone would want to see how a negative gearing strategy can work then I would recomen any of Jan Somers book on the subject. Written in the 80’s they have certainly held up over time and through several cycles of the market.
Most cashflow positive adherents have yet to test their strategy through several booms – not that I am suggesting it wont work.
What would worry me more is getting advice from someone so one eyed that he believes there is only one true path out there to follow.
Simon Macks
Hey There all,
I too recommend Jans boooks … they are sitting on my shelf of learning materials and were definately a big inspiring contribution to my path.
I know at least 5 investors that have definatley made it (millionaires) through primarily positive cashflow properties… although once they were financially strong enough they balanced out some of hte port folio and did some capital gain timing solutions. All I am saying is that when you are starting out … and you wnat ot get there… the logical approach to begin is to look at positive cashflow strategies and when you are financially tough enough to weather any knocks … you can them move into the wonderful world of capital gains. If I have one eye then so be it [crying]People need to just look at thier goals and aspirations and before comitting to the next deal…. just aske themselves ” is this deal moving us toward our goals or taking us away from it?” SIMPLE!!
[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comI’m Still Buying!
Over in NZ though… good 10% + yilds and good rental demand… and if not I can use Wraps, Options or 100% financing to get them there!
Cheers
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comHi Maia,
Of Course.I have a broker who specialises in this type of financing for me in NZ … however you have to have a deal signed up before she will do any work for you (wasting time management). she will give you guidelines of what you need to complete the paperwork and rates are pretty good.
PM me and I will give you the details
Make sure you tell her I sent you and seh will give you a golden glove treatment [biggrin]
Cheers
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comWow … Have they??!
I call it hte buy and hope strategy …. just my opinion and no offence to all you successful Neg Gearers out there [biggrin]
I can’t see the logic in throwing money at something … then when I go to buy another one the figures look worse .. .and then the 3rd one … the lenders say “Sorry Sir you have servicability issues due to being overstretched” … also what if you lose your job ….. = Storm Coming… just a matter of time.
I am happy to help those out that are negatively geared and are not enjoying the “strapped to the grindstone” feeling. The ones that are successfull can probably afford to have some things go wrong … however I would not suggest it to a new starter (unless there are adicted to gambling)..
Any hoow …. just my thoughts and that is that. [strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comOriginally posted by [email protected]:I attended a meeting and also purchased a property thru them.
All I can say is do your own due diligence, check and double check the numbers.
I don’t know what they are teaching now but it was all about negatively gearing your portfolio in 2002 when we purchased our IP.
I would not buy thru them again but that is a personal choice. Our focus has changed since then and now we are actively looking for more CF positive investments.
The properties they sell are above market value that is how they make their money.
They are for real and don’t really pressure you into anything it is just another way of buying property.
Good luck.
Ros
I agree, I called them a few months ago (to see what they were about) and all I got was they were using all negatively geared property strategies and were using some tax benefits as a hook to get you aboard and saying they were all volenteers that were successful from the whole process…. When I questioned how they actually lived off the increased capital gains without having someone to go to owrk to pay for it all…. they quickly changed the subject and ended the call. Hence I did not even bother going along to see them as they did not have any other strategies other than negative gearing.
Cheers
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.comTry Changing tack…. ask them … If there was one thing could we do to make living in this house better for you while at the same time increasing the rent $10-$20/week What would it be?
Gets aways from the us and them and team bonding occurs as you are siding with them.
Simply work out what it is going to cost … and then claim it back in the tax year…. speak to your accountant and they will be able to give you the ceiling on spending to eliminate capitalisation of your expense for the upgrade. Also the tennacy agreement master document should give you a right to increase rent for improvements and also to match the average rent for that area if you are finding that you are dropping below the normal rental retrun for the area.
Speak to another property manager that knows the insides and outsides Tenant agreements… Residential is over ridden by governing law anyway … so some of your special conditions may not be able to be enforced … however you should be ableto find out what you can do to increase it…. usually is 60 – 90 days notice.
Just a thought anyway.
CheersWhy Rent? Rent 2 own!
http://www.rent2ownaus.comThey will struggle to break through a Trust with a corporate trustee… as it is NOT a person … it is a totally different entity and has different controls…. look at all the rip off merchants and how they have materminded thier escape plan…. ASIC is powerless as they do not do anything to help the poor ole community citizen… they can’t even retrive any lost funds.
Also an overstamped property will also make it difficult to take the property as it has more debt than value… so any legal searches will show no asset worth a greain of salt … and all preening for gold at the end of the rainbow will be short lived . [blush2][oink]Why Rent? Rent 2 own!
http://www.rent2ownaus.comHey all … UPDATE!!!!!
***TRANSACTION COMPLETE***
All Sorted out now. Vendor got accross the line and we got compensated for the delays.
Cheers
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.comwith a rental yeild of 10.4% and based on your worst cast scenario…..maximum price is $600K…. if you can get it less then the more cash goes into your pocket…. This should give you good positive cashflow… but you will need to crunch the numbers further to see what the internal costs are for this transaction.
Cheers,
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.comI can….
read some infor from my site….Why Rent? Rent 2 own!
http://www.rent2ownaus.comhey there,
Did you find the kitchen supplies etc you needed? I can get prefabricated units etc …. however you would have to organise travel from Sydney to Albury….. 40-50% off retail.Cheers,
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.comHey There ….
The 11 sec rule is just a yard stick (as Steve puts it) … It was never designed as the be all end all of proeprty procurement tools.
There are still many deals out there that work well within the 11 second rule … however Derek is correct … some need more creative solutions to get them cashflowing.. such as wraps, lease options upgrades to justify rental increases and many more.Trick is to try to find a hidden solution to bring hte yeild up so that you are not out of pocket … if it not by increasing hte rent .. then it could be thfrough lowering costs to get you over the line.
Cheers,
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.comHey All,
I have looked through my sales contract (NZ Transaction) and the agent must get thier commission payment from Vendor … not Buyer … however they have released the deposit to the vndors solicitor and they are trying to find out where it is.
Cheers
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.com
