Hi pasandbec

Congratulations on the new arrival.  Fantastic   While it is very understandable that security is uppermost in your mind at this pretty amazing part of your life, I'd suggest you'll get more long term secutity out of keeping your existing IP than selling it right now.

My suggestion would be to pass the full management of the IP over to a good property manager and sit back and enjoy this exciting time.  The hardest part of this suggestion will be finding a good PM but, if you ask around, you'll turn one or two up.  Good luck.

Cheers,  Paul 

Hi Guy

Usually the JV for bird dogging would be very simple.  Something along the lines of:
1.  Outline the undertaking
2.  Quantify the profit share.
There are a number of solicitors that can write these up.  Most Vendor Finance savvy solicitors are very familiar with JV's so may I suggest you do a search on this forum for a "wrap savvy solicitor" in your State.  Alternatively PM me and let me know what State your in.

We are Real Estate Vendor Financiers.  The Wrap Training Joint Ventures don't relate to bird dogging.  They are Training JV's for people interested in becoming familiar with Vendor Finance.  I don't want to be seen to be advertising so PM me if you need anything further.  Good luck.

Cheers,  Paul

Hi Rob

From my point of view it would be a real shame to lose all the good bird doggers out there that are doing a great job for us investors.

Any suggestion that bird dogging is only possible if you hold a real estate licence can easily be overcome, if you put a Joint Venture Agreement in place between you an your client.  Once you have a financial interest in the transaction you don't need the licence.

Of course, I'd suggest you talk this over with the solicitor who writes up your JV Agreements.  Good luck.

Cheers,  Paul

Hi Broony

The contract you need is an Instalment Sales Contract.  PM me and I can give you the name of a solicitor in Brisbane who is experienced in these contracts.

If you use an Instalment Sales Contract you will be regarded as supplying credit so you will have to abide by the Uniform Consumer Credit Code (UCCC).  One very good Australian software package to manage these types of loans is Loan Alert.  It can be found at:
http://www.loanalert.com.au/
Loan alert is fully UCCC compliant.  We originally used it when we started our Real Estate Vendor Finance business but now we're moving over to a specialist Vendor Finance property manager.  He also uses Loan Alert and charges us 4.5% to completely manage the loans for us.  If you don't want to do the administration yourself, this could be an option for you.  Thanks.

Cheers,  Paul
 

Hi

We operate mainly in NSW and the way we've minimised this challenge is as follows:
1.  As soon as our offer is accepted, we go back to the real estate office and sign the contract
2.  If the agent has a copy of the contract there in the office, signed by the vendor, we exchange there and then
3.  However before doing all the above, we cross out "5 days cooling off" and insert 10 or 15 days cooling off    This is usually plenty of time for us to confirm if we're going to purchase the property or not.

Cheers,  Paul

Hi Emil

We get the Wrapees to pay for all outgoings, i.e. water rates, council rates and building insurance but we'd suggest you get the bills sent to you and you pay them and get reimbursed by the Wrapees.  You certainly don't want a nasty surprise like the house burning down, only to discover the Wrapees forgot to pay the insurance.  You also need to monitor the Wrapees loan payments and record their payments into some form of software that will produce a loan statement for them, at least, every six months.

While the above doesn't sound like much, in terms of time required, it certainly adds up when you start to get numerous wrapped properties in your portfolio.

With a Wrap you are selling with an Instalment Sales Contract.  You are therefore seen to be "supplying credit" under the Uniform Consumer Credit Code and must abide by all the UCCC procedures.  This means your Instalment Sales Contract has to be compliant with the UCCC.  Also, the UCCC procedures for re-claiming the property in the event of default are quite clear.  We use the following protection to make sure we comply with the UCCC, especially at times of default, i.e. a very experienced Wrap savvy lawyer and good UCCC compliant software.

If you plan to pursue Wraps, I'd give you one more of advice; don't skimp on your education on this subject.  Good luck.

Cheers,  Paul

Hi Emil

We find demand varies.  We've sold every house we had for sale with Vendor Finance and yes, some of them did have more than one couple wanting the place.

We started by buying the properties first and then on selling them.  We now do both.  Steve, in his Wrap Kit, tends to recomend finding the people first and Rick Otton, in his Wrap Pack, suggests buying the property first.  We started out with the Wrap Pack so that was the way we went.  We now have the Wrap Kit but probably still buy properties first more than find the people first.  Most people, when starting out, tend to worry that, if they buy the property first, they'll be left stuck with it.  We definitely haven't found that to be the case.

We structure our wraps to generate around $300 per month positive cashflow.

Right from the first time we meet our buyers, we encourage them to refinance into a traditional loan as soon as possible.  We explain that they will normally be with us, depending on the available capital gain in the marketplace, two to three years.  Some Wrappers look for long  term cash flow and structure their transactions so that their wrapees stay with them as lomg as possible.  We, on the other hand, are looking for our wrapees to refinance asap so that we can get access to our backend profit and the wrapees can get back into the traditional lending system and get the title in their name.

If the solicitors get their act together you could get it done in three weeks, even less.  We always insist that our buyers get independant legal advice.

Normally Wrappers self manage their first  few wraps and then as the paperwork increases they move off to a management company.  We know of two Wrap mamagement companies in NSW.  I'm sure there are more in other states.  A lot of Wrappers use the software Loan Alert to manage their wraps.  It's UCCC compliant and generates all the statements and notices you need.  The two Wrap management companies I mentioned also use it.

If it were boom times we could probably refinance our wraapees in 12 months.  In this market we're finding that they refinance in 2.5 to 3 years.

I hope this helps.  Good luck.

Cheers,  Paul

Hi Joshua

As far as the many Vendor Financiers out there and the Vendor Finance (Wraps) Association of Australia is concerned, it's still a very viable real estate technique.  Sorry, I'm not sure what's happening with to the product.

Cheers,  Paul

Hi Angelo

If you never live in the property, can show that all your properties are simply investment properties and that you have not previously owned a PPOR, you should still be able to claim the FHOG when to purchase your first PPOR.  Good luck.

Cheers,  Paul

Hi Shane

Have a look at
http://www.maus.com/product/product.asp?loc=7.6.488

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn your negatively geared property into positive cashflow.
Phone: (02) 4984 9540

Talk to us about Wrap Training Joint Ventures.