Hi Nathan

Richard is spot on. If you would like more information on this topic, click on:
http://www.bantacs.com.au/booklets/Capital_Gains_Tax_Booklet.pdf
and scroll down to the heading, “Wraps – vendor finance arrangements”.

Good luck.

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.

Hi Pirate

Our experience is that the NRMA have a very good Landlord’s Policy.

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.

Hi James

Gee, where do I start? We made so many of them

Here are a few that really stand out. Starting out without the correct business structure. Buying at retail. buying in the wrong area. On selling without enough mark up. Not protecting ourselves from the UCCC buy doing the correct checks of our potential wrapees and ensuring these checks are kept and can be produced to prove your due dilligence, etc, etc.

Good luck.

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.

Hi Xenia

Sorry, no website. We’ll have to get around to that

Good luck.

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.

Hi James

We find that most of our clients have a combination of “challenges” that stop them getting a traditional loan, e.g. no to very little deposit as well as needing a low doc or a no doc loan.

Once you get into vendor financed real estate, you’ll be surprised at the number of potential wrapeees that contact you. Some, like traditional lenders, we chose not to work with but there are many good potential wrapees out their in the market place.

Good luck.

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.

Hi Nathan

Have a look at;
http://www.mortgageworldaustralia.com.au/calculators/amortisation_calculator2.htm
The result is a loan amortisation schedule.

Do you mind me asking why you are considering a balloon payment with your wrap transaction?

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.

Hi pwarde

Two possible ideas:
1. Find properties where the vendor is prepared to leave 20% to 30% behind in the form of a second mortgage. In this flat to declining market, it’s not that hard.
2. When Karen & I came to this point awhile back, we asked Rick Otton the same question. One of his answers was, “flap your gums” We did and now we have people coming to us requesting to become Joint Venture partners.

Good luck.

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.

Hi Ben

We always look positively upon the fact that other vendor financiers are operating in our area. This is because these other Wrappers are out there “spreading the word” and helping to make vendor financing just another way of buying your home.

Karen and I had our first wrapees move in in March 2004. We have now completed 13 vendor finance projects and have loved every minute of the ride It’s been a great learning curve and we must admit that both Rick’s Wrap Pack and Steve’s Wrap Kit have been a great help.

By sticking with it, we’re now in a situation that investors are coming to us wanting to do “turn key” joint ventures and vendor financing training joint ventures with us. A situation we would have thought of as almost unbelievable back in 2004

To give you an idea of what’s possible in a couple of years, here’s what we’re up to at the moment:
1. Just exchanged on a wrap training JV which we are just begining to market
2. Getting finance for a new wrap training JV partner for a property we already have wrapees for.
3. Just coming up to “possession day” for some new wrapees as a result of a negative2positive training JV we’re doing with a couple who want to get out from under their negatively geared IP and learn wrapping at the same time.
4. Marketing a training negative2positive JV property for a couple in a similar situation.

We bought our first wrap property towards the end of 2003 so we’ve now experienced wrapping in quite a variety of market conditions. For us, there are advantages and disadvantages in wrapping in both hot and slow/declining markets.

It’s not a perfect investment proposition but what is? For us, it’s a medium term, cashflow business that supplies money for real wealth creation, i.e. accumulating equity in property

Good luck.

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.

Hi Mitzvah

The FHOG is not available when a L/O is used. In those States where Wraps are legal (all States except SA), the FHOG grant is available when a Wrap is used (with State based variations on when it’s payable).

With a L/O you may get an uncommited “try before you buy” tenant buyer. This may mean you end up with someone in your property with a “tenant mentality”, instead of a “buyers mentality”. It’s up to you how commited you’d like your buyers to be to your property.

Arguably, with a L/O you are commited by the various Residential Tenancy Acts to be responsible for the maintenance of the property. With a Wrap, your wrapees are responsible for all maintenance. This also applies to Council Rates, Water Rates and Building Insurance. With a L/O you pay, with a Wrap they pay.

With a L/O, if the tenant buyer doesn’t excercise the Option and the Lease expires they may have to walk away with nothing. If a Wrapee “walks” the Instalment Contract is terminated and all Instalment Contracts I’ve seen indicate that the Wrapee must vacate and that all monies previously paid by them were vested (owned) by the Wrapper as soon as these monies were paid, i.e. they have no right of any refund.

Having said all this, we find that our decision to use a L/O or a Wrap, very much depends on the situation of our purchasers. Both the Wrap and the L/O are great techniques. Our suggestion would be to educate yourself on both so you can use each one appropriately.

Good luck.

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.

Hi

We started out with Rick’s Wrap Pack but we now also have Steve’s Wrap Kit. Both have been invaluable resources.

We started with Rick’s Pack, took action as per the steps outlined therein and here we are three years later having people come to us requesting to do full joint ventures, training joint ventures and negative2positive joint ventures.

Karen and I have had a wonderfull time building this vendor finance business and we don’t regret for a minute all the money we spent on our education along the way. If you’re looking to get into the vendor finance business, we’d definitely suggest that you don’t “nickel and dime” your business education.

Good luck.

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.