Hi Batts

We took a big leap of faith and moved the family from a cushie expat lifestyle, back to OZ in early 2003, after buying Rick’s Wrap Pack. We attended Rick’s Camp in March 2003 and haven’t looked back since.

To say the least, it has been very profitable but what has also been great is the relationships we’ve built with the people we’ve helped into their own homes. I know it’s an over used term but the win – win nature of this business is a great plus.

We have also used Steve’s Wrap Kit and we feel you will get excellent education no matter whether you pick Rick or Steve as your teacher.

I would also suggest that you don’t pay out these large sums of money unless you absolutely commit to real action on completion of the courses you choose. Too many people spend too much money and end up doing nothing because of analysis paralysis or whatever.

Good luck.

Cheers, Paul

Hi Rich

I found Steve’s Wealth Guardian absolutely invaluable in getting my head around various business structures. Have a look at:
https://www.propertyinvesting.com/resources/11.html

Cheers, Paul

Hi David

Have a look at:
https://www.propertyinvesting.com/strategies/lease-options.html

https://www.propertyinvesting.com/strategies/wraps.html

http://www.businesslawyer.com.au/fr_property.html

These links should help a bit with your research.

Cheers, Paul

Hi Dr X

If I was structuring this deal, I’d set it up as follows:
1. Option price (strike price) – $245,500
2. Weekly rent- $386.50
3. Option fee – $7,400 (to be added to the deposit)
4. Rent credit – $50 per week
5. Option term – 5 years

Based on the cost of my borrowings ($209,000), the weekly rent would leave me with a positive cashflow of $300 per month. However out of this $300, I’d have to be paying maintenance, rates and insurance.

Hopefully the tenant buyers would save well during the 5 years of the option or, alternatively, they could increase their weekly payments and these extra payments would be 100% rent credit.

If this is not possible we would ensure that the wording of the option document allowed for sufficient extensions so that enough rent credit can be accurred to eventually allow the tenant buyers to purchase the property.

Just one of the infinite number of ways of doing it

Cheers, Paul

Hi All

Just a quick comment on the idea of writing maintenance, etc responsibilities into the option document, in an effort to try to get around a landlords responsibilities under the Residential Tenancies Act.

I too had this idea. However when I put this idea to arguably the most experienced vendor finance lawyer in Australia (in NSW) he let me know very clearly that a court would most likely judge these actions as an attempt to avoid the provisions of the Residential Tenancies Act and that the penalties for these actions can be substantial.

As I mentioned previously, just estimate your maintenance, rates and insurance costs per week and add it to the rent. It not perfect but it is legal

Cheers, Paul

Hi coast2coast

Welcome to the forum and good luck.

When your wrapees first move into the property they probably owe you the purchase price, less the deposit they’ve paid you. You then set up some form of software to monitor their loan to you. Whenever they decide to refinance or buy you out, you simply go to your software and see what they owe you at that point. This figure, plus any early discharge fees you may have in your contract with them (usually none this far down the road) is what they pay you to complete the contract.

I hope this helps.

Cheers, Paul

Hi Richard

We’ve found the small classified ad to be our best form of advertising for our market (mainly homes in the $200K to $300K range). We continue to place all the properties we want to sell, via vendor finance, on at least 3 websites but in 18 months and 6 houses, we haven’t had an enquiry from any of the websites.

Websites might get a better result for a different demographic, e.g. inner city apartments but that’s just a guess.

Cheers, Paul

Hi Kendo

I think if I were to give you an answer here, I’d just miss too much important information. To answer this question properly, I’d recomend you get an educational resource like Steve’s “Wealth Guardian”. I found it to be a great resource for my initial education into understanding and using the various business structures that are “out there”.

I’m sure others on this forum will have alternative educational resources they too can recomend on the subject.

Cheers, Paul

Hi Maruco

I operate in NSw but I believe the Residential Tenancies Act in NSW and Qld are pretty similar.

If you try to off load the maintenance responsibilities of a residential property, onto the tennant, you will be probably be found to be in breach of the Residential Tenancies Act, if you are taken to court or the Residential Tennancies Tribunal. This breach can, of course, put you in hot water to say the least.

My advice, for what it’s worth, is don’t try it. Instead work out a figure you think will cover maintenance for the period of the lease and add it to the rent. It’s not exact but I think it’s about the best you can do with a lease option.

I hope this helps.

Cheers, Paul

Hi gilad

Correct me if I’m wrong but are you sure you’re not getting “residency” and “citizenship” mixed up together. From the length of time your friend has spent in Australia, it seems unlikely that she does not have Australian “residency”. And like a lot of “permanent residents” in Australia she may not have Australian citizenship.

If your friends have Australian residency, the following quote from the government website, http://www.firsthome.gov.au/ might help:

“Eligible applicants must be natural persons, who are Australian citizens or permanent residents, who are buying or building their first home in Australia.”

I hope this helps.

Cheers, Paul