Hi,

Terry – send me an email with the booklet you are missing and I will print you off a master and send it to you.

Now – some comments about wraps.

First up, the notion of doing a P&I loan repayment is an indirect necessity in Vic due to the wording of the legistlation. More so though, it is good practice as you are reducing your loan.

One of the criticisms of vendor finance is the risk that should the vendor spend the cash (and not apply it off the loan) then there is the possibility that the purchaser thinks they are paying down the loan when they are not.

On settlement, they find that the 1st mortgage remains.

Really, the difference b/w I/O and P&I is peanuts in the scheme of things, so I would always push for doing that as I regard it as best practice.

Paul is right in saying that the UCCC applies. A while ago they were going to legislate that it specifically applied to VF sales, because at the time the law stated that you needed to be in the business of VF in order for the UCCC to apply.

Therefore, make sure that you follow the requirements of the UCCC to the letter.

I have heard of investors being sued for breaches, and the penalites are significant.

Be sure to gain proper legal advice and not just rely on any product you buy (mine or anyone elses).

When it comes time to sell before the final payment (at which point title transfers to the name of the purchaser), the purchaser will be able to do this pursuant to the terms of the contract.

The contract I used outlined that we would sell the property, pay ourselves out, and distribute the net proceeds to them.

That is, they had the right to sell, but they had to do it through us (i.e. with our consent) as the title was still in our name.

It was never a problem though – they picked the agent and managed the sale, however the proceeds came to our solicitor who then divided up the settlement funds as needed.

I hope this has helped.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Derek is right, the forum order was switched last night.

It may sometimes take a while to action, but we do listen to the feedback.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi Terry,

I used to do a lot of HR, and prior to R/E had an interest in incentive programs and the like.

I found that while money motivates, it only does so temporarily. Issues about feeling valued, belonging, recognition, challenging work, even self-esteem were higher long-term priorities.

Naturally, the issue of pay is a major factor.

As far as an incentive scheme goes though, let’s look at Henry Kaye as an example. From what I saw, his organisation fed off commissions from people who signed on for his courses.

It seemed that he had an army of people out their bringing people through the door. They must have been enrolled in his spiel, as I have heard of lawyers and other professionals leaving jobs to earn bigger dollars.

I suspect that whatever the scheme is, for it to be effective it must be realistic, achievable, and have others benefit from it. It must also be equitable or else people will give up.

I have seen plenty of schemes come and go on the basis that the program was a good idea but did not motivate staff as it missed the mark.

I guess that overall, not everyone is motivated by money, and those that are will only stay until a better paying opportunity presents.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi NellandTony,

Thanks for your post.

I have a couple of points to make…

1. Are you buying the house next door for an investment, or as something you may want to extend on in the future? If it is an investment, then it is a matter of return and maximising your money. If it is a lifestyle decision, then that is different and it comes down to affordability.

2. Whatever the decision, the two areas that you should check out thoroughly are:

> The physical property: What condition is it in, especially in the area where you can’t easily see (electrical, plumbing, floor, stumps, roof). I suggest you pay an inspector to do this for you.

> The numbers: You have to be aware of the financial implications of your decision. The four questions are: how much down, how much back, how much time and how much risk.

3. If you are investing, what is your plan or strategy for the property? That is, how are you going to make money?

As for buying privately, I can’t see the issue here, provided you can negotiate price and or sale terms that meet your requirements. I would say that someone who sells privately usually does so to save a few $$$$, so, you may find it difficult to negotiate on price.

Still, no harm in trying [exhappy]

Let me know how you get on.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Just a quick comment about the pursuit of wealth creation… bring it back to what Jesus said, in that you can only serve one master.

If money is your master then you have the wrong focus, as it is an idol. God wants to be #1.

There is nothing wrong with seeking to acquire wealth, indeed, many of those featured in the bible were wealthy – from David right the way through those who supported the early missions (as written in the book of Acts).

Search your heart, pray for wisdom, and ask God to show you what you are doing wrong.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Yes, I have seen it as a friend lent it to me to watch.

For the main part it contained some very interesting ideas, and some alternative ways to view things.

Where I thought it fell over was with the woman who looked liked Zsa Zsa Gabor. In the end credits, her qualifications was that she ran her own elightenment school, or something. Oh, Please!!!

For me, I have a strong Christian faith, so I don’t subscribe to some of the scientific theories. What it does seem, is that the more we know, the more we find that there is a fabric and a structure well beyond our comprehension.

I love the thought of time travel, and often wonder about fate. To this extent, the movie was worthwhile viewing.

Remember to watch out of the persuasive use of music and visual effect to get an uncertain point across. TV, and Hollywood, are powerful mediums.

For those seeking what’s beyond the obvious, I’d recommend joining a bible study group and looking into what’s written there. That’s what I did when I realised there was more to life than money and property investing.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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