Forum Replies Created
Hi,
Thanks for your feedback.
This site was created in the hope that messages such as this one would be written.
Investing is not an outcome, it’s a journey.
When you feel like you are beginning to be re-educated and having your boundaries challenged then you are on the verge of a significant breakthrough.
It’s just an issue of when you find this site. For instance, I received a call today from someone who has just purchased a property for $237k that rents for $270 per week.
The caller wanted some advice about how to build wealth through property.
It’s a pity they didn’t call before buying.
Karen, work through your finance issue by talking it over with them directly. It doesn’t matter really what I think… I’m not the finance company.
One word of advice though… you are in control, always!
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Greetings!
Thanks for your feedback about the site. We are always on the improve and will shortly look to further upgrade the forum and backend database… so stay tuned for further developments inthe near future.
Pros and Cons of wrapping hey?
The disadvantages are that you are selling the property so one day you will be cashed out… that is, the deal does not go on forever.
You are also precluded in a wrap from refinancing or selling the property, so to a large extent you are locked in to the deal for the term of the contract.
Advantages:
The big advantage is that you can reduce your cash needed by receiving back a deposit from the wrap client. This means your cash on cash return will be better and it’s possible to do no / low down deals.
There is a fair bit of work to set the deal up, but once you have then you can sit back and enjoy the cashflow.
In reality wraps are just one of many ways to make money in real estate. I advocate putting many tools in your property tool kit, which means finding a problem and then matching it with the right strategic solution.
Not all properties lend themselves to be wrapped.
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
You should get legal opinion on this, but I’d imagine the offer is no unless you have a prospectus.
There are laws that regulate how public offers are made and I’d imagine that putting an offer in a paper certainly be classified as a public offer.
This raises a very interetsing issue. I have noticed that John Burley and Dolf De Roos have been looking for investing partners lately. They are doing this via their websites.
It seems to me that as self-proclaimed sophisticated investors they are on very dangerous ground. After the High Court ruling re: Joe Gutnick saying that it is where the online information is read (as opposed to published) that counts, making offers to Australian investors from overseas locations will still need to conform with Australian Law.
I haven’t seen anyone talking about a prospectus confirming to Corporations Law requirements in the offers.
Only please send money to be part of a massive jackpot of property profits.
Hmmmmm – steady as she goes is my advice.
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Check out:
https://www.propertyinvesting.com/strategies/flips
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
We are currently looking at upgrading the forum to a newer version and I’ll investigate the possibility of your recommendation being implemented.
Thanks,
Steve McKnight
P.S. Anyone else with a wish-list for the forum, please post it here!
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Mark,
That sounds like a tall order… but if anyone knows of such as deal then post it here by all means.
We have been able to get 80/20 on residential commercial, but the interest rate is mid 6’s.
And that was put to us as an outstanding deal!
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Karen,
Thanks for your post and welcome to the PropertyInvesting.com community.
Sometimes there is no need to sell, since that will trigger sale costs (such as real estate agents fees) and also capital gains tax will be payable.
An alternative idea may be to renovate (spend the $4k) and then seek to have the property revalued and refinaced.
You can then access your equity to go and do the next deal and so on. Be sure not to spend your redrawn equity on lifestyle expenses though as you will lose the interest deductibility on the portion you spend.
As for your sons in the property… sounds like you might have confused a lifestyle (family) decision for an investing decision. You’ll probably only make that mistake once [
]Thanks again for your post and don’t be shy about making more in the future.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I’ll have a stab at your questions…
quote:
1) Does anyone know if we pay land tax on vendor finance deals in NSW?I don’t know specifically for NSW, but in Victoria there is a form that the client signs to say they have beneficial owndership. The effect is that because it is a residential house, there is no Land Tax payable. I suggest you contact the NSW body for administering Land Tax and see if there is something similar.
quote:
2) Where can I get info on rental returns? (as I don’t trust the RE Agents)There is a good range of rental information available (for a fee) from the Real Estate Institute of Australia
quote:
3) If any of you have a lawyer, accountant, mortgage broker or insurance agent that are wrap friendly, could you let me know?There was a post listing out this information recently. I also know that the Wraps and Vendor Finance Association has a good list.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Sooshie,
Love the story… a free wealth assessment in the comfort of your own home.
Did you ask how many properties he owned?
Thanks for the contribution! Great post.
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
OK – for some time now I have been contemplating a policy that covers the issue of selling second hand product on this forum.
First let me say that this site was never designed to be an information product type ‘e-bay’.
However, I do respect your right to sell second hand goods.
What I suggest you do is put it up for sale on E-Bay with the understanding that the mentoring services provided with the product only vest with the original purchaser.
On Monday I will go back and delete posts made about second hand product (whatever the product) and formally adjust the forum rules to reflect this change.
Thank you for asking first and I hope you understand the need for my position and to ensure that the forum does not become a free-for-all online garage sale.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Sounds very interesting.
You’d want to think about rules for getting money out if someone no longers wants to be a part of the set up.
You’d probably set it up via a unit trust.
The success of the venture would depend on attracting people who were like minded.
But it’s different and I quite like it as a concept.
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
My policy is this:
Blood is thicker than water and it’s hopeless to try and clean up blood with plastic money… it only causes a bigger mess.
Unless you can come to a commercial understanding, don’t mix them. Friends are worth more than money.
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Looks like you are either going to hold off, or alternatively buy Rick’s product.
My Wrap Library has been so popular that it has sold out.
I plan to do a major edit and then release a 2003 edition. Hopefully it will be ready by the end of March.
I respect Rick as a fellow investor. We both see the benefit itn wraps but approach the issue of making money differently.
Rick looks to be cashed out and as such as to re-create his business every few years.
I take a longer investing timeframe and seek to keep the income stream for 25 years if possible.
Both work, both seem to achieve the results we are looking for. You need to decide which style best suits your needs and then act accordingly.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
You ask:
quote:
How does it feel to have wrapped 40 propertiesOK, I guess. It was hard work to set them up but now they are in the cashflow stage, it is quite simple. You just need to be on the ball when some people fall behind.
quote:
I need to know how it feels when the wraps are all bedded down. Do purchasers ring 3 times a week with problems?Nope. I’d be lucky to get a call a month.
quote:
Is it an effort to manage the contracts?It depends on what admin system you set up. Brent seems able to cope easily enough. It takes him about an hour per week (total) to check payments and update records. There are some economies of scale!
quote:
What if I wanted to live overseas for 6 months?You could track the admin via the Internet. if there was a problem you could get someone to try to fix it for you.
Hope this helps.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
You can usually glen this information from rates notices. Just ask the purchaser for a copy, or you might like to call the council. They may or may not tell you depending on what their privacy policy is.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Oscar,
What happened on the weekend?
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Insurances over a property investment include:
1. Mortgage insurance- payable depending how much yuo borrow. Paid once at the start of the loan.
2. House- covers the building from fire etc.
3. Contents- if you are providing furnishings then you might like to have them covered. Might also like to consider insuring glass breakage, accidential damage from leaking washing machine / dishwasher etc.
4. Landlord- usually covers you in the event of tenant damage or if your income stream dries up (for a limited period of time). Personally I don’t have this as I believe that it is an avoidable cost if you properly qualify your tenants and have a good rental manager.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
My experience is that the valuation fee is part of the application fee. This is then payable at the time of settlement when all the money is being divvied up.
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
The answer is to start looking.
Maybe you could get some stats for median house prices of your state branch of the Real Estate Institute where you live.
Alternatively go to the REIA… they sell data for all States.
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
For more info on wraps, visit:
https://www.propertyinvesting.com/strategies/wraps
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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