Forum Replies Created
Harryson
1) have a look at Steve’s “Wrap Secrets Revealed” product, it is excellent and full of detail.
2) search on WRAP in the previous posts and read to your hearts desire [
]the Bruce
Hi Birdman
I don’t see any problem with dissolving it if you are gong to keep all of the units.
You should stil be able to organise a bulk deal on purchases as already existed, and then you will not have to pay for the manager.
Mmmm,. however, it sounds like one of those “you need to take your own legal advice” questions [
]cheerio
the Bruce
Ally
your accountant can give you great accounting advice, as I am sure that it is her/his area of expertise.
However, unless she/he is also a succesful property investor the advice they give you about property investments may not be as well founded [
]Ultimately whatever advice you take, you have the responsibility of making the final decision, even if it includes discarding some of the advice you sought.
Why not start a thread on the forum and put the question out for comment and get a few ideas from all of your investment family here ??
cheers,
the Bruce
Hi Betsy
I reckon that Steve was on the money (pardon the pun) when he spoke about refinance.
Q: Why would you sell an asset?
A: Oh, you mean that I don’t have too !!??What I mean is that provided that the investment property is paying its’ way (I assume that income net of all costs is positive) WHY would you sell it??
Why not just use it to help get the mortgage on all 3 properties.
Caveats:
1) It must stil work financially, i.e. ideally cashflow after refiance at higher lend is still (+)ve or neutral2) Ideally you will not have to cross-collateralise (more than one title per loan) the new property. You can faciliate this by redrawing on existing investment property and then using this money to help fund new one.
Some lenders like the cross-collateralisation route, but it makes it a little more complicated for you to sell things later (if you ever do). i.e. you need more than one valuation to vary the loan, etc, etc.
Best of all this way you NEVER pay CGT, as you have never disposed of the asset.
BTW the keep never sell idea came from a Dolf De Roos book “Real Estate Riches”; embellishments came from Steve Mck / Dave B / our solicitor / lender / personal experience
cheerio, and have fun [
]the Bruce
Hi Sushi
good on you for starting !!
It is a fun and sometimes bumpy ride, but actually taking control of the financial part of your life is a huge experience. (hugely good that is)
I agree with Harryson & AD,
1) research research research,
2) build the team (business partner, solicitor, accountant)
3) research the market
4) do a deal (i.e. buy something that wont send you broke if it “goes pear shaped”)
5) learn from the experience and do it again
6) embrace your mistakes; they are the best teachers (apart from your children) that you will ever meetAs everyone else said, there is some great reading material here, so this is a good place to start. Make sure you look at the links section of the site maintained by the ever groovy sooshie.
cheers
the Bruce
ps WELCOME !! [
]Hi there Watto !
long time no type….. [
]Our experience with this is:
i) Yes they DO want to know as it changes the amount of risk that they are undertaking, and in fact you would be in breach of your mortgage contract if you did not tell them!
ii) As per any loan; they have the property valued to assess its’ security value and determine the maximum % that they are comfortable with.
iii) They ask you to provide at least some %deposit
iv) They reduce that they are willing to provide so as that the % provided by the 2nd mortgagee (in this case the Vendor), the % provided by your deposit & the % provided by them totals 100%.
This is often considerably less than original LVR as they feel that their risk is increased, and also their costs as they need to deal with a third party.
NB to ensure that they do not get into a situation where their portion helps provide you with greater than 100% finance (say, when you refinance later on a higher valuation), they sometimes sign a deed with the 2nd mortgagee.
An example that we had up and running went as follows:
a) 2nd mortgagee (Vendor) – 20%
b) Purchaser deposit – 5%
c) 1st mortgagee (Bank) – 75%Total = 100%
This excludes additional purchase / set-up costs of about 5%, which we may have been able to Vendor finance if the Vendor would take an extra 5% unsecured.
Howzat ? [
]cheers, the Bruce
hi Jamie
Welcome, welcome ! [
]On the limited information given we will have to go with a generality, so think about this …
Would you rather have you eat from your investment long term, or would you rather have it eat you ??Having said that, you need to really, really know that your research and decisions are based on facts and not opinions.
i.e. fact – currently rented at $120 /wk
opinion – prices may rise in this areacheers
the Bruce
Hi Adrian
welcome the greater community known as P-I-dot-com [
]Good on you for posting! It is hard trying to get to somewhere from nowhere, but as you have just taken the first step it is now closer [
]I have heard that due to legislation enacted in SA that selling using a WRAP style transaction is illegal. However, lease options apparently are not. So there is a way to get started down the vendor finance road.
However, you need to “get it together” first:
1) Knowledge
I reckon that we spent at least 6 months researching before we even felt brave enough to (metaphorically) “dream” about investing in property2) Team
who are you investing with ?
who is your legal advisor ?
who is your financial advisor ?3) Hurt money
i.e. Deposit
Lenders love you to have some $s in the deal so that if it all goes ‘pear shaped’ that you carry some of the loss.I guess that “yes” you could tie up an assignment, but you have nowhere to go if it all falls apart and you have to close the deal. Apparently some Vendors actually do sue people that reneg.[
]Why not do some ‘bird dogging’ for another investor and get a few $s for that ?
Alternately, as Rich dad allegedly once said to Mr RK “go get a job!” and start your R/E investment business in your spare time. Mmmm you could even try for a job as a gofer or Personal assistant in a R/E agency and see what happens on the inside…..
Great idea asking for a mentor, I hope that some one living in SA can help you as you are so keen.
I reckon that you would really benefit from hearing Nivea Prior’s tape out of the set that Steve is releasing later this year too. She is an inspiration as she worked a number of jobs to get her deposit together for her first property when she was in her teens!
Please ask lots more questions here and get your self loaded with info, it can be a very wild ride and the nice folks here help to share the highs and lows!
Good investing !!
the Bruce
Hi Arnaldo
Welcome to P-I-dot-com [
]We now have building and electrical inspecitons done on all of our properties.
Where we live there is less problem with pests than some states, but would consider that as necessary depending on where you live. Our building inspector does however look for some of those things as he goes.
Electrical inpsections have been a real plus with one just before christmas saving us a $1,800 rewiring bill as we managed to negotiate that the Vendors corrected the problem before settlement.
there you go !
cheers
the Bruce
Nathan
maybe I sound a little “conserv” here, but I really think that it is better for you to understand the elements of the contract (i.e WHY those specific clauses are used) than to just use a generic one.
So, my call on this is to say get as much info as you can then sit down with the legal part of your team and put together something that makes sense to you, that you understand.
Of course, this may well be based on a contract sourced from someone else [
]cheerio
the Bruce
Dave
I am with AD & Carolynne here.
During the Sydney Seminar a lot of folks asked me where we bought properties.
I deliberately did not answer with “this” or “that” town as that response really misses the point. WHERE you buy is a function of WHY you buy, not the other way round !!
So after thinking a lot about it, my best (and I believe the most useful) words were:
“Try and find something that you can drive to, so you can keep an eye on it and solve any problems that come up. Later, when you have your system together, you can do things that are more remote”So, why not go for a good long drive around this weekend and just see what turns up within a few hours of home ??
cheerio (and “break a leg”)
the Bruce [
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