Forum Replies Created
- Qlds007 wrote:Hi Morty
Don't want to burst the bubble on your idea but it doesnt work.
As a Director of the Company or Trustee of the Trust you are obliged to disclose any liabilities you guarantee and I am sure if you do a search you will find that this topic has been bought up a number of times.
If you wish to carry on purchasing properties and the Bank believe your serviceability is maxed out then why not consider a nodoc / lodoc 2nd mortgage. Admitedly the interest rates are a fair bit higher than mortgaged rate but often it is for only 10% of the purchase price and you can always make this principal & interest to reduce the debt.
I process a fair amount of this type of lending for clients.
Hi Richard,
I've just been doing the homestudy masterclass and Steve in his course said that that's the structure that he used.
He said that on the form (when applying for a 2nd loan) with Bank 2 – there is a area that asks are you a "guarantor" for any other loans – to which you do answer yes to. Then the 2nd bank can go and do a credit check however as you are listed only as a guarantor, therefore the debt is not in your name and should then allow you to continue borrowing as it's not debt until that loan under that structure is defaulted?
Or has the rules changed since then?
Thanks!
Wow – keep going Redwing – you give other people HOPE!!!!
Thanks for sharing!
Share some tips while you're at it.
Hey hey donkey33!
I find myself in a similar position to you. Have you come to any conclusions that you can share?
Hi Lottee,
Wow! I find myself in the same position that you're in.
I went to Positive Real Estate Seminar just last week (in Sydney) on Tuesday and am considering joining their mentoring program myself and before i cough up the $ for it – i've been looking at other mentoring programs that are similarly priced so that i get more value for $.
RESULTS seem to be the same price as well and i have since bought the home study masterclass from property investing (only arrived yesterday 28Nov07 and will be reviewing it this weekend) to see if i can be armed with a bit more knowledge before going into a mentoring program where i can then be asking questions like "how do i get my goals that i want to achieve with property" rather than "What do i do".
I also went to Positive Real Estate's mentoring session for free (so that i can have a look around). The structure of the night is that mentorees (existing) get up and talk about the past months deals that they've done. Some had a few going/some had none going/some had ones that they were waiting to settle. Then they had a speaker for the night.
What i did was i tried to speak to as many mentorees on the night to see if any of these people that had been in the mentor program for a while and where achieving the results/goals that i was hoping to achieve. Most of them seemed to be wanting to replace their incomes with the cashflow from their properties. Some said they're about 3 -5 years away others were 7 years away. I did have a feel that this wasn't a get rich quick scheme – and required you to be committed for at least 5-7 years.
Then after that – they present some deals available to the mentorees that they found and the mentorees could take the deal but still would be required to pay for the finders fee (approximately $8k). Some people say that's the point of Positive Real Estate – to get mentorees and then the real cash to be made for them is getting the mentorees to buy the properties they found at a huge fee of $8k. I don't think that's alot for a finders fee – you're essentially paying for their time (which is also valuable to them) and getting to see deals that you might not necessarily find yourself AND the buyers fee is a tax deductable fee (check with your account please).Perhaps you should ask if you can attend a mentor night just to see if it's what you're looking for rather than having all these expectations about what they will deliver – and then they don't – and then you think it's a scam when really – your expectations is just not what they do.
Also – i did some searching on Jason Whitton (Presenter) – he seems to be affilitated with RichMastery (http://www.richmastery.com) but has since cut ties – i haven't had the chance to ask him if this is similar to RichMastery but for Australians (as richmastery is New Zealand based). I know that there has been some negative comments on RichMastery but if they can help you deliver the results that they say – that's AMAZING – but yet to find some "real people" as i've read a few of the Rich Mastery books and have been on their forums.
Still having said all this i think you need to assess what your own goals are and the timeframe that you're trying to achieve them in and what you actually NEED a mentor for compared to "can you do it yourself?"
From my own research i have discovered that i need some assistance in the area of "Creative Financing"/Is it feasible what i'm trying to achieve/Hand holding from these people to see if it is a good idea/pitfalls.
People do say that you can do all this yourself – but i'm trying to get all this information at my fingertips rather than using my time to search for it. So you sort of get what you pay for.
Let me know how you go cause i would love to hear about what you chose in the end!
Goodluck.
