All Topics / The Treasure Chest / just beggining

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  • Profile photo of solinoidsolinoid
    Member
    @solinoid
    Join Date: 2002
    Post Count: 0
    May 30, 2002 - 10:34 pm

    hi
    i have been reading every book i can get my hands on on property investing

    and i belive that postive gearing is ther way to go wether it be with wraps or just rental cashflow

    i have just started a debtmucher plan to pay off my depbts and save for a house deposit of 10,000 in about 15 months hopefully

    for my first property i am goingt to aim at about 100,000 or under but providing i can make positive cash on rent

    i also have a question about wraps…if u currently have a mortgage and wrap it to someone else…do u find it hard to get financing for another property and another seeing as that the banks will think u are exteding too far wont they ? and want u too pay put the loans first b4 getting the second and third ??
    am i on the right track so far as a bigginer ? anymore advice or web sites would be greatly appreciated i am in brisbane

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763
    June 2, 2002 - 8:44 pm

    Hi,

    You ask:

    if u currently have a mortgage and wrap it to someone else…do u find it hard to get financing for another property and another seeing as that the banks will think u are exteding too far wont they ? and want u too pay put the loans first b4 getting the second and third ??

    There is a problem if you buy it in your own name as you will eventually max out at the 30% debt service ratios that most lenders impose.

    This is why I buy in a company / trust structure and then reproduce the entities when I max out. This allows me to go on into perpetuity, although it can be expensive in accounting fees to keep running.

    The bigger issue about wraps and finance is finding someone who is happy to disclose to lenders that you are actually wrapping… see posts on this forum for more about this.

    My thoughts on property investing is that it is as hard or as easy as you make it.

    Regards,

    Steve McKnight

    P.S. As you start looking for properties, apply the 11 Sec. solution to give yourself a guide as to what deals you should be focusing on to find +ve cashflow deals.

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

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