assumable mortgages

Hi CD,

I don’t think you can assume a mortgage in Oz. A shame really, it sounds like there are some creative solutions available by assuming loans.

Cheers

Chris B
http://www.tradingsecrets.com.au

Canadian Dave…

I was surprised when I first learned about assumable mortgages in Alberta as it is a new possibility for Australian investors.

FYI, the law here is that the mortgage here needs to be paid out (ie. clear title given) at the time of settlement (ie. when title passes).

In fact, the whole tertiary loan market (such as 2nds etc.) is quite untapped over here.

That’s why wraps are so exciting in Alberta. When you take the possibility of assumable mortgages, add on a multi-family property and then wrap then, it gives you a fantastic opportunity to buy and sell property without ever having to qualify for anything.

If I were you I’d be carving this niche for myself and make some serious money while creating win-win outcomes.

Let me know if you have any questions and I’ll try to help you through the process from what I know of the Canadian side of things.

Bye,

Steve McKnight

Hi Guys,

In countries such as Canada, is the need for title insurance due to the ‘assumability’ of loans? Is there a similar insurance applicable in Aus or not necessary due to different laws?

Chris B
http://www.tradingsecrets.com.au

Hi,

Back in May 1999 David (my business partner) and I purchased my first property – a little 3 Br/1 Ba home in the back blocks of Ballarat for $44,000.

At the time we purchased it the plan was to rent it out and then make some positive cashflow. Indeed, immediately after we purchased it we let it back to the owners (short-term) for $125 per week.

Around this time I left with my wife to complete a marketing seminar in Vancouver. At the event I met up with a Canadian property investor in B.C. who outlined to me what he did, which was an abriged version of vendor finance – something that had been available in Australia since the early 1900’s.

When I returned I looked to sell our first property for $65,000 under a ‘terms contract’, which meant that instead of selling it and receiving a lump sum payout – I received weekly installments for 25 years.

In essence I did a lay-by on the property by selling the property and providing the finance too (that’s what a wrap is).

Over the next 18 months David and I went on to purchase over 40 more properties and sell them in this fashion, thus creating a postive cashflow income in excess of $100,000 per annum.

I began sharing how I had done this on some Internet discussion forums and before long I was asked if I could run a seminar that outlined exactly how the process worked, including the accounting and legal aspects.

I agreed to do so and ran a full one day workshop.

This was the precusor to the ‘Wrap Secrets Revealed Library’ – an audio and written program that details everything I know about wraps.

This program has been a great success to many investors around the country you have leveraged off my advice and made money.

Hearing about my success and my focus on a win-win outcome, A Current Affair ran a story outlining how I had a positive impact on people’s lives and how it is possible to help people and make money at the same time.

When a close friend, Don Campbell from Canada (who runs the magnificent Alberta REIN program) saw the results he asked me to
speak in his home country about wraps and how they have worked for me.

At this event I went through my Laws of Property Investing Success (which I am currently outlining in the Insider newsletter series) as well as a wrap intro before detailing how the Wrap Library has been able to build wealth for many people back home.

Canadian Dave purchased the product as a result of this seminar and I am very pleased that he has found it to be worthwhile.

For more information about wraps and the product, please go to:

https://www.propertyinvesting.com/files/content.asp?cid=wrapintro

Bye,

Steve McKnight