What is Wraping?

Viewing 6 posts - 1 through 6 (of 6 total)

sag
Member
@sag
Join Date: 2002
Post Count: 3
November 26, 2002 - 5:53 am
Hi I’m only new to the site, on a few of the topics people are talking about Wrapping.
My questions is what is Wrapping?
Cheers
SG
wilsonkay
Member
@wilsonkay
Join Date: 2002
Post Count: 52
November 26, 2002 - 6:21 am
Hi SG,
A good place to start would be: https://www.propertyinvesting.com/files/content.asp?cid=wrapintro
Secondly if you have not already done so, sign up for Steve’s free report (button on the menu). This might also explain a little further.
Hope this helps.
Regards,
Tim Wilson.
“Poverty is not an option”
Sooshie
Member
@sooshie
Join Date: 2002
Post Count: 974
November 26, 2002 - 7:29 am
Hi SG,
I remember thinking the same thing, and when I found out about it through a magazine advert, I thought it was a scam. It is no such thing, so browse through the postings, there is a lot of info available. If your in the market to make some money with very little down… and you have time to kill… Welcome to the club!
Cheers []
Sooshie (aka Den mother [:0)]
There are no problems, only solutions!
aops16
Participant
@aops16
Join Date: 2002
Post Count: 1
November 27, 2002 - 4:02 am
Wraping question, why would the purchaser of your property pay a higher rate than that offered in the loan market.
i.e in the example given you’re paying interest rate of 7% but provide vendor finance at 9% p.a. Why wouldn’t purchaser seek market finance.
Isn’t the whole premiss of Wraping to ofset your repayments with your vendor finance given. This may not be attractive to the potential purchaser. Could someone please comment if my understanding of concept is wrong?
wilsonkay
Member
@wilsonkay
Join Date: 2002
Post Count: 52
November 27, 2002 - 5:03 am
Hi,
You have a valid question. In fact we even advise all of our clients that they would be better off getting a conventional bank loan if they can (due to additional interest), and we would actually prefer they did, as it is in thier best interest – but You have to remember that a wrap (vendor terms contract) is just one form of property investing to solve a particuliar problem in a particuliar segment of the home buying market. Therefore our customers are people who want to own thier own home who banks won’t touch. For example:
– Those without a deposit
– Without a savings record
– Bad credit record
– Bankruptcy
– Low income
– Self employed persons
– etc.
We still use risk minimisation like the banks (credit checks etc), but we don’t have to worry about keeping the share holders happy . There is a large market out there looking for this type of a solution to thier problems!
Hope this helps the gaps
Regards,
Tim Wilson.
“Poverty is not an option”
sag
Member
@sag
Join Date: 2002
Post Count: 3
November 28, 2002 - 4:07 am
Thanks Tim & Sooshie I’ll take a look at the links.
Cheers
SG
Edited by – [email protected] on 28/11/2002 1:08:04 PM