I really want to WRAP.
I’ve read all I can find from Burley [sic?], DeRoose and Kiyosaki, Zuckerman and Cummings. I’ve been continually trying to expand my education relating to real estate and hopefully change my reality.
I’m a 22 year old uni graduate (read “vagrant”) with no debt, though no full time job and no savings…University seems good only for creating high wage Employees. I don’t want to be an employee!!!
Though where to start if you haven NOTHING?
I have a few ideas about where to go, though would appreciate any feedback.
1) I work for as long as it takes to save the cash for Steve’s WRAP course (approx $2200?)
2) I keep researching Assignment of Contract as I’ve been doing in the hope that i can engineer a deal that will leave me with enough for my first deposit + misc. costs after CGT. Though where do I obtain sample contracts??
3) I take advantage of the SA “Homestart” programme , whereby I can get 3 times my annual income through the Advantage loan…plus the $25 000 Advantage Plus loan that is INTEREST FREE for 5 years (though added onto your principle with interest calculated from day 1 of the whole loan if not paid off within the 5 yrs)
I figure I could look for a good WRAP property 10 -20% below market value in a good location. Obtain Homestart financing whilst I still can, then sublet to a couple of Uni friends to pay for the “rent”…
I could later Wrap the property and move on.
Problem: Since I’m only working part-time, it will take 6months of work to qualify for the Homestart loan. What should I do in the meantime? Look at property, if only for educations’ sake? I’m happy doing that.
Finally, I’d like to appeal to anyone out there who’s WRAPing in South Australia.
I’d happily work a few days per week over 2003 for nothing, if I could find a mentor…anyone who I could earn money for. I’ll look for property for you. I’ll do what ever you say. We could agree on how much I have to earn for you before I get any return.
Again, I’m SERIOUS about entering the real estate WRAP field…though with NO MONEY, where to begin?
Sincerely, Adrian
Hi Adrian,
To my knowledge it is illegal to wrap in S.A. but I’m not sure if this means it’s illegal to wrap a property in S.A. or illegal to do if you live in S.A.?? I’d seek legal advice before proceeding any further. Perhaps you are better off looking at Lease Options (not sure if these are legal in S.A. or not??) or if it’s okay for you to wrap as a resident in S.A. perhaps you will have to look at property outside your state (difficult to do if you don’t have the means to go inspecting properties interstate or paying someone to do the leg work for you. It seems to me like you’re trying to run before you can walk!
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
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