NTTT – Not Telling The True
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]>>Quoted:
Fantastic, you can now turn around and wrap them<<Sorry Chan, I deleted my post once I saw that you fessed up.
Pisces133
Getting people pissed and trying to sell them property? Now that’s new [:p] Was the onsite broker refilling your glass?
kay henry
Hay Henry,
Who are you referring too?
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Chan, you said they had free aocohol- as much as you could drink. Hence my reference to plying people with alcohol and warming them up for deals.
Oh, by the way- who else was there from this board?
kay henry
KH,
Just me and S.I.S. the rest does not identify themself.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]They probably got a cheap deal on the alchohol from whatever was left from the Elvis weekend[:p][:p]
Can you tell me where the properties were in Parkes? I know the area reasonably well and there are some definite good areas and some you do not want to be near.
Did anyone sign on the dotted line whilst on the bus tour? (someone may have been that stupid!)
‘Eat rich food, barbeque a yuppie’
hmmm… we’re “tyrekickers” if we don’t sign up, and stupid if we do?
What is a tyrekicker anyway? Someone who checks a lot of deals before they buy?
kay henry
They probably got a cheap deal on the alchohol from whatever was left from the Elvis weekend
We was drinking with Elvis Shadow.Can you tell me where the properties were in Parkes? I know the area reasonably well and there are some definite good areas and some you do not want to be near.
Most property in Parkes are at the edge of town with most of them are home and land packagesDid anyone sign on the dotted line whilst on the bus tour? (someone may have been that stupid!)
YesWarm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]ok, guys
V.O. buys a property for say $200k or any property but puts a real hefty markup on the resale of it to you (you as the investor), not just one property, but he has managed to buy and control 1500 properties. At the expense of an investor, who is locked into 5 by 5 year leases, which gives him total control over your property.
Here is an example of how the deal works, (all his deals are block of units by the way.)
V.O. Purchases property at $190k, he sells to investor at $240k. He makes a $50k profit. (with this deal comes many strings attached.) He promise to also landlord your property with a 10% GY return of the purchase price. If you dont let him landlord your property, he will not sell the property to you at all. He also locks you into a 5 year contract, with no choice to pull out, or you pay hefty penalites, puttin you back in that predictiment, that you have to let him landlord your property for you. (you can also lock in a contract for 25 years, now for a novice investor, this is not good for them, yet so many fall for this.)
$240k property @ $24k GYR = 10% GYR
With this figure and at currnet interest rates, and having to be locked in for 5 years, this property is not +ve cashflow, yet it is +vely geared. (Many novice investors, may not know the difference between +ve cash flow and +ve geared). This property is infact more -ve or far from neutral.
On all properties, he offers management, he will do all maintenances service for a small fee of $10 per each seperate unit or property rented.
Remember he sells blocks of units (1 title x 4 units). So infact he is getting $40 for this such deal .
Each year due to CPI this has an about 3% inflation across the economy, thus meaning because he rents to pensioners, the government increases there pension by about 3% every year.
So lets go back to this $240k property he sells you.
$240k property @ $24k GYR = 10% GYR.
Deal looks great, but on paper, its shonky let me keep explaining. All these incentives he gives you at a $10 fee and then locks you in at 5 years. Something is Wrong.
I will keep explaining in next post.
Cheers,
sissis, pensions are not increased in line with CPI.
Also- did he tell you he buys for 190k and sells for 240K? That is pretty full disclosure! did he say that for real?
kay henry
Can you tell me where the properties were in Parkes? I know the area reasonably well and there are some definite good areas and some you do not want to be near.
Most property in Parkes are at the edge of town with most of them are home and land packagesWere they on the southside of the railway line? That is flood country
Did anyone sign on the dotted line whilst on the bus tour? (someone may have been that stupid!)
Yes
Do you mean to say that people did not even get a solicitor to look over the contract? Are people really that naive?‘Eat rich food, barbeque a yuppie’
Because he promise you a 10% GYR on the property, you dont get that 3% CPI inflation facted in. V.O. gets that, he takes the rent money from the pensioner plus there 3% CPI inflation for each year, as their pension increases.
Though after 2 years, you are still getting $24k on your $240k IP. Even in the 5th year of your locked contract with him for being landlord, your still getting $24k, doesnt matter, if you were to lock yourself with him for 25 years.
In 25 years time you will still be getting S24k.
So far can you see the catch?
Now lets say you want to sell your property after 5 years, because he put a hefty markup on the IP, in 5 years time on an IRR and including your cost base for this investment. You can not sell your property at a profit, cause you just dont break even yet on your return.
- V.O. manages to purchase a property at undermarket value, he sells it at an over market value, you have to put more money in the deal as the bank will not take a 20% LVR deposit on this.
- On every seperate unit each week, he makes a $10 profit,for the lenght of the contract and because of a 3% CPI inflation every year, he further makes more $$$
- Your stuck with the same GYR each year, which does not increase in your favour. Has locked in a investor with a pensioner, who has not got much choice in their position
- Short term the money looks good, but over time, your stuck with a property, not a good rental return, and limited in what power or control you have
The only way this deal is going to work in your favour is, if you can lock in an interest rate of under 7% for 5 years, and have huge capital gain, when your contract expires. If not, you either sell the property at a lost or you continue with another 5 year contract and at the same rental return for of what you purchase the price to begin with.
ok i dont know if you understand how it works, but thats how he has been able to do this and lock in people with no choice or little control, because of such guarnateed returns.
Cheers,
sisOk, V.O. is very upfront and tells people that he has put a huge markup, but guarantees the rent for the next 5 years.
Yes people are crazy, they are signing deals on the bus, with no solicitor and in the middle of nowhere, were your mobile fone has no reception or phone coverage.
People are just going into the deals with no legal or third party advice or check ups, they were signing up like hot cakes on sale.
The real losers are the investor and the pensioner, wno is also locked in.
Its sad, but true, but this was happening right there infront of us.
Cheers,
sisKH – Pensions are not incresed in line with CPI – true
V.O. will increase the rental return if the pensioners get their payment increase.
yes he did told me about this. he also said if you get a bank valuation on the property you won’t get $240k. So you have to come up with the different.
S.I.S, have a got sleep last night? I feel asleep in the sofa when I got home.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Can you tell me where the properties were in Parkes? I know the area reasonably well and there are some definite good areas and some you do not want to be near.
Most property in Parkes are at the edge of town with most of them are home and land packagesWere they on the southside of the railway line? That is flood country
I don’t care back then because I did not intend to buy. I can check for you in the map, but I am at work can not do it now.Did anyone sign on the dotted line whilst on the bus tour? (someone may have been that stupid!)
Yes
Do you mean to say that people did not even get a solicitor to look over the contract? Are people really that naive?
yes they are that naive and they will lost 2% of purchase price if they pull out later.Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Hey Chan$,
yeah i got a few hours sleep, watched some tv, just could not get enough sleep… lol to much sleeping on the bus, but still made it to work, im home now, but im taking the rest of the day easy.
Cheers,
sisby the way, that has to be the longest bus trip ever…
Wow boys, thanks or the “low down”, looks like VO is our new HK.
Isn’t it fantastic that we have the ability to share this experience with each other and save some from certain disaster.
Well done and thanks again.
PS: So who’s going on the next one, I don’t think I want to miss it now!
Cheers
Leigh K[
]Carve your own path and lead the way …
S.I.S
Taking the rest of day easy – right
Relaxing on the chair typing and staring into monitor screen just like me.
My boss just gave me a big project, better get on with it now otherwise can’t finish it.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Oh BTW, what about the arguements .. do tell.
Also can we have some clarification about being watch by guests … whats that all about?
Cheers
Leigh K[]Carve your own path and lead the way …
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