Hi all,
I have a simple question to ask, could any of you experienced wrappers please pass on onto a novice how you source funding for deposit/closing costs for multiple wraps??? I must be missing a fundamental issue but the only way i can see is personal unsecured loans (@10%+), Steve does not mention how he achieved this in his book ( 130 props). Having to service two loans for the one deal will eat further into my cashflow. Any feedback would be much appreciated.
Cheers
DP
Savings! or Investors
You will have to save like mad. All the positive income, the wrappers deposits, your wages etc.
And/or
Borrow money from investors. Many people pay 12%+ to borrow money from family/friends and then use this money as deposits. Even though you are paying a high amount for this, the blended rate will be much lower and you will still be making a profit.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi DP
A short answer to your question is that you’ll have to go out and find “money partners” for your deposits and closing costs.
However may real suggesion is to invest in your education first. Wrapping, like all investing, has risks involved. The right education will allow you to mitigate these risks down to a manageble level.
My first suggestion is to grab Steve’s second book asap. Thereafter I’d suggest you devour Steve’s Wrap Kit or Rick’s Wrap Pack.
I hope this helps.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
DP
I used my own money to start with, and now utilise either investors who want to put in the 20% deposit and get a flat rate of interest in return, or JV partners who want to put up all the money to buy the house while I do all the work. Then of course you can look for “no money down” deals!
Certainly I think it’s best to have some runs on the board before taking this sort of step, but if you have friends or family who know you and trust you, you may be able to work with them from your first deal.Keep smiling
Felicity
Also, hopefully you may have equity in existing properties to draw on for deposits.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I agree with FW – You must have a minimum of 3-4 deals before even thinking about using investors… Of course that just my opinon.
Rgds.
Lucifer_auHi There…. I have secured property for a packet of chewing gum … that is all I had of value (rummaging around in my clovebox of the car) after being embarrassed about not having a one dollar coin in my wallet. …. but hey if they say it take money to secure property… then who am I to pipe up ;o)
Cheers
Kiwi
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