Hi everyone,
We are new to propertyinvesting.com and the idea of positive cash flows – it is all starting to make sense. We are only young (both 23) and own a negatively geared flat in Inner Eastern Melbourne. We have our property on the market at the moment in the hope of selling and starting again with positive cash flow properties – however the more I read about wraps the more interested I become.
My question is – how do we go about finding our wrap client and where do we go from there? Can our selling agent help us with this? What sort of research should we being doing so that we are well prepared? I have read both of Steve’s books and many others – so am fully aware of the basics but it seems there is so much more to know.
If the wrapee defaults, does the responsiblity for mortgage repayments fall back on us – or does the bank sell up?
Advice would be much appreciated as we want to make a start as soon as possible.Alternatively should we sell up and stick to a buy and hold arrangement. I am a Property Manager myself (we are not all bad!) so this is comfortable ground for me..
Kate
Doing a wrap is a sophisticated strategy. And right now there seems to be an awful lot of pressure on wrapers. Just recently Consumer Affairs Victoria is taking a wraper to court (http://www.consumer.vic.gov.au/CA256F2B00231FE5/page/2004-November-Mortgage+Wrapper+Facing+Potential+Penalties+of+%243+Million?OpenDocument&1=75-2004~&2=11-November~&3=0-Mortgage+Wrapper+Facing+Potential+Penalties+of+%243+Million~)
The reason why I’m telling you this is because in my opinon many people have jumped on the band wagon and aren’t trying to create win/win deals, which in this business is paramount.
I suggest you pick up Steve’s wrap kit (http://propertyinvesting.com/resources/5.html) (it does seem sold out though) or pick up Rick Ottons or John Burleys material (I would suggest though that you wait for Steve’s to come up again and use the time to learn off this and other forums).
Rgds.
Lucifer_auHi Kate
I’d just like to completely agree with the advice offered by Lucifer_au. Steve’s home page has an add for Steve’s Wrap Kit for $695!! In my view this Kit or Rick’s Wrap Pack are essential reading before getting into this business. And the benefit of both these resources is they lead you step by step into building your business. Good luck for the future.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi Kate,
I haven’t actually ever done a wrap deal, but I did go to a seminar last year held by a lawyer called Lewis O’Brien, about the legal issues regarding wraps. Steve McKnight actually recommended the seminar on here. He is probably worth contacting regarding contracts etc. His contact details are:
Lewis O’Brien
Commercial Lawyer
4/310 Whitehorse Road, Balwyn, 3103
Ph: (03) 8801 0111
Fax: (03) 9878 4906
Mob: 0407 521 112Regards
AlistairThank you all very much for your help.
Kate Norton
I am a newbie as well, but what I have been trying is whenever I visit regional VIC towns, I bring with myself leaflets of my (vendor finance) services and contact details and drop them off at people’s letterbox. Another way of doing is to build a good rapport with real estate agents and possibly ask them to post your vendor finance (service) ad in their window and website.
Want to join financial independence before 31 years old, currently 25
You must be logged in to reply to this topic. If you don't have an account, you can register here.
