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  • Profile photo of ZsoltZsolt
    Member
    @zsolt
    Join Date: 2005
    Post Count: 2
    January 6, 2006 - 12:28 am

    Hi Steve,

    I am currently trying to making a decision of my next move. I live in Cranbourne and owing 3/4 of the value of my home that is tied up in mortgage. Im new to pty investing, although I have learned a lot about it, inc some of your books. Yet the first move is always the hardest and this is where I need some encouragement.

    The following options are the ones I have considered:

    – buy an investment property (thinking around Mordialloc, Vic) for around the 200k mark and rent it out

    – buy a house my partner and I would move into and rent the one we currently live in (this house would cost 300k)

    – buy, fix and sell (the list was recently extended with this option after reading your newsletter)

    Going with the first option would be financially less draining, but that means we would stay in our current house which we dont really want considering we are planning to have a family (and arent particularly in love with the area)
    Second option would be good in this regard but would also cost a lot more.
    The third one I dont know much about but I guess it would still mean that we are staying where we are. It would also require more time which with my current job I dont have that much.

    So there is the dilemma. Do you think you could shad a light on what we should do?

    Cheers
    Zsolt S.

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196
    January 8, 2006 - 12:00 pm

    Hi Zsolt

    One sufggestion is to use the equity you have in your property to start a vendor finance real estate business. Vendor financing (usually using either a “Wrap” or a “Lease/Option”) is a great way to start a positive cashflow real estate business. I personally believe that the real wealth in real estate is your equity but by creating a positive cashflow business you then start to have the cashflow to create real wealth, i.e. equity.

    Both Steve, Rick Otton and a number of other experienced vendor financiers have products that will help you get started, e.g. Steve’s “Wrap Kit’ and Rick’s “Wrap Pack”.

    Good luck.

    Cheers, Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

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