I am interested in the opinions of seasoned investors who do wraps or LO’s as to why these are relevant in this current climate. There is a whole swag of Lo Doc, No Doc loans out there with some lending up to 106% so no money for deposit or costs is required. Also with Lo Doc or No Doc loans the title in the investors name not in the wrappers name.
My partner asked why I wanted to do a wrap in light of this and I couldn’t answer. What would a wrap or LO provide to the prospective owner that a Lo Doc or No Doc doesn’t?
Cheers
James[suave2]Hi James
We find that most of our clients have a combination of “challenges” that stop them getting a traditional loan, e.g. no to very little deposit as well as needing a low doc or a no doc loan.
Once you get into vendor financed real estate, you’ll be surprised at the number of potential wrapeees that contact you. Some, like traditional lenders, we chose not to work with but there are many good potential wrapees out their in the market place.
Good luck.
Cheers, Paul
Paul & Karen Dobson
negative2positive
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Phone: (02) 4984 9540Talk to us about Wrap Training Joint Ventures.
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I agree with Paul but also, even if people can get access to conventional loans, minor blemishes on their credit history may only entitle them to higher interest loan products. Some could be as high as 12%
Taking out an option to purchase for a couple of years will allow them to clean up their credit records and therefore qualify to a loan product within reasonable interest rates.
Xenia Ioannou-Mena
Adprop Pty Ltd.
Property Management and Sales
E: [email protected]
M. 0412 437 582Hi James,
Just read your question again. YOUR reasons for wanting to do a wrap or lease option are:
Cash flow
Premimum sales price
Lower market risk
To help a tenant Purchase a home
Inceased Serviceability
etc….Xenia Ioannou-Mena
Adprop Pty Ltd.
Property Management and Sales
E: [email protected]
M. 0412 437 582Thanks Paul & Xenia,
My reasons are definately cash flow based which will increase my ability to service existing mortgages as well as helping someone invest in property who wouldn’t otherwise be able to.
Cheers
James[suave2]James
Just remember that most lenders will not take installment receipts as income when assessing serviceability.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
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