Hi I am new to this site, I have read Steve Mcknights 1st book and he states that wraps are such a great way to go. I am presently reading everything on this website and found the page concerning the wrap kit. The question is if this kit was so good why do they no longer sell and is there anything to replace it
thanks
Yes wraps can be a great way to go (god should know i have done enough of them) but like with anything in life your own circumstances change and your'e requirements change with this.
You might start being quiet happy with the cash flow but then as time goes by want some capital growth or a combination of both.
Wrapping can be time consuming and hardly worth it if you only want to do the one deal.
Done over time can produce a very nice monthly return.
Richard Taylor | Australia's leading private lender
Hi Damian, wraps are not allowed in several states, that probably has something to do with their popularity. With no disrespect to Steve, many of the concepts in his first book are no longer relevant or applicable. Its a different world now. Many RE commentators are grossly negative towards them. As Richard said they are time consuming.
Lalibella i think you will find it is oly SA that wraps are not allowed in however normally Lease Options would be used here.
Richard Taylor | Australia's leading private lender
Hi All
As Richard mentions, S.A. is the only State that will not allow the use of an Instalment contract in a real estate transaction (Wrap).
However, in 2009, S.A. also tightened up the rules regarding Lease/Options. So much so that a good friend of ours, who had been using Lease/Options in Adelaide for many years, packed up his family and moved to Melbourne, so he could continue his vendor finance business. In short, I'd suggest you give S.A. a miss when it comes to vendor finance.
And most "commentators" get their information from where? Certainly not from our clients, who couldn't get a traditional loan, bought with vendor finance from us and have now refinanced into a traditional home loan. For them it's been a great "stepping stone" process back into the traditional finance channel.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks everyone for your comments
I am looking to do this long term but have much to learn,can anyone recommend a wrap kit they use or where to get more information.
thanks
Damian
Hi Damian
Their are/were a number of wrap kits/packs available in the marketplace. Rick Otton's Wrap Pack is still available, Steve McKnight's Wrap Kit is no longer being sold and I think Paul Zelitis (not sure if that's the correct spelling) also has one out. I don't know the name of Paul's but I do have both the others.
One point to remember about all these Kits/Packs is that any legal paperwork that's included is only an example and should not be used in a real transaction.
We get charged $980 to get our Instalment Contracts drawn up. Who pays that $980? The new buyers. We tried doing it ourselves but it takes way to long and why would we bother, when the new buyers pay and we have confidence that our solicitor will get it right.
Also, we insist that every one of our new buyers gets independent legal advice.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi guys
Ahh, you gotta be careful bagging vendor finance in the creative forum!
Actually Paul, this isn't the first time I've heard Rick's wrap pack is no longer available. I'm not 100% sure on it, but Rick did say recently he was moving to just teaching the one strategy (LOs) because two strategies leads to more confusion than action!
As for RE commentators bagging wraps, I have heard 2nd and 3rd hand stories of bad apples doing deals that probably wouldn't allow me to sleep well at night. I know a couple of hundred people who do this stuff or are trying to, and I haven't heard anything untowards from any of them. In any case, if the buyer wants to pay what they're asking then I guess that's up to them.
Also, it's been a couple of years since I've read Steve's books, but I can't think of anything in it that is no longer relevant? Anyone? Sounds a little like an excuse for inaction to me.
Where are you looking at doing wraps Damian??
Hi Andrew
I am based in Brisbane but it doesnt matter where I do wraps as long as they can be managed well
Damian
Whilst i have only ever done wrapping in Qld it is not the best State when it comes to the payment of the FHOG.
Richard Taylor | Australia's leading private lender
About the resource that Paul Dobson mentioned earlier in this thread – I haven’t seen Paul Zalitis’ wrap kit, but I know Paul and he’s a nice guy.
His website is : http://www.aussiewrapper.com.au/
Ahh yes, the FHOG….
I finally received my first one last December, and have two more coming through this month – might go skiing this year after all!
Contract must be in existence for 12 months or more, they must have made payments totalling at least 10% of the purchase price and they must not be in default. Then they have to sign a stat dec saying all that's true, provide proof, and also swear they'll pay back the FHOG if they move out of the house at any time in the next 6 months, or if the Instalment Contract falls over – that's always a fun one to explain to the buyer!
I knew NSW was good for something
With an Instalment Contract the FHOG is payable on proof of possession.Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
With an Instalment Contract the FHOG is payable on proof of possession.You must be logged in to reply to this topic. If you don't have an account, you can register here.
