I have just been to a Carly Crutchfield free seminar. At the end you could buy into her training program for $6000, and although I would love to do that, I dont have any where near that money spare.
One of the most attractive points she made was that you truly can get into property without a deposit or any money of your own. There are tricks and ways she uses all the time to develop or invest in property without using her own money.
Is this really possible for someone with no experience?? Can you really start off a career in investing with not a cent?? Any advice as to how to would be appreciated!!
Yes it is possible if you have equity in a property and can draw on this if not you are going to be hard pushed to do many deals as at some stage in the game you have to part with a deposit (or Call Option Fee) need a Solicitor to draw up a Contract / Option Agreement, put the power on a house so you can renovate it, pay some insurance etc etc.
Great in theory and when you leave the Sales Course you are convinced you are on the road to riches but realistically it doesnt work like that in the current climate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
There are other things you can bring to the table if you have no money.
I do sometimes feel like it is a bit of a fairytale but there are people out there who have money and don't have the interest/inclination/time to look for deals. I have found two such people so far (both through free seminars!) and am now constantly looking for deals for them.
I would be employed as a project manager – getting around 20% of the profit.
There are ways to do it but it is a hard, long road. And very frustrating – I am constantly finding AWESOME deals and virtually cold calling developers
. Hasn't worked as well as I thought it could, they either ignore me or say they are not interested but will pass it onto their networks.I figure if I keep going I will eventually hit on something! If not then at least I am gaining really valuable experience.
Oh and with the investor I am working with at the moment, I asked him what my role was in all this (considering I have no money to bring to the table) and he said "You're the terrier". And that is exactly what I am, constantly calling agents, negotiating, searching,searching, searching.
If I can find enough deals and do enough projects I will eventually be able to contribute financially and take a bigger cut of the profits.
Good luck.
I believe it is easier said than done. I believe these spruikers are telling the truth and I believe it can be done but I think they perhaps leave out the one fact we all know .. it is hard to learn how to determine what is and what isn't a good deal. It is hard to predict the future of market etc. those that are good at it have spent many years learning generally by doing.
Perhaps the promoted idea that it is easy and anyone can do it, no experience or knowledge needed is a little far fetched. I believe it would be a tough ride but for the determined sucess could be achieved. But you would have to be determined and be earning your bread and butter elsewhere… just my opinion.
I agree with Intrigue, when I first started (not that long ago) the first thing I saw on property development was Carly's free DVD. While it was great, it did give me a bit of a false idea that this would be a quick, easy way to make billions.
Especially the bit where she says "just spend a couple of hours a week, find a deal, find a developer and get $30K" hmmmm not quite.
I often wonder where all these magical developers and rich people are! If I find them, I'll let you know
Justine08, id like to add something,
If you are in a position to do so, and are hungry enough, the absolute best solution is to do what EVER it takes to come up with a deposit or some money toward your investment.
There are numerous threads on the forum with tips to save, or increase your income. I am a firm believer and know from experience that regardless of the situation you can change it for yourself.
Dont leave it up to someone/something else to decide wether you can get on board a development/buy a property, just try your hardest to access the capital yourself.
some people will agree and others will be ambassadors for no money down techniques, but i think the best option is come to the party with equity/savings/inheritance/bonds or whatever
Ben
Thanks to all who replied, valid and helpful points. I cannot imagine being successful in any business would happen easily or quickly. It is easy however to get carried away with the sparkle and promise at the seminars. I couldn’t quite grasp how it is possible to do a development or investment without any of your own money, apparently Carly does it regularly, but she is experienced. I think I need to do alot more studying!
Has anyone done much with Vendor finance deals? Not sure how this would be possible or how may vendors would want to do it.
justine08 wrote:Has anyone done much with Vendor finance deals? Not sure how this would be possibleVendor finance – when the seller leaves enough in the deal as a deposit. you will need to be able to service the loan though and have a lawyer do up the agreement – There are alot of forum regulars who will be able to give you an in depth explanation as to how it works, and you can search for previous threads and they might answer your questions for you.
Good luck
Hi justine08
Yes we have been doing vendor finance transactions since 2003 and we're very happy we got into the business.
I've got to agree with all the comments here, especially Richard's comment that somewhere along the way, you are going to need "some" money.
One person also mentioned the "terrier" idea. We call them "bird dogs"
They bring prospective transactions to the table and, if the transaction works, we do it on a JV basis with the "bird dog". For one person we're currently working with it has worked and we're onto our second transaction with him. However I'm surprised at his "stickability" as he's bought a lot of transactions to the table but only two have gone ahead. And it's cost him a lot of time and transport costs.Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks Paul
Would you be able to explain to me how this works, is it difficult to do and does it happen very often? Much appreciate any guidance as I am a novice!Hi Justine
Sure. Feel free to give me a call.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
What about someone who doesn’t have an income but has a 60-80k deposit, parents with high incomes but no properties of their own, who are willing to act as guarantor? Would they be able to get finance for their own mortgage?
Regretfully not.
NCCP will prohibit such a loan as clearly the borrower could not show serviceability on their own.
If however the parents were co-borrowers then this is a different matter and would be dependant on the overall income and liabilities of all parties.
Some lenders will not allow such a loan however we have one going thru exactly the same as described in your post.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Interesting……
So if the parents are co-borrowers for the first property, would the child then be able to go and buy a second investment property on their own once there is some equity in the first property?
Justine
Carly is a great presenter – I’ve seen her a couple of times and come away motivated, but let’s get real.Do you really believe you can become a property developer with NO MONEY or search for sites for experienced property developers who have been doing it for years???
There are always people out there who will sell you an expensive get rich quick course. Sure educated yourself, but I’d avoid her
justine08 wrote:At the end you could buy into her training program for $6000, and although I would love to do that, I dont have any where near that money spare.
That seems quite excessive!You can start investing without a cent, providing you have equity. It doesn't even need to be a lot of equity – my wife and I used $50k worth of equity in our current home to kick start out portfolio.
There's a write up about how we done it in this months December issue of Your Investment Property if your interested.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Qlds007 wrote:Yes it is possible if you have equity in a property and can draw on thisHi Richard, could you elaborate this further please, we have equity so is it mainly Call Option you refer to. I quitted my day job but my wife is working, I am happy to be free range while she is a caged hen, interested to my few more IPs.
Oneworld, well if you have a LOC set up on the equity in your current property you can draw on this to fund the deposit or associated costs of undertaking the project.
With only 1 income is going to be difficult to finance the actual project itself so a LOC / cash is probably the only way you are going to be able to move forward with such deals.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
thanks Richard.
I suggest that you check out this site if you are considering doing anything with CCorp, Carly Crutchfield or any of her spruiker mates. http://www.carlycrutchfieldexposed.com
I did a little research myself on the claims that Carly has made about her experience. I even called CCorp myself, but I have to say I was less than impressed with what I was told. Despite considerable enquiries I have found no evidence to suggest that Carly had done even 'one' development before setting up CCorp and professing to be an expert. I also looked into her good friend Steve Fagan (who runs her Elite Development Program), and discovered that a lot of his experience in developing was completely fabricated.) The only thing that either of them may have done previously in terms of property was property marketing. Do your own research or simply ask her to prove her claims. Ask for the addresses of the properties that she claims CCorp are developing, and then check them out to see if it all stacks up. Apparently there are supposed to be an estimated $250 million (which they call quarter of a billion because it sounds better) worth of projects underway. <Moderator: delete language>
Caviet Emptor
. Hasn't worked as well as I thought it could, they either ignore me or say they are not interested but will pass it onto their networks.
They bring prospective transactions to the table and, if the transaction works, we do it on a JV basis with the "bird dog". For one person we're currently working with it has worked and we're onto our second transaction with him. However I'm surprised at his "stickability" as he's bought a lot of transactions to the table but only two have gone ahead. And it's cost him a lot of time and transport costs.
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