From: Steve Navra
Ringing Bells # 1
I am more than a bit concerned that in excess of 30% of the attendees of my April Melbourne course, are DANGEROUSLY OVER-EXPOSED in regard to the numerous ‘Flips’ they have set up. By this I mean that they are unable, now and in the future, even with the assumed capital growth on these projects to obtain the necessary finance to complete (and thus might be ‘FORCED’ to trade, in what could be unfavorable circumstances). This together with an expectation of a series of interest rate hikes, which could well flatten out the capital growth expectation of such projects.
Fortunately, I have been able to help most of these investors with some ‘defensive’ structure planning. I am now receiving an avalanche of requests from investors in a similar position – with some of them becoming very irate that they can’t get into the next Melbourne weekend course (unfortunately booked out).
To alleviate the demand, I will be holding a single evening STRUCTURE TALK on 5th June in Melbourne and will address this topic in some detail, together with my usual ‘Optimised’ use of assets. Please refer to ‘Meeting Point’ for further details.
Ringing Bells # 2
Many clients have entered into purchases that offer a rebate, or cash back amount on settlement, that has been built into the purchase price such as deposit gapping and / or similar type of arrangements. Please be very aware that these practices are UNDER SERIOUS REVIEW, and that such arrangements need to be FULLY DISCLOSED to the lender. This should in fact form part of the contract to purchase. Many vendors, solicitors, agents, finance brokers and purchasers who have been a party to such arrangements are possibly in danger of being prosecuted for such practice. SO PLEASE BE CAREFUL, and get some professional advice in this regard. -Ahem, Rolf and Dale, your comments on this subject should be of interest to us all.
Regards,
Steve
Ringing Bells # 1
I am more than a bit concerned that in excess of 30% of the attendees of my April Melbourne course, are DANGEROUSLY OVER-EXPOSED in regard to the numerous ‘Flips’ they have set up. By this I mean that they are unable, now and in the future, even with the assumed capital growth on these projects to obtain the necessary finance to complete (and thus might be ‘FORCED’ to trade, in what could be unfavorable circumstances). This together with an expectation of a series of interest rate hikes, which could well flatten out the capital growth expectation of such projects.
Fortunately, I have been able to help most of these investors with some ‘defensive’ structure planning. I am now receiving an avalanche of requests from investors in a similar position – with some of them becoming very irate that they can’t get into the next Melbourne weekend course (unfortunately booked out).
To alleviate the demand, I will be holding a single evening STRUCTURE TALK on 5th June in Melbourne and will address this topic in some detail, together with my usual ‘Optimised’ use of assets. Please refer to ‘Meeting Point’ for further details.
Ringing Bells # 2
Many clients have entered into purchases that offer a rebate, or cash back amount on settlement, that has been built into the purchase price such as deposit gapping and / or similar type of arrangements. Please be very aware that these practices are UNDER SERIOUS REVIEW, and that such arrangements need to be FULLY DISCLOSED to the lender. This should in fact form part of the contract to purchase. Many vendors, solicitors, agents, finance brokers and purchasers who have been a party to such arrangements are possibly in danger of being prosecuted for such practice. SO PLEASE BE CAREFUL, and get some professional advice in this regard. -Ahem, Rolf and Dale, your comments on this subject should be of interest to us all.
Regards,
Steve
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