David and Julie Siacci

[Andy Pandy]

Anyone heard of these guys? What is their model?

ANdy P


Husband and Wife Team Stumble Upon a Cash Flow For Life Real Estate Strategy By Accident and "Sack The Banks" Forever!
Let me introduce you to David and Julie Siacci...
They have a typical property investing story. They were going along fine on the negative-gearing path, thinking they were on the way to wealth until that life-changing day where they went to the bank to borrow more money for another investment... and the bank said, "No".
David and Julie had two choices then... To simply accept what the bank had told them, go back home and live a life of quiet desperation in the hope that their portfolio would pay off in 20 years.
Or... Find a solution to continue to invest and make money via real estate, without the banks.
Here's the amazing result of that story... That was 45 property transactions ago.
What if we could wave a magic wand and solve your greatest challenge that is stopping you from getting started in real estate today. Not the warm and fuzzy problems like “mindset” - hard core reasons such as...
You can’t get bank finance
Bankrupt and a shocking CRA report
You don’t have money for a deposit
Negative cash flow
Can’t find positive cash flow real estate
Wrong time in the cycle to buy
Stamp duty, legals, mortgage fees and other buying costs
Discover How To SMASH 7 Major Challenges That Are Stopping 97% of The Population From Making a Killing In Today's Uncertain Real Estate Market... New, Tested and Step-By-Step-System Designed to Make HUGE GAINS and CASH FLOW Right Now!
Here's a small snapshot of what David and Julie Siacci will Reveal at cash Flow For Life . . .
So the banks have told you NO! Your goal is to become a property investor and you don't know where to start. They will show you exactly what you need to do to own a multi-million dollar property portfolio...even if you have little money to get started.
REVEALED: Their COMPLETE Property Financing Systems, Yes! They will show you them all and I won't be holding anything back.
EXPLODED: The passive income myth

 

[Piston Broke]

lol it's vendor finance (buying & selling), but dont tell anyone it's a secret...
Also known as "wrapping".

 

[Savanna100]

They are students of Rick Otton, I heard them give a presentation at the April boot camp in 2008. They have done quite well via lease options and all the techniques that Rick teaches.

 

[josko]

Hi Andy Pandy,

Yep, Vendor Finance. Nothing new there.

Regards JO

 

[jingo]

lol it's vendor finance (buying & selling), but dont tell anyone it's a secret...
Also known as "wrapping".

It's an interesting strategy. Not sure I'd want to use it from the very beginning though. Could be useful to reduce debt on an existing IP portfolio.

Is anyone currently using this technique? Could be good to gain some ideas from others.

Regards Jason.

 

[willair]

Anyone heard of these guys? What is their model?

ANdy P


Husband and Wife Team Stumble Upon a Cash Flow For Life Real Estate Strategy By Accident and "Sack The Banks" Forever!
Let me introduce you to David and Julie Siacci...
They have a typical property investing story. They were going along fine on the negative-gearing path, thinking they were on the way to wealth until that life-changing day where they went to the bank to borrow more money for another investment... and the bank said, "No".
David and Julie had two choices then... To simply accept what the bank had told them, go back home and live a life of quiet desperation in the hope that their portfolio would pay off in 20 years.
Or... Find a solution to continue to invest and make money via real estate, without the banks.
Here's the amazing result of that story... That was 45 property transactions ago.
What if we could wave a magic wand and solve your greatest challenge that is stopping you from getting started in real estate today. Not the warm and fuzzy problems like “mindset” - hard core reasons such as...
You can’t get bank finance
Bankrupt and a shocking CRA report
You don’t have money for a deposit
Negative cash flow
Can’t find positive cash flow real estate
Wrong time in the cycle to buy
Stamp duty, legals, mortgage fees and other buying costs
Discover How To SMASH 7 Major Challenges That Are Stopping 97% of The Population From Making a Killing In Today's Uncertain Real Estate Market... New, Tested and Step-By-Step-System Designed to Make HUGE GAINS and CASH FLOW Right Now!
Here's a small snapshot of what David and Julie Siacci will Reveal at cash Flow For Life . . .
So the banks have told you NO! Your goal is to become a property investor and you don't know where to start. They will show you exactly what you need to do to own a multi-million dollar property portfolio...even if you have little money to get started.
REVEALED: Their COMPLETE Property Financing Systems, Yes! They will show you them all and I won't be holding anything back.
EXPLODED: The passive income myth

What makes this system any different from all the other systems that are
out there??,and what is the cost??willair..

 

[Piston Broke]

They have done quite well via lease options and all the techniques that Rick teaches.

I'd like to see a P/L and balance sheet for what you (and them) describe as "quite well"

 

[Token Funder]

What makes this system any different from all the other systems that are
out there??,and what is the cost??willair..

Well, apparently they've discovered the 7 Major Challenges That Are Stopping 97% of The Population From Making a Killing In Today's Uncertain Real Estate Market!!

My understanding is that, in fact, they are identical to the 7 Signs of Aging AND the 7 Signs of the Apocolypse and that as aresult the Siaccis are being sued by both the manufacters of Oil of Olay AND the Pope.

 

[boods99]

....and I bet my left one that they still borrow from banks to fund their deals...so could someone here please explain to me how they have "sacked the bank"?

And while were on this topic, can someone please explain to me what the bank's attitude is towards wraps as I would have thought that in today's lending environment where banks are constantly trying to find ways to not lend people money, these sorts of deals would be kind of "on the nose" to them...

What do you reckon TF??

Boods

 

[Token Funder]

....and I bet my left one that they still borrow from banks to fund their deals...so could someone here please explain to me how they have "sacked the bank"?

And while were on this topic, can someone please explain to me what the bank's attitude is towards wraps as I would have thought that in today's lending environment where banks are constantly trying to find ways to not lend people money, these sorts of deals would be kind of "on the nose" to them...

What do you reckon TF??

Boods

As a generalisation, banks won't knowlingly lend on a wrap. Essentially, you have a potentially compromised security.

 

[Savanna100]

I'd like to see a P/L and balance sheet for what you (and them) describe as "quite well"

They stated at the presentation that they no longer require employment. That is definitely the start of "quite well"

 

[Savanna100]

..:

And while were on this topic, can someone please explain to me what the bank's attitude is towards wraps as I would have thought that in today's lending environment where banks are constantly trying to find ways to not lend people money, these sorts of deals would be kind of "on the nose" to them...

What do you reckon TF??

Boods

Even in good times, banks didnt really like wraps. each mortgage has a 'due on sale' clause which means if you assign your interest by way of a lease -option type arrangement and the bank finds out, they can get narky and the whole loan becomes due. I've never heard of it happeneing, i just know that it is legally possible.

 

[boods99]

Even in good times, banks didnt really like wraps. each mortgage has a 'due on sale' clause which means if you assign your interest by way of a lease -option type arrangement and the bank finds out, they can get narky and the whole loan becomes due. I've never heard of it happeneing, i just know that it is legally possible.

So what would be the contingency put in place should this happen? Don't tell the banks?
What happens when the banks call in the loan for some reason, maybe for default on loan should the borrower decide that they dont want to make payments or can't afford to make payments/bankruptcy?
What happens to the purchaser's equity that they have built up into the property if this eventuates?
What happens to the "wrapee" when the bank sells as a mortgagee sale?

Questions, questions, questions...

Boods

 

[Savanna100]

Yes, I had these questions when I went to the boot camp in 2008. basically, make sure you can meet the repayments in case your lease-optioner defaults, dont tell the bank what you are doing and act swiftly to evict at default,
It is a well thought out system, there is a lease option and a residential lease in place and the whole thing must be well managed, Also, you do get an up front payment in the form of a deposit which the lease-optioner/tenant forfeits if they default.

There is a lot to learn to make the system work and I simply was too busy running my planning practice to go into it at the time. I went to learn the technique for a specific reason which i will put to good use when I become a developer

 

[willair]

They stated at the presentation that they no longer require employment. That is definitely the start of "quite well"

Yet despite what they say,all people that stand up on the soap box say the same things,like a riddle wrapped in a mystery inside an enigma and most times the enigma is the result of the outsiders failure to understand them in the first place..willair..

 

[boods99]

Yes, I had these questions when I went to the boot camp in 2008. basically, make sure you can meet the repayments in case your lease-optioner defaults, dont tell the bank what you are doing and act swiftly to evict at default,
It is a well thought out system, there is a lease option and a residential lease in place and the whole thing must be well managed, Also, you do get an up front payment in the form of a deposit which the lease-optioner/tenant forfeits if they default.

There is a lot to learn to make the system work and I simply was too busy running my planning practice to go into it at the time. I went to learn the technique for a specific reason which i will put to good use when I become a developer

...so if you are witholding relevant information from the banks of the nature that would probably alter your chance of obtaining finance, would you not consider this to be at the very least misleading, at worst fraudulent?

Also, I'm still a little concerned as to what would happen to the purchaser's equity when the bank forcloses through no fault of theirs, rather a defaulting owner/landlord/wrapper

Boods

 

[Savanna100]

...so if you are witholding relevant information from the banks of the nature that would probably alter your chance of obtaining finance, would you not consider this to be at the very least misleading, at worst fraudulent?

Also, I'm still a little concerned as to what would happen to the purchaser's equity when the bank forcloses through no fault of theirs, rather a defaulting owner/landlord/wrapper

Boods

Yes, it sounds fraudulent but the attitude seemed to be that, so long as mortgages were repaid, the issue of triggering the due-on-sale clause shouldnt arise.

In regard to your other question, the purchaser's equity would be at risk as you point out but the whole point of the exercise is that you dont go into wrapping if you are likely to not be able to conduct the process and yourself in a manner which would prevent it from all falling in a heap.

Helpfully, in terms of staying on top of things, the money you charge your tenant is always more than the mortgage repayment and you should ensure that you make the payments because, after all, the property is still in your name until the sale is settled some years after the exchange/lease has been effected/commenced.

If you are interested in the nuts and bolts, go to the annual boot camp, There is a lot to learn and I got a lot out of it I can use in the future so it was worth the then $2000 plus to attend. Its not the only way to make money in property and, it can seemly be quite a slow way, compared to some other methods but its part of the wonderful world of property investment and seems to be entirely legal.

One of the other questions I had surounded the issue of "selling a property you dont own"...something structly illegal under the Property Stock and Business Agents Act 2002 (NSW) (and similar laws in other states). Wrappers need to do this sort of thing a lot of the time too.

 

[Tamira]

Get a life, people!

Hi Andy Pandy,

It seems to me that lots of people has nothing better to do, than making totaly uninformed comments. I just don't understand why can't they find some other stupid hobby for themselves.
Anyway. Don't forget: You should only follow people who already achieved what you want to achieve! (And clearly enough most of these people will never do! All talk ......)

So back to the topic, Julie and David Siacci learned the trade from Rick Otton and all they did is follow the steps what they've been thought. That is the only secret to success.
Choose what you want to do, find the master of that field, learn the trade from the best at the field, don't change the system, do it yourself.!

That's it, works all the time.

Good Luck: Tamira

 

[boods99]

Hi Andy Pandy,

It seems to me that lots of people has nothing better to do, than making totaly uninformed comments. I just don't understand why can't they find some other stupid hobby for themselves.
Anyway. Don't forget: You should only follow people who already achieved what you want to achieve! (And clearly enough most of these people will never do! All talk ......)

I would hazard a guess that there are some very informed people on these forums especially in the field of finance and what can and can't be done (legally) as far as wraps are concerned. We have yet to hear from anyone involved in these deals as to how they obtain finance for wraps without fully disclosing to the lender the details of the deal.

...so...accept the challenge and let us know without turning to the old "don't listen to the naysayers/uninformed/negativity" excuse...

Boods

 

[Lofty]

Hi All

Yep, if you go by the average mortgage documentation you can't do it. No more argument about that.

We then had to make a business decision based on a few factors:
1. From above, you can't
2. Most mortgage documents also say that you must get the lenders permission to lease the property. Most people don't
3. A lot of mortgage documents also say you must get the lenders permission before you sell the property. No one does
4. Are the banks likely to call in the loan if the payments on the loan have been perfect? This can be achieved by having the wrappees payments paid straight into the non redraw home loan.
5. Knowing that two of the major banks in Australia have given mult million dollar lines of credit to two vendor finaciers we know, in the full knowledged that the properties bought with these lines of credit were going to be sold with vendor finance.

We looked at the above and made our business decision in 2003. Karen and I now work full time in our vendor finance business, so I guess that gives away what decision we made ;-)

It might also be worth talking with our wrapees, to see what they think about someone giving them the opportunity to own their own home. Something they'd previously been locked out of, for henious crimes such as a couple of unpaid telco bills. These are solid people and a lot of them have now refinanced back into the traditional home lending system. It's a great "stepping stone" arrangement and I believe it will only get better as the Vendor Finance Association of Australia grows and the new Australian Credit Licence comes into force.

Cheers, Paul