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From: Duncan M


Is the Real Estate Agent part of this 'Team' ? How does the receipt for a $56K deposit get generated?

Regards,


Duncan.
 
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Reply: 1
From: Always Learning


Sound's like it would hold water ;-)
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But wait; isn't this the "Property Investor Forum", not the Alan B..d creative accountancy and asset stripping forum?
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My broker tells me he can get finance without a valuation on properties in this bracket.
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If this is true, I have a house of cards I want to flip. I could buy up some 20K houses in Burnie in Tas, then flip them to person B for 120K who can get finance without a valuation, I can walk away with 100K a pop!
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And I am not even remotely imaginative, I am sure someone could come up with a much more profitable ways of extracting money from lenders who don't do the most fundamental form of due diligence. That must be one hell of a low doc's product.
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So if this works and you are not breaking any fraud/deception laws, maybe this is right for you! I think it is possible to build wealth via much more moral and reasonable methods.
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Michael Yardney's latest Property Investment Update, gives an example of a very reasonable plan of one of his customers, to buy, redevelop ( 2 units in Richmond Vic), and refinance giving a profit of 200K which allows the developer to hold via finance only. How about that! a moral, legal and legitimate way to build wealth which offers better results!
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Imagine I posted an message recommended that everyone could get free petrol, via siphoning it out of bankers BMW's whilst they were out on a long boozy lunch? Some would say they deserve it, but it doesn't make it right.
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This is forum is about capitalism; building wealth, not siphoning it off! Come over to Japan to see the legacy upon one of the worlds greatest economies when siphoning get's out of hand!
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Reply: 1.1
From: W W


Dear Annon

Good stuff. This is what I like to hear, creative thinking.

Yes, I believe some banks don't require a valuation to be done if the property is in a capital city, the LVR is below 80% and the property is purchased thru a real estate agent. Some also stipulate it must not be a related entity, ie you selling it to your company etc. But the limit that I am aware of with the bank I am thinking of (Macquarie Bank) is anything under $200,000. Anything over needs a valuation. But there are hundreds of lenders out there.

There is also extra costs in capital gains and stamp duty.

But this method can, and does, work.

Passive
 
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Reply: 1.1.1
From: Always Learning


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Member B has the ability to obtain a receipt from an agent as testament to the fact that a 20% deposit has been received (56K)

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As Ducan alluded too, assuming that this is a licensed realestate agent I would assume that either:

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<li> This is against the law ie. creating of bogus receipts or certifying such exist!

<li> This is against the real-estate agents code-of-conduct regulations. (OK given my experiences with agents, this is more a flexible set of guidelines)

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At the very minimum this is a very slick practice. If it works and it is legal and this is OK with you and you accept the inherent risks involved then go for it! I just think there are better ways.
 
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