What's your view on wrapping - not a debate, a poll
- Thread starter Aceyducey
- Start date
Aceyducey
Noticed your signature, we had chinese takeaway for dinner and I bought the kids fortune cookies, the 6 yr old got that in hers and couldn't work out what it ment.
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Think like a man of action, act like a man of thought.
—Henry Bergson
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Any way back to wraps, had a look at it, decided I didn't want to do it. Not comfortable with it.
Had a look at buy/sell computer gear, not happy with that didn't like the small margin.
I'm lazy, getting rent is easier.
Quoll
Noticed your signature, we had chinese takeaway for dinner and I bought the kids fortune cookies, the 6 yr old got that in hers and couldn't work out what it ment.
***********************
Think like a man of action, act like a man of thought.
—Henry Bergson
***********************
Any way back to wraps, had a look at it, decided I didn't want to do it. Not comfortable with it.
Had a look at buy/sell computer gear, not happy with that didn't like the small margin.
I'm lazy, getting rent is easier.
Quoll
I did have trouble finding an option. None seemed to fit.
It's "sort of" an investment, in that you need $$$ to put in, and you should get $$$ back. Hopefully a little more than you put in.
Even despite that, I have gone much further than media and forum discussions. I travelled to Sydney especially to hear Rick's intro talk, and I have had some of his materials.
I regard his approach as quite ethical, and I would personally have not trouble implementing the stratgies he presents, in the way he presents them. And I do regard myself as a very ethical person.
But, in a bigger sense, I don't see the longer term benefit. A wrapper gives away a long term capital growth (and possibly income) in return for a short term benefit. I'd rather stick it out for the traditional "buy and hold" model.
Sorry, I couldn't find an option in the poll to match that.
It's "sort of" an investment, in that you need $$$ to put in, and you should get $$$ back. Hopefully a little more than you put in.
Even despite that, I have gone much further than media and forum discussions. I travelled to Sydney especially to hear Rick's intro talk, and I have had some of his materials.
I regard his approach as quite ethical, and I would personally have not trouble implementing the stratgies he presents, in the way he presents them. And I do regard myself as a very ethical person.
But, in a bigger sense, I don't see the longer term benefit. A wrapper gives away a long term capital growth (and possibly income) in return for a short term benefit. I'd rather stick it out for the traditional "buy and hold" model.
Sorry, I couldn't find an option in the poll to match that.
Quoll, I just had to reply to that....
I ran a computer component business in UK for 6 years, and sold it a year ago. It gave me a reasonable income for the last 5 years, but the really funny part is that I think I made a larger profit on the sale of the property that it operated from, than on the actual business.
Not sure which option to choose though I would lean towards the last one.
My "Rent Option" strategy is a variation of a wrap as far as I understand things. I learnt my strategy from Paul & Danny Hanna and feel very comfortable with it. Wouldn't do it otherwise. I feel that it is a win-win situation for all parties.
Cheers,
Bernard
My "Rent Option" strategy is a variation of a wrap as far as I understand things. I learnt my strategy from Paul & Danny Hanna and feel very comfortable with it. Wouldn't do it otherwise. I feel that it is a win-win situation for all parties.
Cheers,
Bernard
Quoll,
I have no idea what it means either - but it sounds as if it means something profound
Try it in another form:
Think like Schwarzennegar, Act like Einstein
........
Nah still means nothing
Who cares if the Emperor's wearing nothing, so long as his new clothes look great!
Cheers,
Aceyducey
My option isn't there.
'Wrapping is a great business oppurtunity but needs a lot of work to get it to a suitable level to give sufficient income that I require from a business'
Some time ago I researched the whole wrapping process this included reading all I could, speaking to as many people who were wrapping and even went allong to boot camp. Looked at joint venturing did business plans based on wrapping etc.
I saw wrapping as an active investment rather than a passive investment by this I mean that you need to keep going out and repeating the process to replace those wrappees that have refinanced to ensure that your income is maintained.
In the end I decided that due to my other business commitments I would not proceed with wrapping but certainly have not dismissed the idea entirely.
Cheers
HA
'Wrapping is a great business oppurtunity but needs a lot of work to get it to a suitable level to give sufficient income that I require from a business'
Some time ago I researched the whole wrapping process this included reading all I could, speaking to as many people who were wrapping and even went allong to boot camp. Looked at joint venturing did business plans based on wrapping etc.
I saw wrapping as an active investment rather than a passive investment by this I mean that you need to keep going out and repeating the process to replace those wrappees that have refinanced to ensure that your income is maintained.
In the end I decided that due to my other business commitments I would not proceed with wrapping but certainly have not dismissed the idea entirely.
Cheers
HA
I don't seem to fit any catagory. I have done some research but not extensive and I still don't feel I understand it properly. I think wrapping is like many business strategies, if used by unethical people it can be very distructive but used "properly" it benefits the wrappee and the wrapper. More regulation should be introduced to stop the sharks but I do think wrapping has had a lot of bad PR lately!
Robyne
Robyne
Hi
I've spoken to a few wrappers (not one myself - I'm not a banker ) and from what i've heard, they all seem to be reasonable people, with a reasonable aim, of making money on reasonable deals in property. 1 to 1.5 % above average lending rates after the deposit of 1st HBG + 1 or 2K. Seems reasonable.
I agree totally with comments about property as a business.
And business in property.
Had a small business and worked the backside off for 5 years, sold the business and made a reasonable profit. Didn't own the property.
Bought a small unit in Liverpol 4 years ago, and visited it twice in that whole time, and sold it this month for the same profit as the small business.
Will use the money to buy other small businesses (IP's ) in the future.
The people who run our small businesses (tennants) seem nice.
jahn
I've spoken to a few wrappers (not one myself - I'm not a banker ) and from what i've heard, they all seem to be reasonable people, with a reasonable aim, of making money on reasonable deals in property. 1 to 1.5 % above average lending rates after the deposit of 1st HBG + 1 or 2K. Seems reasonable.
I agree totally with comments about property as a business.
And business in property.
Had a small business and worked the backside off for 5 years, sold the business and made a reasonable profit. Didn't own the property.
Bought a small unit in Liverpol 4 years ago, and visited it twice in that whole time, and sold it this month for the same profit as the small business.
Will use the money to buy other small businesses (IP's ) in the future.
The people who run our small businesses (tennants) seem nice.
jahn
Wrapping
Acey - my apologies, I know you intended this as a poll but I have comments which stretch beyond the criteria you have so diligently established...
I have studied the process to some degree, and spoken with several experienced wrappers and solicitors (most of whom have opted not to offer vendor-finance specific services to their clients in light of the fact that it touches on use of the Consumer Credit Code).
I am about to do my first rent-option as an alternative - mostly beacause I want to create a successful situation for both parties, and don't feel that the long term agreements which are generally part of a wrapping suituation are practical enough for the tenant to visualise from the outset, which makes a rent-option more attractive to a prospective tenant/purchaser.
I agree with DaleGG and others' comments. At the hands of those who focus primarily on the intent of making money, a wrap can be a dangerous and somewhat litigous business arrangement, but hopefully those who are practising in this country are more intent on helping others live the Great Australian Dream, whilst secondarily having a go at building a property portfolio/passive income for themselves at the same time.
Ideally, one would think that a wrapper was intent on making a LITTLE money from each deal, repeating the process enough times to create an economy to support the rest of their property portfolio.
Thanks for the opportunity to comment, Acey
Acey - my apologies, I know you intended this as a poll but I have comments which stretch beyond the criteria you have so diligently established...
I have studied the process to some degree, and spoken with several experienced wrappers and solicitors (most of whom have opted not to offer vendor-finance specific services to their clients in light of the fact that it touches on use of the Consumer Credit Code).
I am about to do my first rent-option as an alternative - mostly beacause I want to create a successful situation for both parties, and don't feel that the long term agreements which are generally part of a wrapping suituation are practical enough for the tenant to visualise from the outset, which makes a rent-option more attractive to a prospective tenant/purchaser.
I agree with DaleGG and others' comments. At the hands of those who focus primarily on the intent of making money, a wrap can be a dangerous and somewhat litigous business arrangement, but hopefully those who are practising in this country are more intent on helping others live the Great Australian Dream, whilst secondarily having a go at building a property portfolio/passive income for themselves at the same time.
Ideally, one would think that a wrapper was intent on making a LITTLE money from each deal, repeating the process enough times to create an economy to support the rest of their property portfolio.
Thanks for the opportunity to comment, Acey
I personally wouldn't take the "wrap" option on a property, but don't have anything against those that do.
The main problem I can see with this is that it is open to use by the con-men of the world who can see a way to make any easy dollar out of those less fortunate.
So I suppose I fit into the category that feels this approach to "investment" needs a great deal of regulation to weed these people out.
Lisa
The main problem I can see with this is that it is open to use by the con-men of the world who can see a way to make any easy dollar out of those less fortunate.
So I suppose I fit into the category that feels this approach to "investment" needs a great deal of regulation to weed these people out.
Lisa
While accepting that many wrappers believe they are acting ethically, and are sincere in this belief, and have thought through why they have this belief, it is interesting to note the high percentage of voters so far who either think it is unethical or requires greater regulation. I accept also that wrappers themselves may believe there is a need for greater regulation.
I'd just like to make the point here that of all the large property scams in Australia in the last twenty years, none has involved wrapping.LisaS said:
You have areas including property marketeering, deposit bonds, (shoddy) building and Off-The-Plan flipping all represented, plus a few other areas.
Interesting isn't it that Wrapping is seen by certain segments of the public as open to use by Con-men (and women).
Whereas Con-artists themselves don't seem interested in the area....perhaps because people looking to wrap go in with their detectors on & Con-artists get caught out very fast.
Con-artists have more lucrative ways to scam people out of their money in the areas that people trust.
Cheers,
Aceyducey
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Return versus time & $$$
Hi all
I have no problems with wraps.
Though my feelings are that it is a lot of work for what i consider minimun return. (YES I will get hounded down on that point).
I just like to get into a project, finish it, sell it.
Take my dollars, enjoy the fruits now and move onto the next.
Minimun fuss / Max $$
Gee Cee
Hi all
I have no problems with wraps.
Though my feelings are that it is a lot of work for what i consider minimun return. (YES I will get hounded down on that point).
I just like to get into a project, finish it, sell it.
Take my dollars, enjoy the fruits now and move onto the next.
Minimun fuss / Max $$
Gee Cee
Because the product we are talking about at Somersoft IS property Astroboyastroboy said:
You might try to claim that Wrapping is different to property investing - but if so you're looking at a very narrow definition of what IS property investing....much narrower than most people on this forum.
Do you also exclude Property Development & Flipping where you sell the property & therefore it's not an investment asset as such, it's a trading asset?
Do you exclude discussions about financing loans - because that's not strictly about property investing, it's about financing property.....
I'm quite comfortable with Wraps & Lease-Options being in the property camp - where they involve property as the 'product'!
Cheers,
Aceyducey
