Hi All
Karen and I had our first wrapees move in in March 2004. We have now completed 13 vendor finance projects and have loved every minute of the ride ;-) It's been a great learning curve and we must admit that both Rick's Wrap Pack and Steve's Wrap Kit have been a great help.
By sticking with it, we're now in a situation that investors are coming to us wanting to do "turn key" joint ventures and vendor financing training joint ventures with us. A situation we would have thought of as almost unbelievable back in 2004
To give you an idea of what's possible in a couple of years, here's what we're up to at the moment:
1. Just exchanged on a wrap training JV which we are just begining to market
2. Getting finance for a new wrap training JV partner for a property we already have wrapees for.
3. Just coming up to "possession day" for some new wrapees as a result of a negative2positive training JV we're doing with a couple who want to get out from under their negatively geared IP and learn wrapping at the same time.
4. Marketing a training negative2positive JV property for a couple in a similar situation.
We bought our first wrap property towards the end of 2003 so we've now experienced wrapping in quite a variety of market conditions. For us, there are advantages and disadvantages in wrapping in both hot and slow/declining markets.
As MichaelG and Yuch are prominent members of the Vendor Finance (Wraps) Association of Australia, I'd also suggest you ask their opinion. I'm sure you'll hear from them that there are some strick guidelines you have to abide by as Wrappers. This is because Wrappers, i.e. persons who on sell property via an Instalment Sales Contract, are regarded as suppliers of credit and therefore have to abide by the Uniform Consumer Credit Code.
It's not a perfect investment proposition but what is? For us, it's a medium term cashflow business that supplies money for real wealth creation, i.e. accumulating equity in property
Good luck.
Cheers, Paul
