Wrap Pack from Rick Otton (creativerealestate.com.

From: Khurram Saeed


Hi Guys and Gals
I have searched the PIF, but could not find anything on Rick Otton's Wrap Pack.
I found heaps of information on What a wrap is and how to do one...thanks to Michael G and others.
But no one mentiooned if they had bought this Wrap Pack product? Is it a Investment seminar? Or books? or CDs? Tapes?

And whatever it is, is it worth the money = $1695.

Thanks to all who reply
Khurram
 
Last edited by a moderator:
Reply: 1
From: Alan Hill


I thought Dale put up a bit of a review on one of the Wrap Packs some time back......can't remember if it was Rick's though.

Was that you Dale?



:)
 
Last edited by a moderator:
Reply: 1.1
From: Dale Gatherum-Goss


Hi

yes, I had a quick look at both Rick's and Steve's manuals. Both are excellent but, I preferred Rick's given that it provided a lot more valuable "how to do this" and "what to do here" style information. The tapes are good and I have no doubt that using the manual will make the whole wrap process easier to do and make money quicker than you would if you re-created the wheel yourself.

Cheers

Dale
 
Last edited by a moderator:
Reply: 1.1.1
From: J Parker


If you are serious about getting into wraps then Rick's pack is excellent. It is a step by step process that takes the mystery away from the process and simplifies it. Rick and Jane are very experienced wrappers, having done them in the USA and here. They are practical, enthusiastic and their manual and accompanying tapes are very easy to listen to and comprehend.

As for the price, well, it's up to you. If you are ultra keen and want to learn then you are going to have to fork out money eventually. Whether or not you consider it value for money is totally up to you!
Cheers, Jacque :)
 
Last edited by a moderator:
Reply: 1.1.1.1
From: Khurram Saeed


Hi All

I am extremely open minded on all of this...so any help would be very nice.

I was reading the previous posts, and what I can gather is that, You must buy in areas where the RENT is higher then the BANK repayments on the same amount..so when the TENANT pays you the monthly installments, they dont feel the brunt because they have been paying the high RENT already. My question is why not just buy normally and rent out the place...i am confused have a missed anything?

Khurram
 
Last edited by a moderator:
Reply: 1.1.1.1.1
From: Les .



G'day Khurram,

The major points re "why would you do this?" would be:-

1. If the "tenants" are BUYING from you, then they are less likely to trash the place.

2. Since they are BUYING, they are not likely to do a "moonlight flit".

3. Where they are paying less than rent, AND buying the place into the bargain, they are more likely to spend their spare hard-earned on improvements, thus increasing their attachment to the place.

4. Because of the above, you save on RE fees, you enjoy a positive cashflow, have less hassles (tenants less likely to phone you to replace a light bulb, etc.)

Some of the experienced wrappers (Rick, Steve, Michael, Yuch, etc.) may well have much more to offer.

Regards,


Les


- "Eschew Obfuscation" - ;^)
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1.1.2
From: Darren B


Khurran. The people are not tenants, they are owners. I wrap because I find the whole landlording to be a right pain in the backside. The new owners make all the repairs, maintenance, not me. The repayments I get are much higher than a traditional rental. Also, I get a nice deposit from them and a nice thankyou 7k from the government. Most times the deposit is equal to what it cost me to buy the joint, including stamp duty, legals etc etc. This gives me the flexibility to do more & more, with less of my own money as possible.
 
Last edited by a moderator:
Reply: 1.1.1.1.2.1
From: Greg Mowat


Khurran,

Maybe the best way to explain it is with some numbers.

We recently wrapped a place in S/East Suburb of Melb.
Bought if for 114000 would rent for $165 on 100% finance. After rates, insurance etc would be negatively geared by $10/wk

Sold it in a wrap contract for $147000 @ Suncorp variable rate PLUS 2%. This means no risk on interest rate rises.
This now means it puts an additional $96 a week in our pocket AFTER our mortgage payments.
NOTE: No rates - covered by wrapee
No Insurance - covered by wrapee
No Outgoings - covered by wrapee
No Maintenance - covered by wrapee
PLUS they paid us a deposit AND the FHOG - $9000 cash to us
No RE agent fees - cost us $18.40 for classified advert in local paper. 52 responses.

If wrappee doesn't pay (even if only 1 day late) we can send them a letter to become TOTALLY current on payments within 30 days, this means no part payments.
If they don't we come in, move their stuff out, change the locks and resell the house.

If they do default then we have to pay them their equity position in the house however this is unlikely to be significant in the first few years.

As most contracts are refinanced after 3-5years then we are cashed out.

Great cashflow, limited risk.

Use it in conjunction with buy & hold in high growth areas

cheers
Greg
 
Last edited by a moderator:
Reply: 1.1.1.1.2.1.1
From: J Parker


Greg,

Did their repayments come in at around $230 per week? (not including rates insurance etc) Well done on such a good deal- keep it up! Hope it all continues to go well for you.
Cheers, Jacque :)
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1.1.2.1.1.1
From: Darren B


Who says that you have to pay there equity, if any, if they default. If they default, tough.
 
Last edited by a moderator:
Reply: 1.1.1.1.2.1.1.1.1
From: Greg Mowat


Consumer Credit Code says so in Vic.
This is to stop scammers and protect the wrappee.
Do you think you'd do many wraps if the wrappee was in a position where they've been in a place for 10-15years paid you $100-150k in principle and interest. then defaulted due to loss of job/interest rates of 18% and you could just take back the home and sell it again leaving them with nothing.

Logically they default within 12mths to 2 years. They are at the end of their cash so would be happy for you to pay them to move on and remove the pressure of the mortgage. Their equity position would be little if anything because it is based on market value not what they paid for it and you already built in a few years capital growth to your sale price.

Cheers
Greg
 
Last edited by a moderator:
Top