Heya fellow forumites,
Does anyone know of any Wrap deals going around the perth metro area atm?
Does anyone know of any Wrap deals going around the perth metro area atm?
WRAPS in Perth
- Thread starter Mine Medic
- Start date
then i'd better keep my mouth shut. I have seen a few floating around my local area.
Yeah I am seeing if there any around, if so where could I find details about them and I am also curious how it is that they work exactly, I read a steve mcknights book and he mentioned it being a another avenue for buying houses.
Mine Medic said:
I'd never do one, but I can see how they'd work in wheatbelt or mining towns where the mortgage won't be much different from rent payments.
Capital cities (where the rent-mortgage difference is great) would be a lot harder unless the wrappee had a high income he didn't want to tell the bank about. Nevertheless you still see little ads in the Trading Post etc on vendor finance deals.
One risk is that if you wrap a country property and its value doubles, then you don't have the capital gain.
One previous exponent of wrapping (Rick Otton - do a search here) seems to be spruking 'lease options' rather than wraps these days.
I have a question for all wrappers.
What happens to the wrappee and his/her legal claim over the property if the wrapper defaults in some way with his/her lender/financer? How are these people protected against a wrapper who goes under?
Simon
What happens to the wrappee and his/her legal claim over the property if the wrapper defaults in some way with his/her lender/financer? How are these people protected against a wrapper who goes under?
Simon
Hi,
Who said wraps were illegal in W.A.? What is the basis of this viewpoint?
(I know the answers, but I would like this independantly verified).
Simon/Julie, I see a trend where, everytime there is a question about wraps asked, you ask this question, and I respond. While I do respect your acheivements in buy & hold, and renovation. And I admire you for getting out of the rat race. I do not respect this campaign of yours of posing (the same) "innocent" question each time the opportunity represents itself.
Pointing, without providing positive input, ranks you down there with others I know who claim to be consumer advocates.
In answer to your question (again). When you place your money with anyone (Ansett, Onetel, HIH, etc, Bank of South Australia, Home Fund, Westpoint etc), you expose yourself to risk.
What is the biggest risk for a wrappee? Will the wrapper service the mortgage? Ok, we'll let's think about it for a minute, what needs to happen to "ensure" that the 1st mortgage is paid. Wouldn't that be, make sure the funds the wrappee pays, first go towards the 1st mortgage, then let the wrapper take his/her cut.
Ok, we'll wouldn't a joint account, with co-signed periodic debits and transfers solve this?
That's my answer, and I guess if you've thought about this for some (almost 5 years now according to the posts below) so I would be interested to hear your input.
http://www.somersoft.com/forums/showpost.php?p=19815&postcount=1
Regards
Michael G
Who said wraps were illegal in W.A.? What is the basis of this viewpoint?
(I know the answers, but I would like this independantly verified).
Simon/Julie, I see a trend where, everytime there is a question about wraps asked, you ask this question, and I respond. While I do respect your acheivements in buy & hold, and renovation. And I admire you for getting out of the rat race. I do not respect this campaign of yours of posing (the same) "innocent" question each time the opportunity represents itself.
Pointing, without providing positive input, ranks you down there with others I know who claim to be consumer advocates.
In answer to your question (again). When you place your money with anyone (Ansett, Onetel, HIH, etc, Bank of South Australia, Home Fund, Westpoint etc), you expose yourself to risk.
What is the biggest risk for a wrappee? Will the wrapper service the mortgage? Ok, we'll let's think about it for a minute, what needs to happen to "ensure" that the 1st mortgage is paid. Wouldn't that be, make sure the funds the wrappee pays, first go towards the 1st mortgage, then let the wrapper take his/her cut.
Ok, we'll wouldn't a joint account, with co-signed periodic debits and transfers solve this?
That's my answer, and I guess if you've thought about this for some (almost 5 years now according to the posts below) so I would be interested to hear your input.
http://www.somersoft.com/forums/showpost.php?p=19815&postcount=1
Regards
Michael G
Hi Michael G
I am sorry if I sound a bit like a broken record. Your answer to my question was based on financial default and it was a good answer too. Thank you.
The original question you stated above was from Julie and yes it did relate to financial protection however the post that I started a while back " A question for wrappers" was left unanswered in regard to fraud and other forms of default.There is currently an investigation in NZ into a women wrapper/mortgage broker who defaulted on a number of properties by giving fraudulent information to the lender and thus the poor old wrappee's got forclosed on. I know this because one of my sons was a victim in the process. I am sorry if you are frustrated with my question but I hope you may understand where it is coming from now.
Kind regards
Simon
I am sorry if I sound a bit like a broken record. Your answer to my question was based on financial default and it was a good answer too. Thank you.
The original question you stated above was from Julie and yes it did relate to financial protection however the post that I started a while back " A question for wrappers" was left unanswered in regard to fraud and other forms of default.There is currently an investigation in NZ into a women wrapper/mortgage broker who defaulted on a number of properties by giving fraudulent information to the lender and thus the poor old wrappee's got forclosed on. I know this because one of my sons was a victim in the process. I am sorry if you are frustrated with my question but I hope you may understand where it is coming from now.
Kind regards
Simon
Last edited:
Hi,
Yes, that is different. In hindsight....the only thing that "may have" been done is for the wrappee's solicitor to have performed a background check on the wrapper (checked structure company), however I believe the focus would have been more on the contract itself.
The nature of the wrap is that the wrapper is effectively a guarantor in case of default of the wrappee. I guess from that point of view, the question must be asked what can be done by the wrappee, maybe seek an alternative guarantor, advertise or seek out a more stable wrapper to take over the liability.
In America where notes (instalment payment liabilities) are traded like shares, it may have been possible.
Or have the wrappee's solicitor negotiate with the bank to accept a transfer of title to someone else.
However by the sounds of it, the horse has bolted. Unfortunately there are people in every industry who seek to scam and defraud others, I just hope people do not believe that what has happened here is a reflection of the whole vendor financing industry.
Regards
Michael
Yes, that is different. In hindsight....the only thing that "may have" been done is for the wrappee's solicitor to have performed a background check on the wrapper (checked structure company), however I believe the focus would have been more on the contract itself.
The nature of the wrap is that the wrapper is effectively a guarantor in case of default of the wrappee. I guess from that point of view, the question must be asked what can be done by the wrappee, maybe seek an alternative guarantor, advertise or seek out a more stable wrapper to take over the liability.
In America where notes (instalment payment liabilities) are traded like shares, it may have been possible.
Or have the wrappee's solicitor negotiate with the bank to accept a transfer of title to someone else.
However by the sounds of it, the horse has bolted. Unfortunately there are people in every industry who seek to scam and defraud others, I just hope people do not believe that what has happened here is a reflection of the whole vendor financing industry.
Regards
Michael
Some very interesting conversation going on here, I gather everyone has forgot my original question or there are no deals floating around.
What exactly are you asking Mine Medic ??? Deals 'floationg' around ?
Do you want to buy a property and wrap it, or do you want to find a wrapper to organise a property for you to buy as the wrapee ?
I am sure you will not find any deals floating around on this forum.....as it is not the format for persons to advertise their deals.
I would recommend you have a look at Rick Otton's site, as there is a forum there, alternatively if you want to query someone specifically in WA, I would recommend jscott as a person worth a PM or email.
Maybe request a link to his website which is a wealth of information.
kp
Do you want to buy a property and wrap it, or do you want to find a wrapper to organise a property for you to buy as the wrapee ?
I am sure you will not find any deals floating around on this forum.....as it is not the format for persons to advertise their deals.
I would recommend you have a look at Rick Otton's site, as there is a forum there, alternatively if you want to query someone specifically in WA, I would recommend jscott as a person worth a PM or email.
Maybe request a link to his website which is a wealth of information.
kp
michaelg
"who said wraps are illegal in W.A"
I am 100% sure l read it in a property book/mag/forum in the last 2 years.
Which one , l am not sure
Sorry l cannot verify this for you at the moment, but as l am re reading quite a few of my books at the moment l may come across it, if so l will certainly let you know.
cheers yadreamin
"who said wraps are illegal in W.A"
I am 100% sure l read it in a property book/mag/forum in the last 2 years.
Which one , l am not sure
Sorry l cannot verify this for you at the moment, but as l am re reading quite a few of my books at the moment l may come across it, if so l will certainly let you know.
cheers yadreamin
yadreamin,
As jscott explainerd earlier, they are not illegal as long as you have a credit providers licence.
These are issued by DOCEP.
What is illegal is to provide vendor finance in WA without a licence.
In some states you can vendor finance without a licence, but it is still advisable to get one.
In WA it is mandatory to have the licence before you can operate.
As also suggested, you can achieve a very similar outcome by doing a lease option instead. This does not require the DOCEP issued CPL....ie.. anyone can do it.
kp
As jscott explainerd earlier, they are not illegal as long as you have a credit providers licence.
These are issued by DOCEP.
What is illegal is to provide vendor finance in WA without a licence.
In some states you can vendor finance without a licence, but it is still advisable to get one.
In WA it is mandatory to have the licence before you can operate.
As also suggested, you can achieve a very similar outcome by doing a lease option instead. This does not require the DOCEP issued CPL....ie.. anyone can do it.
kp
