Wraps
- Thread starter plaster
- Start date
plaster,
try searching for wraps and lease options using the search function at the top of the page. There are a lot of people here that have done wraps and lease options, and a lot has been written about both. Try searching, and if you can't find anything that answers your questions, then try posting.
I know because I'm one of them.
Regards,
Boyler Room
try searching for wraps and lease options using the search function at the top of the page. There are a lot of people here that have done wraps and lease options, and a lot has been written about both. Try searching, and if you can't find anything that answers your questions, then try posting.
I know because I'm one of them.
Regards,
Boyler Room
Hi plaster
Sorry, missed this thread previously!
Yes I have done a wrap deal, quite a few of them.
The hardest thing for me has been to find an ongoing source of finance to buy the houses in the first place! That, plus finding investors to fund the 20% deposits.
But thinking back to the early few, the hardest part was believing I could do it. I stuck to the rules in Rick Otton's wrap pack (mostly... ahem) and found I could. I didn't always turn them around in a week or two, but I did wrap them.
Further down the track now, my biggest current problem is probably my one defaulter, he pays a bit, then he misses a few, then he pays a bit, then he misses a few. I should have been tougher on him a long time ago, so I've learnt from that.
Time to go and send him a rescission notice I think....
Sorry, missed this thread previously!
Yes I have done a wrap deal, quite a few of them.
The hardest thing for me has been to find an ongoing source of finance to buy the houses in the first place! That, plus finding investors to fund the 20% deposits.
But thinking back to the early few, the hardest part was believing I could do it. I stuck to the rules in Rick Otton's wrap pack (mostly... ahem) and found I could. I didn't always turn them around in a week or two, but I did wrap them.
Further down the track now, my biggest current problem is probably my one defaulter, he pays a bit, then he misses a few, then he pays a bit, then he misses a few. I should have been tougher on him a long time ago, so I've learnt from that.
Time to go and send him a rescission notice I think....
Hi,
Sorry, the question you asked I've answered many times over. Do a search for "wrap" and "michaelg" there is an abundance of info in here from me, everything from the steps to the problems to the solutions. If there is something I've written you don't understand, ask me and I'll clarify thus building upon what is already written rather than repeating what is already said.
Have fun, there a lot in here.
Michael G
Sorry, the question you asked I've answered many times over. Do a search for "wrap" and "michaelg" there is an abundance of info in here from me, everything from the steps to the problems to the solutions. If there is something I've written you don't understand, ask me and I'll clarify thus building upon what is already written rather than repeating what is already said.
Have fun, there a lot in here.
Michael G
Hi Plaster
I meant that at some point my own equity ran out, and I started sourcing investors for the 20% deposits.
As for how long wraps took to do - well, anything from one hour to 3 months, depending on the house! Persistence is a very necessary characteristic! hehehe
And Michael - love your tag line!!!!! ROFL ROFL ROFL
I meant that at some point my own equity ran out, and I started sourcing investors for the 20% deposits.
As for how long wraps took to do - well, anything from one hour to 3 months, depending on the house! Persistence is a very necessary characteristic! hehehe
And Michael - love your tag line!!!!! ROFL ROFL ROFL
Hi Plaster,
There will be a Vendor Finance Association meeting coming up in Perth in the first week of May.
Why don't you come along and have a chat with other experienced wrappers in WA? Plus, VFA has organised guest speakers to speak to our members too.
For details, visit www.financewraps.asn.au
There will be a Vendor Finance Association meeting coming up in Perth in the first week of May.
Why don't you come along and have a chat with other experienced wrappers in WA? Plus, VFA has organised guest speakers to speak to our members too.
For details, visit www.financewraps.asn.au
hi all,
I am a little bit of a virgin when it comes to wraps - heard the term and saw rick otton doco a couple of weeks back.
How much capital do you need to get started in doing this? obviously you have to provide vendor finance to the client this capital needs to come from somewhere? is there a link on the forum that explains the basics of a a wrap? (maybe aseyducey you could can tell me of a good one...)
briefly - on wraps where do you make the money? the intial sale and the difference between your 'wholesale' interest rate on the capital and the 'vendor' interest rate? Do you need goons to go around and muscle the purchasor for outsidanding debts? from what i've heard you could liken wrappers to loan sharks.... how do you write off you gains for CGT, what are you tax liabilities... are there any good books which one can read.
keg75
I am a little bit of a virgin when it comes to wraps - heard the term and saw rick otton doco a couple of weeks back.
How much capital do you need to get started in doing this? obviously you have to provide vendor finance to the client this capital needs to come from somewhere? is there a link on the forum that explains the basics of a a wrap? (maybe aseyducey you could can tell me of a good one...)
briefly - on wraps where do you make the money? the intial sale and the difference between your 'wholesale' interest rate on the capital and the 'vendor' interest rate? Do you need goons to go around and muscle the purchasor for outsidanding debts? from what i've heard you could liken wrappers to loan sharks....
how do you write off you gains for CGT, what are you tax liabilities... are there any good books which one can read.keg75
keg75,
As was suggested previously, use the search function at the top of the page, and type in wraps.
There is a mountain of information already on the forum about wraps and similar.
Regards,
Boyler Room
As was suggested previously, use the search function at the top of the page, and type in wraps.
There is a mountain of information already on the forum about wraps and similar.
Regards,
Boyler Room
i know about the search function but I have found that you read a packet of stuff and don't really get anywhere - I just asked as someone may have seen a good post and was still subscribed to it. I typed in trusts the other day and found a heap of stuff.... started reading and fell asleep - hehe.
I will check out the search function unless someone has a juicy post on a brief wrap outline.
Cheers for you response though
take care keg75
I will check out the search function unless someone has a juicy post on a brief wrap outline.
Cheers for you response though
take care keg75
Wrap Explanation
Hi Keg75
You'll find a pretty good explanation of wraps at:
http://www.propertyinvesting.com/strategies/wraps.html
I hope this helps.
Cheers, Paul
Hi Keg75
You'll find a pretty good explanation of wraps at:
http://www.propertyinvesting.com/strategies/wraps.html
I hope this helps.
Cheers, Paul
Another wrap explanation link
For a more complete explanation from a lawyer, have a look at:
http://www.businesslawyer.com.au/fr_property.html
Cheers, Paul
For a more complete explanation from a lawyer, have a look at:
http://www.businesslawyer.com.au/fr_property.html
Cheers, Paul
Hi HHH
We used Rick Ottan's "wrap pack" and "wrap camp" to get our education going. However I'm told the Steve McKnight's "wrap pack" and seminars are equally good.
Yes, we use Tony Cordato as the lawyer for our wraps business. He is the owner of the "businesslawyer" web site.
I hope this helps.
Cheers, Paul
We used Rick Ottan's "wrap pack" and "wrap camp" to get our education going. However I'm told the Steve McKnight's "wrap pack" and seminars are equally good.
Yes, we use Tony Cordato as the lawyer for our wraps business. He is the owner of the "businesslawyer" web site.
I hope this helps.
Cheers, Paul
Hi HHH
Yep, we're very happy with Tony's services. However I would recommend that you use a Qld based lawyer. There are numerous listed in the "Specialists" area of the Vendor Finance (Wraps) Association's website which can be found at
http://www.financewraps.asn.au
There are also many other excellent wrap resources on the Association's website and you can join online when you visit.
Cheers, Paul
Yep, we're very happy with Tony's services. However I would recommend that you use a Qld based lawyer. There are numerous listed in the "Specialists" area of the Vendor Finance (Wraps) Association's website which can be found at
http://www.financewraps.asn.au
There are also many other excellent wrap resources on the Association's website and you can join online when you visit.
Cheers, Paul
thanks for the links - a brief and to the point description with an example attached. It's along the lines as to what I thought. and I have a couple of questions already.
I will check the forum for more info on wraps and answers to my queries (but maybe somebody will be nice and save me looking by answering the questions )
1) What criteria do you use to evaluate the propsective purchaser.
2) Who is the owner of the property, how do the banks evaluate the asset - as one of yours or of the purchasor? the contract is finalised when money owed is zero.
2.1) What is placed on the offer and acceptance as a date for settlement?
3) which banks will lend money for this type of deal - are there banks who specialise on 'wholesale' vendor finance products?
4) What happens if you get screwed by the purchaser? what process do you go through apart from sending in your goons? ie do you get the police/ sheriff onto them, how do you get them out of your property? how do you get your money back?
5) How much capitol do you need to have initially?
Will read up on wraps and other options so hopefully what i read will provide some good insights into some of the issues. Maybe someone can suggest a good book - that I can check out of the library or purchase cheap. I don't want to buy a 800+ program or wrap kit as it may not be moeny well spent at this stage.
cheers keg75
I will check the forum for more info on wraps and answers to my queries (but maybe somebody will be nice and save me looking by answering the questions
)1) What criteria do you use to evaluate the propsective purchaser.
2) Who is the owner of the property, how do the banks evaluate the asset - as one of yours or of the purchasor? the contract is finalised when money owed is zero.
2.1) What is placed on the offer and acceptance as a date for settlement?
3) which banks will lend money for this type of deal - are there banks who specialise on 'wholesale' vendor finance products?
4) What happens if you get screwed by the purchaser? what process do you go through apart from sending in your goons? ie do you get the police/ sheriff onto them, how do you get them out of your property? how do you get your money back?
5) How much capitol do you need to have initially?
Will read up on wraps and other options so hopefully what i read will provide some good insights into some of the issues. Maybe someone can suggest a good book - that I can check out of the library or purchase cheap. I don't want to buy a 800+ program or wrap kit as it may not be moeny well spent at this stage.
cheers keg75
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