How to buy a house for a dollar..

Maybe it's just my impression but I get the sense that a lot of wrappers go into it wanting their low income purchasers to fail so they can confiscate the proceeds and sell it off to some other sucker. So it is a form of exploitation because if the banks won't lend to them they don't have a hope at higher interest rates charged by loan sharks *cough* wrappers.
 
Maybe it's just my impression but I get the sense that a lot of wrappers go into it wanting their low income purchasers to fail so they can confiscate the proceeds and sell it off to some other sucker. So it is a form of exploitation because if the banks won't lend to them they don't have a hope at higher interest rates charged by loan sharks *cough* wrappers.

I've never seen anyone predatory like this. The key to a successful wrap deal, is ensuring that it is affordable for the purchaser.
 
How do you make it affordable for the purchaser if they can't afford bank finance but still take a premium above cost of funds to make it worth your while? I just cannot see how the numbers work.
 
I did a vendor finance deal with a couple where they got to purchase a brand new 4 bed, 2 bath house with all the extras in 2009, for $365k, 20km from Melbourne CBD. At the time (very limited period) they were entitled to a $32k FHOG but had no savings.

I am charging them 1.5% more than the standard variable rate until they refinance. They gave me $26k of the FHOG and they got the other $6k for free. I only charged them $20k more than the house cost me to buy. I got cashflow, they got $32k free and the house of their dreams at a reasonable cost.

This wasn't a deal where you buy a house for $1, but shows how vendor finance can work well to achieve the goals of the parties. Between when we purchased the land for the build and today, the land value jumped from $140k to $220k.

In a deal where the house is "bought" for a dollar, it is generally that you assume the holding costs associated with the property, but offer the owner to purchase at a future date in time at the price they need for the property.

For example a person may have moved from the Gold Coast to Sydney and bought in Sydney before selling in the Gold Coast. They now have negative equity and can't afford to sell, but also can't afford to hold. Offer to take up the payments in return for paying their full asking price at a future date. Find a person who may have difficulty getting standard finance for any of a number of reasons but really wants to buy your property and the deal is done.

This should work much better in cheaper markets like USA, where I am hoping to be able to utilise such strategies successfully.
 
I did a number of VF deals years ago - more than 10 years now.

One of my tenants was able to purchase a $200,000 property from me for $140,000 because of rapid capital growth. I made about $20,000 and he made $80,000
 
I did a number of VF deals years ago - more than 10 years now.

One of my tenants was able to purchase a $200,000 property from me for $140,000 because of rapid capital growth. I made about $20,000 and he made $80,000

I recall a similar VF story from Jason Whitton of +realestate, capital growth picked up pace and his buyers made more than him
 
My understanding is that you can't execute these deals yourself without a "credit license". Is this correct?

My understanding is that if you are supplying credit you may need a license. This would include installment contracts and exclude lease options.
 
Did anyone see that show on SBS last night at around 9.30pm? Dateline, or Niteline or something.

A report on the poverty situation in the USA, and they went for a "tour" around Detroit, Michigan.

Fair dinkum; it looked exactly like Iraq about a year after the war started; an absolute bomb blast..

No wonder the houses are a dollar or so. It was a ghost town.

Will watch the show..they won the war but lost the battle?

SBS America's Shame

This year's US elections are now expected to cost at least $6 billion - the most expensive ever in the history of America. But as the cash flows for control of the White House, there are many millions of people in that country who don't have enough money to feed themselves, let alone pay for shelter. With more than 1.5 million homeless schoolchildren and with tent cities now springing up across the country, reporter Hilary Andersson, took a camera crew around the US to make sense of why the richest country on earth is experiencing so much pain.

Story Transcipt
 
rick otton

apparently the reason they use the hand written signs is because people see them and think they will get more of a bargain. personally i saw them and didnt bother calling them when i was selling a house. but now i know more about it i think it all sounds pretty good. I am also looking to buy some of rick ottons products if anyone has any they would like to sell. And any advice from someone who has tried his strategies. I recommend looking further into it as its got my attention.
 
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