I want to hear from anyone that has done wraps.
Where did you learn to do them? How many have you done? Are you still actively doing them? Etc
Where did you learn to do them? How many have you done? Are you still actively doing them? Etc
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I want to hear from anyone that has done wraps.
Where did you learn to do them? How many have you done? Are you still actively doing them? Etc
Why?......
Because he/she obviously read/heard about it in a magazine/seminar saying how you can get rich without putting any money down and within a short space of time...same old story.
We did around 12 wraps - and I know people who have done well out of them - but for ourselves I do regret taking that path.
We bought them all cheaply in a rising market (around 2002) and wrapped ... the problem was that profits are locked in when you wrap them - in our case 30% of our purchase price.
The income was okay - we made around $200/mth from each property - plus the anticipation of the locked in profit.
The pitfalls were that the properties then proceeded to double in value (or more), so we missed out on 100% profit.
The quality of rent-to-owners applicants were rather dubious. We managed to pick mostly good ones, but a few duds slipped thru the gaps that caused us much grief.
We had no control over when the purchasers paid us out. We still have only one left that is lingering on 9 years down the track, and who has no intention of ever refinancing due to personal reasons. Due to that one being our first wrap, done as a joint venture, it makes a grand total of $100/mth ... but by the time you then take out ASIC and accountants costs it is severely negative. I've tried to sell it to the other JV partner at a reduced profit but they are not interested.
If we had bought them as straight rentals, we would have made 100%+ CG profit on each property, rents would cover mortgage repayments ... so we could have sold half and fully own the other half.
Hi Lizzie
I did 6 and had the exact same experience - purchasers made much more than me and when factoring in the opportunity cost it was not worth it.