I have a  house available in Boambee East which is just 4 minutes from Coffs Harbour.

Its a 3 bedroom house.

We are making it available to someone who wants to own their own home for $565.82 per week. And is serious that they want to stop renting.

Here are some more pictures and my contact details

Don Christie

I was so excited that when the courier left a sorry we missed you card i felt like i had let him down by not being home to get the pack. Sorry mate I was trying to tie up a townhouse complex with a buck and the conversation went way too long,but we can talk later! So I did not receive the pack until the following Tuesday.

Just to let you know the first property pack I bought from Rick was the Wrap pack in 2001 and for memory it came as a tape, folder, legal docs and calculator set. Not much bigger than most over night postage packs. The Massive Property Pack came in a box that the courier said was 7kgs! so this added to the anticipation!

You can see in the picture that its a very professional looking set of items that will help create a basic business if you simply follow the system step by step. And don’t change anything in the system besides your telephone numbers on the offers and forms he lets you use! Otherwise people will call him rather than you!

In the 2nd page of the folder manual states ‘How to Buy A House on One Days Pay‘ is really the basis of the pack. We all know that less money in any transaction reduces the risk of the transaction, but what if you could control, manage and on-sell a property you have no more exposure than a day’s pay?A true No Money Down strategy to buy property.

The general concept is not new and most property ‘educators’ are talking about options now the property boom is in a downturn and they cannot rely on capital growth to secure more seats to seminars and conferences. Rick has been doing Lease options and other no money down transactions for years. 15 or more years to be precise. His experience comes from the savings and loans crisis in the United States when banks were not lending on any property and guys like him had to buy houses and transact property without any banking system.

I am not saying he made the whole system up, that would be untrue, but I do not know of anyone who is so upfront and honest in the way he educates his students. I used to be able to call Rick on his mobile just because I bought his Wrap Pack years ago! Who else lets you do that? I think this shows he actually cares about what his students are doing with his material out in the marketplace.

My feeling is that Rick is trying to help people setup a business similar to his company We Buy Houses. The fact that the examples and checklists we received in the pack are branded We Buy Houses is a testament that nothing is off limits in his eyes to help his students build their own property business.

So what is the Massive Passive Property Pack like?

Well here are my initial findings!

1. There is literally so much audio content that you will have to drive to Perth and back to get through it! Seriously, you will have to spend some serious time getting through these, but the content is fantastic, you just fly through them. You may think this is a drawback, but I think that as a hands on sort of guy I need to hear someone talking about the concepts and ideas for the lessons to kick in.

There are private phone calls, conferences and meetings, one on one conversations and private mentoring sessions that are covered and heaps of professional people who have supported Rick are involved. Guys like Tony Cordato, the vendor financing lawyer everyone uses in Sydney. There is Lewis O’Brien who is the Lawyer for the Victorian Guys using Rick’s techniques. Most of the audio is transcripted in a seperate folder and for those of us who appreciate being able to re-read something is a handy resourse.

2. There is a couple of hundred pages of how to, what to and when to articles aswell as a full guide as to how each transaction should be set up. There is a step by step guide to speaking with agents and vendors and a full script for the telephone conversations that need to be made with confidence and also extract the information to make this business a success.

3. There are a couple of Dvds which help the students experience the ideas and concepts from a difference stimulus, which is great as it gives a whole new understanding as some of the content on video is a workshop and it discusses basic terminology of the no money down strategies.

4. The successful sandwich lease options guide is a handy 40 something page booklet which I found to a be a go to guide today actually whilst trying to get an agent to sell my concept to his client.

5. There are two audio cds from two of guys living and breathing the business just like Rick. One of them is Martin from Cairns who makes a Million Dollars per year from This business and the other is Chris who is a Dancer in Tasmania. Chris is a normal family guy who has to buy properties cheap or for no money in it to get his business going. These are eye and ear opening as getting started is hard with a few blunt NO’s from agents etc.

6. There is every state in Australia and New Zealand’s paperwork and all the legal requirements have been listed by Lawyers in those areas. This is great if like me you live on the border of two states and do business in both!

The Massive property Pack will no doubt create so much attention in the real estate industry, that rick will be busy aging making more and more copies to make sure there is enough to ensure our business keeps growing and growing. As the Martin the Cairns Guy says. ‘Just back yourself and go for it‘ and ‘We offer a superb, superb alternative to the banking system this is going to be more and more common’.

Get a copy of the system from this link. Massive Property Pack Rick even offers a 5 times the price guarantee, so if you follow his system for a year and do not make more than 5 times the cost of his program, he will refund the cost of the Massive property Pack.

Don Christie

The house is less than 2 years old and currently has a tenant that pays $340 per week. The new owner can move straight in as the current tenant is happy to move out if required.

The house in within easy reach of many local shops, schools and transport.

We are looking for a buyer who may not have the normal 20% deposit, is able to service a loan with us and is keen to just get into a home of their own.

I have a post with the www.owner.com.au website so full details are here.

I am advertising this house under a ‘No bank Qualifying’ system as set out in the massive property pack by Rick Otton.  Click here for details about Rick’s System

Don Christie

P.S. If you are interested in buying this house from me, please feel free to use the contact link in the tool-bar.

I bought some business cards that say very basically. “I Buy Houses.”

These cards cost me $100 for 1000 cards. They are exactly what you need to get if you plan on standing out from the crowd that speak to agents, homeowners and developers every day. Also on the card is information regarding my business of vendor financing houses through our easy homeownership program.

You also need to visit the agents and developers often and spend time building the relationships with them. At first your efforts may seem in vain, but next time they get a deal they know will suit what you have told them, they will for certain ring you and tell you first.

They will obviously ring you with a whole heap of other buyers, but then and there you need to take action. You need to go and see the deal. If you do not go, usually you have just blown that relationship. These agents work on numbers and if you cannot get the money for the deals they have they move onto the next guy who does. You at least want to visit what they have on offer and discuss it with them. Give these guys feedback on what you liked or disliked. You will gain a lot of respect if you can act like a business person and can help the agent with his business.

Agents in the past have called me to offer me a great deal, but I have been too busy with another project or deal to even make the effort to see the property. Now these guys have never called me back again. I find people, maybe they move offices or agencies, and they re-find my card and ring and ask me what I am looking for, only to find out we have already spoken before.

Another great way is to get updated ‘new listings’ email alerts for real estate websites. There are a heap of great sites, but be aware that most of them seem to be updated after the agent has called his buyers lists, and those guys have the information long before you get your email alert.

Get busy with a few leaflets or flyers in the areas you want to buy in or may consider buying in. You will meet some people, talk about houses and the area and you never know what may come up. I think this is great as a low cost way to find houses as it gets you in the area on the ground and you will notice things like street crossings, lights, rental houses and you get a bit of exercise and fresh air. The conversion rate is very low with this type of advertising, but how many deals do you want this year? If you get too many great deals can’t you just sell them to an agent for a $5000 cash payment anyway? Or email me, I’ll buy them if you get too many!

I have a joint venture partner who has got some unique signage on his car that advertises he also will buy your house. He told me that he does not know if any deals have come his way from having the sign, but I am sure it was cheap enough, and it is all about branding and being out in the market doing it.

Advertise in the local papers what you want, many people look there and I have in the past found houses this way. For $30 you never know what may happen. Again if you get too many deals you can always find other investors who are willing to buy those leads off you as this saves them time and effort.

Go to open houses with your business logo printed on polo shirts. This may sound cheeky, but why not stand out and be different. The agent will remember you and your shirt long after he has seen 100 people though out the week.

Just talk to people and tell them what you do. I have found that couriers, mailmen, door-to-door people, know what’s going on in certain areas as the people who live there talk to them. Make an effort to give your cards out to people who maintain houses, gardeners, electricians and plumbers who may know of other investors, agents or owners who may be selling in the near future.

Just go out and be seen in the market place and be prepared to go out of your comfort zone to get comfortable.

Getting control of a property that needs a renovation, a few repairs or a refurbish is usually very easy to do as most investors and new home owners are not too keen on the hard work side of buying houses.

Flipping is a great way to get your portfolio going very quickly. You can make serious cash if you get into the right opportunities and can move fast when they arise. There are some pitfalls that I know to watch out for and I am sure there are more that I have not thought of.

You need to get networking with agents who are prepared to bring you deals where you think you can get a deposit down fast to secure the deal. You then need to get a buyer to ‘flip‘ the property to.

Here is how a Flip works

1. You get a call from an agent or you find a suitable property below the market value of similar properties in the immediate area.
2. You get a contract to sign from the agent or owner. Do not go unconditional just yet!
3. You advertise for a buyer to buy the house from you just below market value.
4. Get commitment from them and a deposit.
5. Get your new buyer to sign an unconditional contract to complete the purchase.
6. You buy the house at your price.
7. The new buyer buys at the price you negotiated.
8. You make the difference minus the tax implications.

Essentially you will find that there are some risks involved and they need to be attended to before going out and offering or buying anything. Property investing comes with risk and mitigating or understanding these risks enables the investor to get closer to the rewards.

Flipping houses for profit in some states creates stamp duty implications as capital gains tax is payable at the applicable rate for the investor. In the event you cannot find another buyer straight away you are obligated to buy the houses as you signed a contract for sale.Your position then would be to withdraw from the contract and therefore lose your deposit.

I suppose in the event you have to settle on something you cannot move for one reason or another you might be able to do a small reno, value add or repaint and then list it for sale using either traditional methods, vendor finance or a 20% carry back.

I have been involved with a Flip in the southern suburbs of Brisbane and did not sleep for the days around the settlement. Investors need to have nerves of steel and plenty of guts to make this work for them.

As always your accountant and solicitors will have you better prepared for the implications in your area and will have to direct you in the correct way to do Flips - with Success!

http://www.propertyinvestoradvice.com.au/

Its on the right hand side together with a lease option report for all to enjoy.
Rick is sending me a few more in the coming weeks.
Also i will be doing a day by day of buying a house and sandwich lease optioning it. With pictures, emails and solicitor’s commentary too. Video of the house and the conversations with agents for those of you who are having trouble.
Don

1. A friend of yours wants a loan from you.
2. You ask them to insure your money against the risk of you not being able to return it or pay it back.
3. They don’t repay the loan.
4. You claim your insurance on the funds you lent them and the insurance company pays you the cash.

That is what mortgage lenders do everyday to ensure their money is lent ‘Fully Insured’. They get to make money, fully insured, sounds like a great business!

Lenders Mortgage Insurance (LMI) is a payment made by the borrower that protects the banks or financier in the unlikely case that a borrower defaults and a loss is evident after the mortgaged property is sold.The premium for LMI is payable once only at the commencement of the loan and protects banks for the life of the loan.

Most banks usually require Lenders Mortgage Insurance whenever the Loan to Valuation Ratio (LVR) is above 80%. LMI may be required when LVR is below 80% for some types of property. The funds are always insured, but above 80% you pay, and below the financier pays.

The premiums are determined by the underwriter based on the amount of the loan and the Loan to Valuation Ratio. They are usually an arms length from the banks and will vary upon location and type of house you are looking to secure.

Most of the time the LMI figure is simply a percentage of your loan. When the bank lends you the 95%, or whatever you borrow above 80% you need to cover the insurance premium.

For example

• $288,000 loan.
• LMI at 95% lend is 1.35% of that loan amount
• LMI payable is $3888.00

So you will borrow the $288,000 however the bank usually takes off the $3888 off that amount. You are then required to cover the shortfall of this amount. The banks are more than likely to add it onto your loan or capitalise it. Therefore you will find that the approved loan value will be less the LMI payable upon settlement. Either way you will need to have the cash to complete the purchase.

This insurance is not covering your ability to repay the loan it is simply an insurance that the banks will get their money regardless if you pay your loan or not.

If you default you will most likely see very little from the banks in the way of a cheque to cover what you own. Before you fall into this situation find an investor who can help you out of paying a mortgage you cannot afford.

There are 2 Lenders Mortgage Insurance Providers in the Australian market covering both national and international lending. They are GE and PMI. They both have fantastic websites showing the lending levels they will cover in postcodes all over the country. There is talk of another company coming into the market, but we are yet to see more than just rumours. Banks usually self insure their lending whilst the mortgage lenders like Aussie and Rams use PMI and GE.

It’s interesting to note the banks rarely refuse your applications on residential lending. It’s the insurance company that has more than likely refused to guarantee your loan according to the information that the broker has supplied to them. The LMI companies do cross check themselves and if you provide false information or lie on your applications you will be blacklisted for future loans.

Serious investors understand that borrowing money does come at a cost and LMI is another cost of investing in real estate. Unless you can buy everything with cash then consider paying the LMI premium and getting heaps of leverage in your portfolio.

Don Christie

1. What will the cost of changing loans be?
2. When will the costs of changing loans be paid off?

To answer these questions let’s establish some averages:

• Average mortgage $250,000.
• Average variable interest rate 7.25%.
• Houses double every 7-10 years.
• Most people owe between 45-60% of their home.
• Most people refinance every 4 years.
• Interest rates increased by 0.25%.
• Fixed loans have break fees as they are ‘fixed’. They cannot be broken without being charged the interest you agreed to when you signed the mortgage.
• Deferred establishment fees are usually 1-2% for some credit providers which means they will charge you this amount if you cancel the mortgage and refinance with another bank or credit provider. Usually after 3 years there are no fees incurred, but do check your loan documents before attempting to refinance.

1. The weekly payment on the loan per week is $393.31 per month before the increase.
2. After the increase the amount went to $403.14 per week.
3. If the deferred establishment fees are 0.5% of the outstanding loan balance - $1250.
4. Lenders Mortgage Insurance will not be used as the equity built up will be a low risk to the banks.
5. Re-valuation and mortgage stamp duties could be $1000.
6. New bank fees for new bank - $500.
7. Settlement fees, $500, for your legal people’s time.

Total costs for walking away is $3250. That figure is 8 weeks worth of repayments at a principle and interest loan, even more on interest only!

So when we go to the new bank most likely they are going to give you everything you want for your new mortgage, but the rate is going to be in the vicinity of 7.23%. That takes repayments back to $392.53 per week.

So instead of paying the $403.14 we are back almost to where we started. The ’spread’ or difference in the saving is $10.61 per week.

The saving is $551.91 per year and the cost of changing loans is $3250 so it would take 306 weekly payments or 5.8 years to just be ahead of the costs of changing loans to beat the interest rate rise.

So, yes be concerned that rates are on the increase. Just be careful when running to the credit provider down the road or to your broker as they will ’sell’ you on the savings per week, just ask what the break costs will be and when you will start to be ahead of the costs.

Don Christie

These ones do excite me, as vendors get desperate - as you can imagine - and they are sometimes a great boost to anyone’s equity! He has had tenants that caused or were involved with a fire inside the house. Insurance paid out to cover replacement / refurbishment cost of the fire. Total renovation and re-marketing to cover some outlay. Meanwhile the mortgage still has to be payed each and every month.

When I asked the agent some questions, she said to me that they are looking to re-rent the house out and will have the rental agreement by the end of today. I said why don’t I rent it and buy it at the end of the 12 month lease. She then said and I quote ‘We don’t do that here, its just a straight buy and sell, nothing fancy‘. So I said thanks very much. Goodbye.

Now if you were the vendor would you like the security of someone paying rent each and every week with a contract of sale at the end of the lease; or would you like to wait another 3 months to get something done. A Lease Option or a Rent to Buy.

The agent then called me back, and said that they were happy to rent it to us, but it would still be for sale if I was interested. A straight sale. Remarkable, she was not even interested in the fact that I was going to pay more for that house than the list price. Not my mortgage to worry about!!

So the message in it all? Find agents that want to work with you to get you where you need to go. There is no school for these guys besides a very quick real estate institute course. They don’t do a why-investors-do-things-differently course. It never ceases to amaze me why these guys don’t have substantial portfolios. I know I would if vendors called me looking to sell each and every day of the week!

Well, now they’re just another Agent that will never get any further inquiries from me again… Nor a sale if I need some help getting things sold in the future.

Find people who want to work with you in your investing and you will get further even with one agent working in your favour!

Don Christie

Buying a home is often the biggest purchase you will ever make and it is strongly recommended that you commission the services of a solicitor or conveyancer, who are experts in this area, to ensure that everything runs smoothly and is done correctly.

Solicitor or conveyancer’s charges vary from state to state and in accordance with the amount of time and work required. They usually cost between $750 -$2000 for their services. They arrange the title, council and any outstanding searches. They attend settlement and will interact with your bank to make sure things go smoothly when you are buying property.

I like to use a solicitor when buying, as in my experience, conveyancing-only firms are a bit too relaxed for my business of being a professional investor. The ones that I have contacted are missing that little bit of energy that helps me relax during the settlement phases.

I know investors who thought on their property purchase that they would settle on their own and not use a legal representative, only to miss something or have an issue with the bank or council searches. This costs time and in property there are costs incurred with wasting time. Just like the saying goes, “Time is money!”

The investors that do try it usually have to get legal help to get things straight, and it costs more for rushed help rather than doing it right the first time. I would imagine that they go back to buying houses with their time, rather than trying to do work someone else could do better, and try to save a thousand dollars!

I have seen solicitors save investors and first home buyers heaps of money when buying, when boundaries have been wrongly fenced, or when contaminated land has been an issue.They are very straight up people - and should be - as they are protecting your assets and you. So treat them well and they will help you on your way to being a property professional.

Thinking laterally, as I like to do, you will find that after you have done a few property purchases and used the same firm, the practice will call you when they know a property owner is in trouble to meet their commitments or that a fellow investor needs some money for a short term loan. I have found Private Investors this way and it pays dividends to keep professional about things, but to let people know you are always keen to buy property.

Don Christie