All Forum Posts by: Russell Joseph

From us over here in Australia we are grateful for an Obama win because at least he has a policy!

As the saying goes, when America sneezes, Australia catches cold (or pneumonia!) so a plan and decisive leadership is better than the nonsense that we have seen over the last few years.

Our own investment strategy has even been put on hold because of the sub-prime issues in the US and right now we are starting to feel the pain....hopefully the crucible of democracy can deliver on the principles espoused by the President-elect!

For us, more for a cashflow generation strategy as opposed to a wealth creation strategy. That is, generate cash flow from rent and profits (when the option is taken) in order to invest in buy and hold high growth properties.

I'd be interested in other peoples thoughts on that question.

Good point.

In your experience, how many of these RTO's don't take the option and is it the buyers that are not prescreened as well that tend to fall over?

One of the most important aspects to these is exactly as you alluded to and that is the 'exit strategy'.

That is, does the rent-buyer understand that we expect them to refinance and take the option to buy? Most of the profit is made at this point.

While we cannot force them to of course, we need to be absolutely clear at the start that this is the purpose of the strategy.

We are considering setting up a mortgage broker to sort of 'pre-qualify' the rent buyer at the start so that if all things remain relatively equal they know that they will be able to qualify for a loan at the end of the option period.

Jeff88, while that is a good call, it is important to understand that many people see Real Estate as a much higher risk investment and simply don't have the knowledge or the cash flow to feel comfortable with it.

Some of these business models are in realy excellent for cash flow while also allowing people the time to then get into real estate.

In any event, I would suggest that people don't have to 'choose' between such a business model and property investing - I've chosen to do both, as well as running my construction business.

So while the point you make is valid, the broader concept is that we use our cashflow (whereever it comes from) to invest in property, to build our long term wealth.

We have contracts for over here (in Australia) but they do vary slightly from State to State - possibly the same in the US, but your legal people should be able to advise on that.

You can get access to US standard option contracts, again that may need to be modified to suit your deal, as part of the package available at my website. It may be a cheaper option than getting an option contract specially drawn up by your own people.

Perhaps also talk to various legal people in your area that have done these deals before. It is important that they know how to make the paperwork fly or else you could get yourself into hot water!

As Wheatie said, you must keep the standard residential lease completely seperate from the option, and also take as much as you can up front as an option fee. Money on the table from the buyer helps to ensure that they stay in the deal to the option date!

Hope I haven't sidetracked you all with my posts but I think that in reality you cannot take the politics out of this topic - "Mortgage insanity bailout".

The Housing bubble and the sub prime bailout market effects on Real estate is a political issue, and there is no escaping it.

Maybe the war can go elsewhere - I'll grant you that!

Tyra, you don't have to 'opt in' - if you entered your email then you will get one autoresponder email and then an email from me, usually within 24 hours. Nobody else gets your email - only me, and you will not be pestered for an eternity by mailing lists! I have complete control over the backend of this site, and that is one of the things I like about it.

If you skip the main movie from the link in my signature and go to the page with my mugshot on it, there are other movies on the tabs 'Overview', 'Products' etc ... I assume you have seen those? If not then they are worth a look.

Anyway, since you are interested I will PM you another link to a site that will give you access to more information and how you can link into a conference call to learn a bit more.

Hope this helps and thanks.

Thanks guys, nice to be welcomed like this.

Nice touch with the OI, OI, OI....!

Yes, we are simple folk - unlike our british cousins whose soccer chants last a full 90 minutes, we have stuggled to top the OI, OI, OI for the last 20 years!

Anyway, you will see from my other posts that I am fairly passionite about politics and the complete inertia of our democratically elected political elite to rail against corporate influence in the coridoors of power. To understand more about me is to know that one of my favourite quotes is:

"Our lives begin to end the day we become silent about things that matter." -- Martin Luther King, Jr.

Thanks again.

Understand you sentiments but we need polititians, we just don't need crappy ones!

If there was a politician, State, Federal or anywhere in your current National election cycle that you felt had the personal integrity and ethical leadership values to take control of the ship - who would it be and why?