Robert Kiyosaki's spin and my idea? Can it be financed in the current market?

As we roll into another year with finance set to be hard as hell, I've noticed a rise seminars pushing options and vendor finance strategy deals etc.

So naturally, today I attended a spin off from Robert Kiyosaki's network seminars

One of Roberts speakers was talking us through how he made millions refinancing on the deals he created and only controlled, ill explain below;

1-Purchase property with option for $5k or vendor finance or straight out cash partner
2-Renovate and revalue (still controlled only and deeds under others name)
3-Add renters (still under others name)
4- Refinance against the equity created (e.g added $30k) using this as a deposit and making the P/I repayments thereafter with the rent income (assuming you bought cash flow positive).

So what he was saying was its like a neat little bundle, all packaged up you trot over to the bank and they offer the finance to control the property? Your newly created equity funds the deposit and the cashflow created after expenses covers the P/I loan. Everybody's happy?

Catch is, would this work in Aus?

Would a bank or any lender be this creative in Aus?

 

its a ****

 

Was is Mark Rolton per chance.

His theory is you do all the hard work find a property with a gullible vendor etc then set any old DA as long as the DA will pas council then try and sell the option with the substandard DA.

 

Nah Wasn't Mark Rolton, but I know exactly who he is.. Hate what he's doing to the industry too.

Anyways @Terry_w, is this concept totally unachievable in Aus? Cant believe they are talking such sh*

They also told us to invest in NZ because they don't have stamp duty and no capital gains tax! I called my mate in NZ today and he said thats also bullsh* -They don't have stamp but their capital gains is as bad as ours!

 

It is possible in theory.

If an Aussie invests in a country with no CGT that doesn't mean there is no CGT for the aussie as they are taxed on their worldwide income.

 

sounds like: borrow the deposit from the vendor ( Vendor finance), and then borrow the rest from a lender, carry out some improvements, then revalue, get equity out, rinse and repeat.

do they have any clients tried this approach with success?

 

It was a UK speaking about his lessons, so I’m guessing not.