Full Mortgages without Applications
Learn on our Christmas Special the …
Best way of purchasing in the current market!
Last month I bought the three townhouses below with 100% bonds, without having to apply for a single bond or provide financial information or sureties to any banks.
Platinum members can see the three houses in the Treoc Investor software’s “Shared Investor” section, under the Treoc 101 portfolio, but for the sake of non-members who don’t have access to the software, I will gladly give a short description of the transactions.
Property 1 – Oxford Mews 27
Price – R 336 373
Bond – R 336 373
Value – R 400 000
Equity – R 63 627
Rental – R 3 200
Shortfall – R 1 211
Expected Return on Investment after one year is 587%
Property 2 – Honeyview 5
Price – R 327 259
Bond – R 327 259
Value – R 390 000
Equity – R 62 741
Rental – R 3 000
Shortfall – R 816
Expected Return on Investment after one year is 869%
Property 3 – Honeyview 6
Price – R 329 661
Bond – R 329 661
Value – R 390 000
Equity – R 60 339
Rental – R 2 800
Shortfall – R 990
Expected Return on Investment after one year is 699%
The shortfalls on these properties were all calculated as the worst-case scenario, after making provision for vacancy and maintenance. The values are derived by the recognised Lightstone comparative method, based on information from the Deeds Office.
I know the returns on investment (and they are not typos!) will once again make the non-Treoc Financial Advisors choke on their coffee, but that’s what they are, and they are based on conservative assumptions, as members will see on every property’s “Settings” page in the software.
How is it possible to get bonds without applying or qualifying for them?
Easy, very easy! I used the unique ALA method and the ALA service providers.
How is it possible to get such a big return on investment?
Apart from some attorneys’ fees, I have no costs on these properties, other than the shortfalls. The existing equity in the property is already far higher than the cost!
Can anyone do it?
Of course!
Is there any risk involved?
Although the ALA law protects us really well, there is some risk, as with any transaction. That’s why we recommend that ALA transactions should be done in a separate trust.
Where do we get information about the ALA method?
At the new Millionaire Workshops in 2012 I will provide comprehensive information about ALA. It will include the following:
- What is ALA?
- How are buyers and sellers protected?
- What are the risks?
- The ALA law
- The special ALA trust
- Founder, Trustees and .........................
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Hi
I’m a platinum members and I can’t see the portfolio under the Treoc Investor under the “Shared Investor” section.
Comment by PieterVDM — December 1, 2011 @ 11:10 am
Hi Pieter
Sorry about that. The IT guys fixed the problem. You can try again.
Regards
Coert
Comment by Coert — December 1, 2011 @ 12:12 pm
Thanks, I can see it again
Comment by PieterVDM — December 1, 2011 @ 12:28 pm
Hi Coert,
Thank you for your excellent news letters. I think I am probably very stupid but is it possible to show me the calculations of how you got to the returns per annum for these properties. I know I am not a platinum member but I would just like to know how you calculated this. The actual large figure doesn’t surprize me but with my limited knowledge of maths I do not get close to these figures
Thanks alot
Comment by Tommy — December 1, 2011 @ 3:39 pm
Hi Tommy
Unfortunately I cannot duplicate all the factors and calculations here. The only way will be to join as a member.
Regards
Coert
Comment by Coert — December 2, 2011 @ 9:16 am
Hi Coert
I agree with you that a section 20 ‘installment sale’ transfer is a very convenient mechanism to purchase property in the current environment, but I think that you’re being a little economical with the truth when you say:
How is it possible to get bonds without applying or qualifying for them?
As far as I know, whether you do a normal purchase, a section 20 or a section 57 ‘substitution of debtor’ transfer, the banks will still do the same credit assessment and so you still need to qualify for the bond, if you are using your ‘ALA method’, because the banks want to protect themselves. Unless, you’re talking about seller financing in the case of a paid up property that isn’t bonded. Was that the case in the 3 examples above?
I would really like to make use of this ‘ALA method’ to transfer 2 bonded properties from one trust to another but can’t because of the credit check. How do you suggest that I proceed?
I have already spoken to Rich Redinger (at MC vd Berg) who was recommended by Leonie Nortje.
Thanks
Peter
Comment by PS — December 8, 2011 @ 10:42 am
Hi Peter
ALA is not the same as section 20 ‘installment sale’. Few attorneys or estate agents are familiar with it. As far as I know the Treoc service providers, like Legalfin, are the only attorneys in the country specialising in ALA. You can make contact with them on http://www.treocserviceproviders.com/ Speak to Gert van Staden. They administered the deals on the properties mentioned in the article I did not complete a single application with a bank and neither did I provide them with financials or sureties!
By the way, I do not know a Rich Redinger or a MC vd Berg and it seems to me they do not know the ALA method. I only recommend the service providers on http://www.treocserviceproviders.com/
Regards
Coert
Comment by Coert — December 8, 2011 @ 12:37 pm
Hi, I have just had an offer accepted on a property and was about to start the bond application process. I intend selling/renting my existing home. Can I use the ALA in this situation. Can anyone advise?
Comment by mikescott233 — December 8, 2011 @ 4:47 pm
Hi Mike
Speak to Gert van Staden at Legalfin. Make contact with him on http://www.treocserviceproviders.com
Comment by Coert — December 9, 2011 @ 8:55 am
I own property in Mandalay Cape Town and has just survived my property being auctioned by the bank and would like to start my investment portforlio with Treoc way.What is the first step and how do i go about as a new investor.
Regards
Luvuyo Marubelela
Comment by Luvuyo — December 13, 2011 @ 4:50 pm
Hi Luvuyo
The first step is to attend a Millionaire Workshop.
See http://www.treoc.com/education-seminar-35
Comment by Coert — December 14, 2011 @ 3:41 pm
Hi Coert
I attended your seminar in 2005 and found it absolutely fantastic. The only problem is that i thought i could continue on my own with the information that i have learned from you and did not find it necessary to become a Platinum member. HOW STUPID OF ME! with the result that i suffered huge losses and practically lost all my properties when the recession came about. Since then i have been really struggling and suffering financially. Well i refuse to continue like this next year and therefore have joined now as a Platinum member and will be attending your Millionaire Workshop on the 18th Jan in Somerset West. Something which i should have done a long time ago. I know that with the guidance and support of your service providers and yourself i could have avoided or minimised the loses that i suffered. Well Coert, im back. See you on the 18th Jan 2012 for a whole new positive, prosperous begining. Regards SK
Comment by shiyaamk@iafrica.com — December 21, 2011 @ 12:35 pm
Hi Shiyaam
This is the spirit! You will not regret it if you do it right. See you on 18 January!
Regards
Coert
Comment by Coert — December 21, 2011 @ 4:06 pm
Hallo Coert,
Die ALA metode van koop klink regtig na die oplossing vir die huidige oomblik, asook die feit dat dit banke uitskakel, dit klink regtig fenomenaal! Help asb, waar kan ek meer inligting daaromtrent kry, ek kon nie retig iets op die Treoc.com website opspoor nie…? Veral dinge soos hoe sit mens koper en verkoper bymekaar en waar spoor mens verkopers op?
Groete
Lourens
Comment by lbss22008 — January 18, 2012 @ 9:04 pm
Hi Lourens
Die beste plek om te begin is om ons werkswinkel by te woon. Daar verduidelik ons alles soos byvoorbeeld: Die restegniese dinge wat jy moet weet, die kontrak wat gebruik moet word en hoe en waar om die transaksies te kry en te beklink.
Groete
Coert
Comment by Coert — January 19, 2012 @ 8:48 am