All Topics / Hotch Potch / How do I get vendor finance?

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  • Profile photo of MartieMartie
    Member
    @martie
    Join Date: 2004
    Post Count: 0
    March 27, 2004 - 10:02 am

    Hi all,

    I am very keen to purchase my first investment property and have been talking with some experienced investors. The thing is, I don’t have a great deposit, so I would like to be able to try and get vendor finance for the 20% the bank won’t lend for.

    Can anyone shed some light on ideas to best negotiate a vendor finance option when I am putting a contract offer forward.

    Any ideas would be great!
    Thanks

    Cheers
    Marty

    Profile photo of FWFW
    Member
    @fw
    Join Date: 2002
    Post Count: 478
    March 27, 2004 - 8:58 pm

    Marty
    Ask for it!
    Offer a reasonable price for the house – you won’t get much positive response if you’re trying to get the house cheap as well.
    Pick your areas – make offers in an area where there are a lot of homeowners with smaller mortgages, so they have equity to play with. Forget first home owner areas, for example.
    Most importantly, walk away if you don’t get what you want.

    Keep smiling
    Felicity 8-)

    Profile photo of brentbrent
    Participant
    @brent
    Join Date: 2001
    Post Count: 165
    March 29, 2004 - 2:47 pm

    Hi Marty,

    Open up a copy of the Age, Sydney Morning Herald, Courier Mail, or whatever your local broadsheet is on a Saturday and look in the classifieds for people advertising under the heading “Money”. There are people there who will lend money to investors for second mortgages, or as unsecured finance.

    The interest can be expensive, but it’s worth looking into.

    Brent Hodgson
    PropertyInvesting.com
    Admin Manager

    I’m going on a property buying tour! Want to receive the e-mail diary of my trip, hear about some of the great Positive Cashflow deals I find, and perhaps discover some great opportunities for yourself? PM me!

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225
    April 1, 2004 - 7:01 am

    >>The interest can be expensive, but it’s worth looking into.<<

    Yeh, interesting alright but I doubt it will be of any use as 16.5% comes first fo a second mortgage and, unless you are looking at an advertisement placed by your mother, you wouldn’t have a chance in hell of borrowing over and above 80% unless of course you are rpepared to pay a lot more than the said 16.5%.

    If however you’ve got say $ 3 K cash towards the de[posit + are entitled to the FHOG of $ 7 K you are already a long way there as a vendor may well lend you the shortfall. Just asking for it is all you can do and ened to do.

    Also, there are institutional lenders about who will lend you 90 %, 100 % and even 105 % of the purchase price.

    Any of the brokers on this site can I am sure, help you there.

    Pisces

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