Hi guys[exhappy]. I just recently purchased a course from the states relating to vendor financing and converting into cash for the note holder.
How often does vendor financing occur in Australia? Especially Victoria?
I’m also keen to see if I can hook up investors who have cash to lend with people who are waiting for their money to come in from a settlement months and months away. What do people think about the viability of doing this? I was thinking that investors might want to give the person waiting for the settlement money like 90% today and then when it comes in – it goes straight to the investor from the bank. Obviously the discount rate would vary, but I think it sounds good.
So what do people reckon about that and secondly, does anyone know roughly how many people do vendor financing around the place?
Hi Vojinv,
Welcome to the forum! I’m sure you will find this forum to be of great assistance to you as you continue your PI journey.
As for Vendor Finance – a lot of people do it and there are many different methods of conducting vendor finance deals. “Vendor finance” in itself simply means that the party selling the property receives some or all of the purchase price from the buyer later on down the track after the settlement date. (Please forgive the overly simplified definition – but it gives you an idea!). The method of doing this is limited only by your imagination (and the relevant laws of your state/country).
If you have a look at the top of this website – go into “Investor HQ” and you will find descriptions of some of the different ways of making money from property. Two of the methods – Lease Options and Wraps – involve vendor financing.
Hope that helps?
Cheers,
Adam
Don’t let life get in the way of living.
hi Vojinv
what you are talking about is called the short term money market,bridging finance, caveat lending and a whole lot of other names if you have purchased a course it should have explained it.
and one thing it should have told you that under asic you are not allowed to offer itto the general public if you are going to invest morethen 2 mil or assist more then 20 people this is highly regulated but
short term money market,bridging finance, caveat lending is not.
have funhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
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