Hi,
What are the recommended reading and forums focused on Vendor financing in Australia?
PJ
Hi PJ
Unfortunately I don't know of any VF specific forums in OZ. However if you do a search for Vendor Finance here and in the Somersoft forum, you'll get an immense amount of reading material. Also, I don't know of any specific books on Vendor Finance in Australia but a few web resources that may help in your search for information about vendor finance are:
https://www.propertyinvesting.com/strategies/wraps
https://www.propertyinvesting.com/strategies/lease-options
http://www.jvpropertypartners.com.au/index.php?option=com_content&view=article&id=50&Itemid=75
http://www.vendorfinancelawyer.com.au/
http://www.vendorfinance.asn.au/ The Vendor Finance Association of Australia
http://www.vendorfinanceinstitute.com.auCheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks Paul,
I'll take a look.
I am keen to understand this technique. I like your approach of setting up a VF deal to service a quality B&H.
I am keen to gain control a B&H property that has development potential (R30 upwards) giving me options down the track. However, although I have ample equity in my PPOR to set up a LOC for deposits my 9 to 5 is not able to service the negative gearing on the residual. I am hoping VF deals will come in and make up the difference.
My current LOC and my current 9to5 income servicability could allow me to gain control of maybe three properties of around
350K .I may be simplifying it a little but, at a minimum, how many VF properties do you usually set up to service a quality B&H?
PJ
Hi PJ
On average we work it so that one property sold with a vendor finance Instalment Contract will support one buy and hold of approximately the same value.
For most of our JV partners this turns into two +cf properties to one buy & hold while they're learning, i.e. most of our JV partners want to learn how to "do it" so they share the profit from their first one or two +cf properties. After that they should be in a position to "go solo" and get into a one for one position.
This allows them to have a "hands on" learning experience, as against sitting in a room with many others, learning the theory.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi Paul,
Thanks for verifiying my assumption. This is what I was guessing.
My initial goal is to limit or remove negative gearing as much as possible on my B&H properties while I have control.
Do you still have a negative gearing factor on your B&H once the VF properties are in play? OR do you ensure the B&H is at least neautral?
Also, do you know anyone in Perth who might be condusive to setting up JV's / Mentor arrangement using wraps?
PJ
Hi PJ
Yes we still have a number of -cf buy & holds but these are in areas we think have good capital gain prospects. Others, that have been -cf in the past have now move forward to neutral and positive.
Yes setting up a JV / Mentor arrangement in Perth is quite possible. Please PM me or call.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
