Hi,

First – funny signature for a wrapper (Buy Now – never sell)

The quick answer to your question is you do not include the figure in your Home Loan Analysier program.

Here’s the long answer…

Your operation is similar to many setups I’ve heard about. Let’s break down the process and it will be easier to understand (by the way I am no…[Read more]

Hi,

Actually that is incorrect – the Government agency that manages credit licenses once spoke at the Vendor Finance Association’s meeting in W.A. and was very clear about what can and can’t be done.

You cannot provide vendor finance in a business like manner without a credit providers license.

However you can provide vendor finance if you are…[Read more]

Jobee,

You will find with all mortgages it is a condition of the loan that adequate insurance is taken to protect the security. You will find that the same condition is applied to wraps, i.e. its not something that’s optional.

Michael G

Hi,

Some great info, however in the meantime I am arranging for a speaker from the ATO to come along to the Vendor Finance meetings to speak on this issue too.

Regards
Michael Gruber
President
Vendor Finance Association

Good question.

This is about proper structuring of assets. When the property is purchased in a trust and the trustee is a company. Then the property is actually not owned by the wrapper and shielded from liquidation.

However, as I said, all these questions will be reviewed by our advisors to create a standard “best practice” for the FAQ. So the…[Read more]

Hi Yack,

I believe the reason such options are only available by mainstream lenders and not wrappers is because such structures do not maximise the captial a wrapper has available.

I understand your viewpoint and I know it is one which creates a lot of debate. However that structure you propose is freely available other leaders.

As that niche…[Read more]

Hi,

The Government understands the both sides of the arguement and is working towards a goal that will balance both sides of the equation i.e. protecting consumers through better disclosure and maintaining an environment where those who wish to provide vendor finance may do so.

And the question whether vendor finance and creative funding…[Read more]

Hi,

Yes, however at this stage it is still in draft form. However the general context is;

– compliance with the consumer credit code
– easier to understand (plain english) documents
– more transparent disclosure on terms and conditions.

Regards
Michael Gruber
President
Vendor Finance Association