Hi Michelle and AdeI'd also suggest you get another accountant's opinion regarding the Trust structure.  As a Trust is not a legal entity under the law, a clever solicitor that wants to 'have a go' at a Trust will attack the Trustee.  If the Trustee is you, ouch.  If the Trustee is a $2 company, I'd be feeling much more comfortable.I believe th…[Read more]

Hi NigelI agree that most of these short courses have an up-sell at the end but even McDonalds came up with 'would you like fries with that' while serving you a burger   It's important for attendees to realise they are getting basic foundational information at these short courses and to investigate, before they attend, how they plan to round out…[Read more]

G'day MarkWelcome back and thanks for the PM.  As I mentioned in my answer to your PM, just because you're currently living in SA may not rule out your interest in Lease/Options.  We live in NSW and now do vendor finance transactions throughout Australia so, if that's the way you want to go, don't let SA rule it out  Cheers,  Paul

Hi Dkb87Your situation is about the same as ours after we did our first 3 or 4 transactions, i.e. we were out of useable equity (money).  We say we started the lazy way, i.e. using equity, but it was good to experience the mistakes we made in buying properties and on-selling them.In the end most of us end up without money wondering where to start…[Read more]

Hi Dkb87That's how we started, i.e. we had some equity in our home and we bought some properties and on-sold them with vendor finance (VF).  However it didn't take us long to realise that we were just setting up a cash flow business.We always believed that our long term wealth would come from the equity we own in property.  So, initially, we u…[Read more]

Hi mattAbsolutely agree that many sellers have very traditional attitudes to selling their properties but, so far today, I've had two landlords ring me, interested in selling their poor performing IP's in St. Kilda East, Vic and The Entrance, NSW.With capital gain as it currently is, we're getting three to four of these enquiries per…[Read more]

Hi ScottWe find that the primary goal of our buyers is home ownership and, once they're on their way towards that goal via a purchase with vendor finance, their secondary goal is getting the Title in their name and refinancing into a traditional loan, with a lower interest rate.NSW has had a pretty abysmal capital gain environment since 2004…[Read more]

G'day TerryI'm sure the discharge department would diligently file it away in the appropriate receptacle  Cheers,  Paul

As far as I know, no traditional lender, i.e. bank, building society, etc, will allow you to 'compromise their security', i.e. breach their loan agreement.  If you look at most standard mortgage documentation, you need to get their approval to renovate the property, sell the property and rent the property, among other things. Obviously both they…[Read more]

Hi grimnarIf you were helping other people sell their properties with vendor finance, you would be able to operate as a an authorised Credit Representative.You mention business/trust/individual.  This could be three separate legal entities.  The question is, when each of these entities is selling it's assets with vendor finance, how many can it s…[Read more]

Hi grimnarAll go straight to your questions:1.  Most people starting a real estate vendor finance business start off using regular residential investment loans.  There has been on-going discussion here for many years on the need for 'full disclosure'.  An earlier posting regarding this issue is at;  htt…[Read more]

Hi JohnI agree with Richard, i.e. the chances of you picking up the deals you're looking while you're out of the country are remote.  Most buyers agents will not have sufficient knowledge of vendor finance to talk a seller or agent through the process.As an example, here's an overview of the last Deposit Finance transaction we did. We watched the…[Read more]

Hi JosefAs your property is not as 'negative' as some I see, I would definitely look into the PAYG tax variation mentioned above, along with some research into how much a depreciation schedule may help.To help with get your head around vendor finance and where to start, our website  http://www.negative2positive.com.au may help.Cheers,  Paul

Hi WakeWe went looking for a positive cash flow real estate model in 2002 and stumbled on vendor finance.  We got started in 2003 and have stuck with it to date.We've always believed that our long term wealth is in the equity we have in property so we use the positive cash flow from our vendor financed properties to support our long term by and…[Read more]

Hi MickWe don't utilise traditional real estate agents to market our vendor finance (VF) properties but we've heard of a handful of VF'ers that do.  Unfortunately I don't have any real feedback on how that's gone for them.  I guess it would depend on what commission rate you could negotiate.Our marketing consists of:SignsClassified ads in local c…[Read more]

Hi scha9799Presupposing the Sellers are willing to wait for their money and that's pretty unusual with a relationship breakdown, I'd help them sell their property to the Buyers, probably with a vendor finance Instalment Contract.Standing in the middle of such a transaction would require that you look closely at whether you need Australian Credit…[Read more]

Hi Dkb87The Vendor Finance Association is a great place to meet vendor financiers in Perth.  Dates and details of Perth VFA meetings are available at:  http://vendorfinance.asn.au/meetings-and-memberships/I believe it's important to build a good foundation to your vendor finance knowledge and there are numerous educators to choose from.  Some th…[Read more]

Hi AlbroWe usually get charged around $1,200 to get an Instalment Contract drawn up by our solicitors.  However the incoming buyer pays this cost.Advertising.  We place each property on two free vendor finance (VF) websites and Gumtree (also free).  We also place each property on the two main traditional real estate websites. This costs us $1…[Read more]

Hi Ruth & AlbroRuth, apologies for the non functioning negative2positive (N2P) website. It 'went down' yesterday afternoon.  Our website person is madly trying to fix it and as soon as it's up again I'll PM you.Yes we do offer a service to help people set up a one off vendor finance deal.  Normally the site would send you a questionnaire about y…[Read more]

Hi propertyeclipse & AlbroPropertyeclipse I believe it's important to build a good foundation to your vendor finance knowledge and there are numerous educators to choose from.  Some that spring to mind are:Sean Summerville  –  http://www.thepropertyking.com.au/Rick Otton  –  http://www.rickotton.com/Dave & Julie Siacci  –  https:…[Read more]