Hi StaceyThat's a serious number of questions you've asked there.  The answers to which has only taken us 9 years to learn   Around 50% of our core business is doing what your describing in your post.  Our website on this process should give you answers to a lot of the questions you've asked.  It's at  http://www.negative2positive.com.auA few web…[Read more]

Hi AndrewOne of the best ways to find owners who may be interested in giving you the opportunity to buy their property via a Rent To Own, i.e. a Lease with an Option, is to contact owners who have had their property up for sale and are now in the process of putting it up for rent.  We find property managers to be a great resource in finding these…[Read more]

Hi slashOur "numbers" were similar to yours when we became interested in vendor finance.  We used that equity to buy some houses and on-sell them with vendor finance which generated some attractive positive cash flow.  Of course we eventually ran out of equity to keep growing and it was then that we really had to learn this business    However the…[Read more]

G'day BradGlad to see you and Monique are over the gastro.  We always use:Tom ForsterLitigation Law QueenslandPO Box 777 Main Beach Qld 4217Phone: 0428 777 007Fax: 5591 5571Email: admin@vendorfinancelaw.com.auCheers, Paul

Hi VivyI tend to prefer Instalment Contracts over Rent To Owns (Lease/Options).  The government regards an Instalment Contract as a real sale and pay the FHOG to eligible buyers.  However the FHOG isn't available for Lease/Options.Lease/Options also tend to have much shorter terms,  Often anywhere from 1 to 3 years.  This means you have to be in…[Read more]

Hi AllGetting ACL coverage via the Credit Representative path does have it's limits as the legislation requires all Credit Representatives to act "on behalf of" their Licensees.  It's worth looking at what this limitation means, with regard to the "provision of credit" and the "provision of credit assistance".If you provide credit, in the course…[Read more]

The Real Estate Buyers Agents Association of Australia has a web page on your question at:http://www.rebaa.com.au/index.php/members/how-to-become-a-buyers-agentCheers,  Paul

Hi Johk We discovered vendor finance (VF) in 2002 and did our first VF transaction in 2003.  Since then we have gradually built our VF business so that today we work in our business full time so, for us, it's been a great niche to get into.One important point to remember when thinking of doing VF, is that you're selling the asset to generate…[Read more]

Hi JovanThanks for an excellent overview and yes, we too have found a lender who is prepared to refinance Instalment Contracts.One point on Rent To Owns that will be worth watching is the current issue in WA were Consumer Protection say they plan to take two VF'ers to the Supreme Court for organising a Residential Lease for a tenant/buyer without…[Read more]

Hi AllWe discovered vendor finance (VF) in 2002 and did our first VF transaction in 2003.  Since then we have gradually built our VF business so that today we work in our business full time.  We received our education from many VF educators, including Rick Otton, Steve McKnight, John Burley and Joe Arlt.If you do decide to use the services of a V…[Read more]

Hi SamsonI'm no expert on VF in SA because I've tended to keep away from it as it's pretty unfriendly towards VF.  Instalment Contracts (sometimes called Wraps) are banned and I hear Lease/Options (Rent to Owns) have been limited to six months.The only VF technique I know that is allowed is Deposit Fiance, i.e. when you sell a property where the…[Read more]

Hi StewartThanks for your call and sorry we couldn't help with an Instalment Contract (IC).  As Richard mentioned IC's are controlled by the National Credit Code (NCC).Considering the dollar value of your unpaid payment defaults, I'd probably consider putting the house purchase on the back burner for awhile and get those payment issues to show as…[Read more]

Hi AlexI often suggest to investors to consider turning their IP from negative to positive cash flow by selling their property with vendor finance but only if it's a bit of a "dog".  In this case, if it were me, I'd keep it.Cheers,  Paul

Hi MauriceYou can buy the property with a vendor finance Instalment Contract (IC) but in this case it may be better to control the property with a Lease/Option (L/O).However the challenge with either the IC or the L/O is the security required for the construction finance, i.e. you aren't on Title and therefore can't supply this property as…[Read more]

As Richard says, if the Mum purchased with a vendor finance Instalment Contract the vendor would have to check her out as per the NCC's Responsible Lending requirements.She could of course take control of a property with a vendor finance Lease/Option, if all involved need to circumvent the NCC but it's very possible they won't get an Option term…[Read more]

Hi DarrenI notice you mentioned that you can't rent it because 'the money is needed'.  May I ask, how much of the money is actually needed?The reason I ask is, if you were to sell it with a vendor finance Instalment Contract, you may get sufficient money from the deposit to cover what's 'needed".  It's normal to get a $10K to $20K deposit and o…[Read more]

Hi Hirav So we can see what you want to achieve, are you planning to use Options to control property while you get a DA in place or are you looking to buy/control residential property with a view to on-selling it with vendor finance? Cheers,  Paul

The Vendor Finance Association of Australia can be found at:http://www.vendorfinance.asn.au/Cheers,  Paul

Hi EricWe use:Tom ForsterLitigation Law QueenslandPO Box 777 Main Beach Qld 4217Phone: 0428 777 007Fax: 5591 5571Email: admin@vendorfinancelaw.com.auCheers,  Paul

Hi RustyNow you're talking about an Instalment Contract (sometimes called a Wrap).  All you mention is possible but, before we start structuring your transaction, I'd suggest you do a little study Have a look…[Read more]