Hi RustyAs we are talking about a Lease/Option here, there is no ownership transfer of any kind until the tenant buyers "exercise" the Option and buy the property.  Therefore Stamp Duty is not payable until after the "exercise" of the Option, when the actual sale takes place.Cheers,  Paul

Hi RustyYes, the main challenge with your plan is the $110K deposit.  It would be unusual to get it but I'd still go to the Agent an let him or her know that you'll go with the idea if the buyers can come up with $110K.  You can work out the rest if they can get past this basic requirement.Cheers,  Paul

Hi TracyThanks for those details.  Based on your other posts I'm presupposing the current market price of the property is $650K.  On that basis I'd probably suggest you market it for around $682K, i.e. about 5% above market.The deposit level  needs to be flexible as you may get some high earners but they often have very little deposit.  Ide…[Read more]

Hi RustyWhat you are describing is a Lease/Option, i.e. a Residential Lease and a Call Option.  This would give the tenant buyers control of the property, with the Residential Lease giving them possession of the property and the Call Option giving them the right (but not the obligation) to purchase the property at anytime during the term of the…[Read more]

Hi HiravAre 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

Hi CoalstarAlways check with your lawyer and accountant but yes, you can write almost anything into an Option Agreement that both parties agree upon.  And if this Agreement is generating income for one of the parties, that income will have to be taken into account in its overall tax position.Cheers,  Paul

Hi TracyTo answer your question, could you please let me know what you paid for the property?Cheers,  Paul

Hi TracyYep 50% does seem quite high but our Investors have still been getting an annualised return of approx 20% on the funds they contributed to the JV.Some then go off, having learned how to do it and go solo.  No sharing then    Some just like the return and do another JV.  One of these investors has told me that he'd rather make a profit on…[Read more]

Hi TracyYour questions are excellent and give me heaps of opportunity to stand on a bunch of people's toes    Please feel free to give me a call on 0447 973 235.Cheers,  Paul

Here's a bit more information on the mature age borrower, from a recent Vendor Finance Institute newsletter:Mature Age BorrowersSince the inception of the new National Credit Code, specifically it's Responsible Lending provisions, you may have noticed traditional lenders knocking back applications from mature age borrowers.This obviously caused an…[Read more]

Hi RoyceWelcome to the forum.  I hope you enjoy your time here.I'd suggest your first move should be to research and then do some more research   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/str…/lease-options http://…[Read more]

Couldn't agree more with Jason.  We started the lazy way   That is, we had equity in our home and used that to buy some properties that we then on-sold with VF.  Of course, you eventually run out of money and that's when you really learn how to run a VF business   One of our great learning points as we went along was realising just how fle…[Read more]

Hi TracyThe details of the Perth meetings of the Vendor Finance Association of Australia can be found at:http://www.vendorfinance.asn.au/meetings-and-membership_2.htmlCheers,  Paul

Hi TracyThe answer to your first question has heaps of "if's" and "maybe's" involved, so this answer has to be pretty general.  First up, if you are buying a property with VF for investment purposes, don't buy from a VF'er as they have already built their profit into the sale.  Buy in their market, i.e. buy with VF from "standard" sellers.  Not ea…[Read more]

Hi TraceyHere are some for a property in Brisbane's northern suburbs, Deception Bay.Purchase Price – $180,000 (this property was bought at a deep discount)Sold with an IC for $250,000 with an 8.05% interest rateTotal Profit in transaction – $70,000Positive cash flow per month $420, after ALL expensesAfter 2 years the VF buyers sold the property…[Read more]

Hi freeIn the current slow market we have found it easy to buy at a deep discount, with our purchase costs paid by the vendor and with terms from the vendor.  Recently we've bought properties using the following techniques:The property started at $299,000.  We bought it for $235,000 and, at the settlement table, the vendor gave us a $5,000 c…[Read more]

Hi TracyFirst up, thanks Sherry & Jason.  Flattery will get you everywhere Tracy, if you were to sell both properties with VF, I believe $1,000 pm +CF on both is very achievable.In answer to your question, "how do I go about securing my next one?"  I'd buy it with VF.  In the current slow market this too is very achievable, using either Deposit Fi…[Read more]

Hi TracyYes, properties are sold in the $650K price range with VF all the time.  Is the pool of buyers at this price point less than the pool of buyers available for a $400K house?  Yes but we still get plenty of enquires on the higher priced properties.If you sold both properties with VF, I'd say you could comfortably achieve $1,000 per month p…[Read more]

Hi TracyWithout the tenants being in the picture I would have suggested you considered selling your IP with VF but only if that made sense in the overall plan for your portfolio.  I never suggest selling with VF just for the sake of it as, ultimately it's the real estate you own that builds your real wealth.  As the tenants have 10 months to r…[Read more]

Hi TracyYes Steve used to have the Wrap Kit and Rick used to have the Wrap Pack. An alternative is to turn your vendor finance (VF) education into a profit making venture.  This of course presupposes that you have a property that would benefit you by its sale with VF or you could purchase a property and sell it with VF.In either case I'd suggest…[Read more]