Hi shoooshooIf you are the investor, you have the underlying loan at the lower interest rate, i.e. whatever you can get a traditional home loan for these days.  But like buying a property to rent out, you still face the risk that there will be carrying costs between you completing the purchase of the property and getting a tenant or a vendor…[Read more]

HiWe started in vendor financed real estate in 2003.  As Karen, my wife, was a stay at home Mum, she was full time in the business right from the start.  I've got to say coming to the realisation that I could give up my full time job in 2009 was a great day.  As you can see, we weren't the fastest vendor financiers out of the blocks but we got th…[Read more]

Hi shoooshooIn most cases yes, people will buy with vendor finance (VF), knowing that they're paying a premium because they can't get a traditional home loan.  It's been estimated that approximately 20% of the Aussie population can't get a traditional home loan and, in our experience, they're not too happy about being locked out of home…[Read more]

Hi shoooshooA 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://www.jvpropertypartners.com.au…d=50&Itemid=75 http://www.vendorfinancelawyer.com.au/ http://www.vendorfinance.asn.au/ The Vendor…[Read more]

Hi shoooshooI'm with xdrew, i.e. think outside the box.  In the last two weeks we've had 9 people ask us for help selling their properties with Vendor Finance.  With traditional sales in a lot of areas moving at a snails pace right now, it's become much easier to get properties on vendor finance.Also, regarding your second property, if it were m…[Read more]

Hi DerekThanks for the link, very interesting.  I have been predicting for awhile that Lease/Options will eventually be regulated by the new National Credit Code (NCC).  Vendor Finance (VF) instalment contracts and mortgages are credit contracts and are regulated.I like the professionalism that's been brought to the VF industry with the i…[Read more]

Hi WonderwomanI noticed that was your first post here.  Welcome to the forum and I hope you enjoy your time here.The situation you have with your property in Townsville may be helped by what we call our negative2positive process.  In short, if you have the time, you sell the property with vendor finance with the aim of getting a premium price a…[Read more]

HiIn relation to doing it yourself, I'd suggest you make sure that you don't run foul of the National Credit Act.  An overview of this issue, as it relates to vendor financiers can be found at:  http://www.vendorfinanceinstitute.com.au/home/acl-pack/Some places to advertise your vendor finance property a…[Read more]

Hi NickOne way to turn your property from negative to positive cash flow is to use what we call our negative2positive process.  In short it involves selling your property with vendor finance.  Using this technique you sell the property for a premium price and generate excellent monthly positive cash flow, while the new buyers are paying it o…[Read more]

Hi ColinAs Terry says, you don't need a Certificate IV in Financial Services (Finance/Mortgage Broking) to offer a property with a Lease and an Option (Lease/Option, Rent To Own, Rent To Buy, etc).  Nor do you require an Australian Credit Licence (ACL).Any future requirement to have the Cert IV would probably be part of a requirement to have an…[Read more]

Hi KerryThe Gold Coast meeting details are at:http://www.vendorfinance.asn.au/meetings-and-membership.htmlCheers,  Paul

Hi KerryIn short, yes   Instead of a set of L/O paperwork between you and the seller and another set of L/O paperwork between you and the new buyer, we've tried to simplify the process by assisting the seller to sell their property with an Instalment Contract.  We accomplish this via a JV between the seller and the holder of the ACL (us).  Th…[Read more]

Hi TerryIn relation to s149 and those documents required by section 52A (2) (a) of the Act, I believe "Part 4 Options for purchase of residential property", of the Conveyancing (Sale of Land) Regulation 2010, allows the various required documents to be attached at the date of the Option.As you mentioned, the Contract does not come into being until…[Read more]

Hi KerryFirst up, thanks Terry, correct as usual  Kerry, it sounds like you are talking with some people who want to sell their property and are willing to consider selling it with VF.  This situation may lend itself to a back to back lease/option but the double set of paperwork and usual short term, I find, are not as attractive to a buyer as a…[Read more]

Hi KerryTo provide a tenant/buyer with a lease/option you need to have:1.  A lease that gives you the right to sub lease and2.  An option for longer than the option you plan to provide.Therefore completing a one page call option will not supply you with all you need.I'd suggest you secure the property with an appropriate lease/option.  Your so…[Read more]

Hi KerryI'd suggest you have a chat with Tom Forster regarding some of the things that can go wrong with back to back lease/option, especially if the paperwork isn't structured properly (ask him about the QCAT hearing in Innisfail).  Tom's contact details are:Tom Forster – PartnerLitigation Law QueenslandPO Box 1919, Broadbeach Qld 4218Telephone…[Read more]

Hi KerryI've couldn't agree more with Terry.  We've been running our Vendor Finance business since 2003.  I listened to a well known educator and once did my own paperwork for a VF transaction.  As murphy's law would have it, it stuffed up and cost a lot in lawyer's fees to fix.  It happened early in our VF business and I haven't tried to do leg…[Read more]

Hi AnitaI'd suggest you talk with Lewis at:Lewis O’Brien & Associates Suite 113 89 High Street Kew   Victoria   3101 phone: 03 9888 6388 fax: 03 9888 6366 email: info@lewisobrien.com.auCheers,  Paul

Hi PogitaAs ASIC requires Credit Representatives to operate "on behalf of" the licensee, the Credit Representative path probably won't work.I do now of an ACL applicant that had its ACL application knocked back due to a lack of prior experience.  What this Company did was hire in an external, appropriately qualified and experienced Responsible…[Read more]

Hi jczWhen we get our statements from our Direct Debit service provider, our income is declared, on the statements as "Investment Property Income".  We have always found this positive cash flow position has improved our serviceability calculations.  Within limits that is.  You've always got to be aware of not having too much exposure to one Le…[Read more]