Hi Tamara

Would I be correct in thinking that you may be talking with Sellers about selling their home, without being an RE Agent or authorised RE Sales Rep?

If you are, may I suggest you have a look at Tony Cordato’s paper on the subject. To get access to the paper CLICK HERE. The relevant rule is Rule 4.

Cheers, Paul

Hi Rick

Thanks for your post.  As a full time vendor financier and one of your ex students I found it fascinating.  Good luck to you and the WA law society for backing that young fellow.

It's always been interesting to me to see how vested interests react to new ideas that threaten the status quo

Cheers, Paul

Hi Disco

Getting Australian Credit Licence coverage for these transactions will just be one of the  hurdles you face for this project, but it shouldn't be too difficult to jump.

Cheers,  Paul

Hi Ausprop

In NSW it's easy as you have to attach the Contract of Sale to the Option, so we just attach an Instalment Contract.

For WA, I'd suggest you get your lawyer to specify, in the Option, that upon exercising the Option the buyer will have the choice of a standard Contract of Sale or an Instalment (Terms) Contract with the following…[Read more]

Hi Disco

The hurdle you're facing revolves around the number of transactions you be undertaking, i.e. around 50.  Obviously, these transactions will be undertaken with consumers and 'in the course of a business' (ASIC's wording).

As both 2nd Mortgages and Instalment Contracts are credit contracts, in both cases you would be providing credit and…[Read more]

Hi Fox

As Tamara mentioned and in the interest of balance, both press releases can be viewed at:
https://vendorfinanceinstitute.com.au/consumer-protection-wa-our-industry-moves-forward/

Cheers,  Paul

Hi Paul

We have been working in the residential real estate vendor finance market place since 2003 and you may be interested in a blog post I've posted called '10 Mistakes to Avoid with Vendor Finance'. It's at:

10 Mistakes To Avoid With Vendor Finance

The Vendor Finance Association is a great place to meet…[Read more]

Couldn't agree more.  The cost to the country of the duplication and variations must be enormous.

Cheers,  Paul

Hi Ausprop

Regarding Instalment Contracts, Stamp (Transfer) Duty is payable, in all States except Victoria, within a certain number of days of 'exchange' of contracts.  In Victoria, the trigger for the payment of Stamp Duty is the transfer of title (for Instalment Contracts).

Yes, it is difficult to cover increasing interest rates using the Rent…[Read more]

Hi Phil

You may get a more 'friendly' price point in the Newcastle region and the market is not as hot as the current Sydney market.

Cheers,  Paul

Please take very close notice of Terry's warning regarding the the unlicensed foreign finance 'firm'.

Also, a number of people here have been alluding to Deposit Finance, i.e. the buyer gets an 80% or 90% LVR loan and the seller provides a second mortgage for the remainder.  In this scenario it's important to remember that the lender under the…[Read more]

Hi PCF

We have two small cheap vendor finance specific calculators:

The Joint Venture Calculator at  CLICK HERE, and

The negative2positive Calculator at CLICK HERE

Cheers,  Paul

I had a couple of comments in a VFI News I put out yesterday – CLICK HERE

Cheers,  Paul

Sorry about the broken link It's now fixed and here it is again;  CLICK HERE

Yes, the knock on effect for all seminar presenters may be interesting.

Cheers,  Paul

If the LOANS section of the Particulars of Sale section, on page 3 of Part 1 of the standard Contract of Sale of Real Estate has not been filled out, then you don't have a Contract that is subject to finance.

And paying the full 10% now places you in danger of the Contract going 'unconditional' at the end of the cooling off period, not the…[Read more]

Hi Phil

A list of vendor finance educators/mentors for you to consider is:
Sean Summerville – http://www.thepropertyking.com.au/
Rick Otton – http://www.rickotton.com/
Dave & Julie Siacci – https://vendorfinanceinstitute.com.au/siacci-system-of-vendor-finance-1997/
Paul Zalitis – http://www.aussiewrapper.com/
It's worthwhile researching all these…[Read more]

We were none of the aforementioned so we got good mentors 

Cheers,  Paul

Hi Bruce

I've got to agree with Terry.  We've been running our vendor finance business since 2003 and, without fail, every one of the the lease/options, instalment contracts, 2nd mortgages and deposit builders we use, to buy or sell with, is drawn up by our solicitor.

We also buy audit insurance from our accountant and we view using a solicitor…[Read more]

Hi Tom

We use Joint Venture (JV) agreements for most of our vendor finance transactions.  Around 50% of our core business is JV's with investors who want to get into vendor finance (VF).  This involves buying a property traditionally and then on-selling it with VF.  The other 50% of our core business is JV's with frustrated, negatively geared…[Read more]

Hi Phil

We have been working in the residential real estate vendor finance market place since 2003 and you may be interested in a blog post I've posted called '10 Mistakes to Avoid with Vendor Finance'. It's at:

10 Mistakes To Avoid With Vendor Finance

The Vendor Finance Association is a great place to meet…[Read more]