Hi AngelinaUsing some form of vendor finance to help sell a property that hasn't sold, is a great idea.  The challenge with offering to "carry back" 20% is that your buyer's lender is probably going to give a thumbs down to the idea.  I ran into this same problem last week, when someone offered to carry back 20% of a property we were looking a…[Read more]

Hi bbWe bought quite a number of properties this way prior to the GFC and the new NCCP Act 2009.  Just like your transaction, this week a seller offered to carry back 20%.Over the last month or so I'd heard that lenders had been "lightening up" so I thought I'd give it a try.  I spoke with two of the most respected brokers from this forum and a…[Read more]

Hi KaneSounds interesting.  Do you know if it includes both ACL authorisations, i.e.1.  "Engage in credit activities other than as a credit provider", and2.  "Engage in credit activities as a credit provider"?Most Mortgage Brokers only need the first authorisation, so if the underlying ACL only has this authorisation, Mortgage Brokers will be fi…[Read more]

Hi TNAI'm guessing you're trying to refinance out of a Lease with an Option?  If the experts here in the Finance sub-forum can't help and your option term is running out, you may consider asking the Vendor to give you an Instalment Contract.As a matter of interest, if it is a Lease/Option, could you give us more details?Cheers,  Paul

Hi DanWe use Tom Forster for our Vendor Finance business in QLD.  His contact details are:Tom ForsterLitigation Law QueenslandPO Box 777 Main Beach Qld 4217Phone: 0428 777 007Fax: 5591 5571Email: admin@litigationlaw.com.auIf you exercise your option on the property, i.e. you buy the property, then you will pay stamp duty.  If you then sell to a…[Read more]

Hi MacWelcome to the forum.  We all hope you enjoy your time here.As Terry says, if you do a search, you'll find many posts regarding options.  You'll find two main thread types for options.  They are:1.  Using options to secure property, while you secure a DA and possibly do a development, or2.  Use options to buy (control) and sell prop…[Read more]

Hi BeeAll the States of Australian have different regulations regarding the Cooling Off period you are entitled too.  Roughly, it's five business days from exchange of contracts.  Hopefully you are still within the 5 days.  My suggestion, if you are unsure about all this, is to ring a solicitor, first thing Monday morning and get him/her to se…[Read more]

Hi RippahI'll just talk about the nature of the option you can use, not the challenges involved in getting a vendor to agree.I've got to agree with Terry, i.e. simultaneous settlements are nail biting affairs.  We've done them but, apart from the excitement   we had to find a way around the double stamp duty issue.As Terry says, assigning the opt…[Read more]

Hi DaveThanks for the phone call.  We'll talk later in the year.Cheers,  Paul

Hi BardonThis is the process we call negative2positive.  There are two sets of legal paperwork that you could use to achieve what you're looking for:1.  A Lease/Option or2.  An Instalment ContractCheers,  Paul

Hi SandyYou will get a lot of the information you need from the tenancy agreement pack you buy at the Newsagents.Then have a look at all the exact procedures you have to proceed through when you end up in the CTTT (Consumer, Trader & Tenancy Tribunal), due to problems with your tenant.  Oh and by the way, enjoy all the maintence calls, e.g.…[Read more]

Hi AdamWe're based in Port Stephens, NSW.Selling a property with vendor finance means you are selling into a market that's very different from selling to traditional buyers, i.e. traditional buyers can usually get a home loan.  For whatever reason, people who buy with vendor finance can't get a traditional loan and, on the whole, they're pretty a…[Read more]

Hi AdamThis may be an alternative for you.  Lets assume you have a $360,000, interest only, loan at 7.5%.  This gives you a monthly payment of $2,250 per week.I expect you could sell the property with vendor finance for $320,00, with a $10,000 deposit, at 9.5%, over 30 years.  This would give you a monthly income of $2,606 per month.This income mu…[Read more]

Hi MarkI might be tempted to buy a property and on-sell it with vendor finance, so it generates, say, $500 per month positive cash flow and then, buy another property with resonable capital gain prospects but negatively geared to the tune of $500 per month  Obviously that's a idealised example but buying buying one and turning it into a cash cow…[Read more]

Hi ScottyOne stategy that you could look at is real estate vendor finance.  We've been operating in this niche since 2003 and it's worked for us.  If you'd like to learn more about vendor finance in Australia, I suggest you do a search for Vendor Finance here and in the Somersoft forum.  You'll get an immense amount of reading material in both the…[Read more]

Hi KeikoBased on the lack of responses and my gut feel, I'd guess, probably not.Cheers,  Paul

Hi LindaLewis O'Brien is on Tony's list.  Another Victorian licenced solicitor that's very familiar with Lease/Options is Mel Ciampa. at Home and Housed, on 02 9804 7111.  Mel is based in Sydney but is also registered in Vic.Cheers,  Paul

Hi NatalieIf you'd like to learn more about real estate vendor finance in Australia, I suggest you do a search for Vendor Finance here and in the Somersoft forum.  You'll get an immense amount of reading material in both these forums. A few web resources that may help in your search for information about vendor finance a…[Read more]

Hi NatalieRight now, without thinking about it too much, I can think of 3 vendor finance strategies to buy the place and one delayed settlement process.Yes try the local council to get the contact details of the owner.  The property manager is just managing your residential tennancy.  You are always at liberty to approach any owner directly.Let me…[Read more]

Hi orangestreetThanks for your first very interesting post and welcome to the forum.  I know everybody here hopes you enjoy your time here.Yes, I think you're right.  15 years will be hard work but it is achievable.  We started our vendor finance business in 2003 and both Karen & I were out of full time employment by mid 2009.  Of course, we sti…[Read more]