Hi eclz4

All you mentioned in your post is possible.  Just FYI, if it were me I definitely wouldn't do it.  It's been our golden rule since we got into vendor finance in 2003 that we don't deal with family and we have had a lot of requests.  It's saved our butts in a couple of cases too.

Obviously it's your decision and if you let me know what…[Read more]

If it were me, I'd check with the local council to see if it is possible to make the conversion legal.  And, if it is possible to make it legal, how much that would cost.  Without these facts in hand, I wouldn't spend a penny on the place.

Cheers,  Paul

Alexei and Ilva, this may be possible in the UK but the situation is quite different in Australia.  Once a writ of possession has be obtained in the courts in Australia it is very unlikely that a lender would risk selling other than by mortgagee auction, as this would leave them open to a claim that the property wasn't sold at market…[Read more]

I am guessing that the site mentioned to access details of properties, just before the bank forecloses, is simply a nation wide court list.

In a default situation you have a reasonable chance of helping a distressed borrower while the 'default file' is still with the Collections Dept.  But while the file is with the Collections Dept it's not in…[Read more]

Shades of the late 90's, i.e. the mortgage reduction industry using lines of credit and a credit card and over priced IP's via two tiered marketing!

Cheers,  Paul

As well as supplying the information requested by Richard, could you tell us if you have approached the seller/agent to see if s/he would 'carry back' the deposit for you?

To get such a conversation going, just say to the agent that you're happy to pay the asking price but you'd need a little time too sort your finances. So, could the agent ask…[Read more]

We feel reasonably lucky in that our income accelerator is the cash flow from our vendor finance properties, i.e. we didn't have to move out of real estate to establish our income accelerator.  This positive cash flow now supports our buy and hold portfolio and our lifestyle, i.e. we live off it.

Cheers,  Paul

Hi Donavan

With respect to our chosen niche, i.e. vendor finance (VF), we were well past 40 when we did our first VF transaction in 2003 and both my wife and I had moved, full time, into our VF business by July 2009.  We now use the positive cash flow from our VF properties to support our buy & hold portfolio and to live off.

Cheers,  Paul …

Hi Ilva & Alexei

Unfortunately your suggestion of a sandwich lease/option won't work in Victoria with regard to the non payment of Stamp Duty.  As mentioned above, when you take control of a property in Victoria with a lease and an option, Stamp Duty is immediately triggered.  Hence, with a sandwich L/O (sometimes called a back to back L/O) Stamp…[Read more]

Hi Donavan

One alternative you may not have thought of is vendor finance (VF).  I've seen a number of people get going in VF without much money.  As with most things, it's not a get rich quick scheme and your success will be  locked to your 'stickability' – persistent pays    Here's some information on vendor finance (VF) educational…[Read more]

Hi Scott

That should be pretty easy 

Cheers,  Paul

Hi Dan

I'm not a mortgage broker but I'm sure you'll get what you pay for    Not putting a long term finance plan together with one of the terrific brokers here is, I think, pretty short sited as, I'm sure you don't want what you're doing now to hinder your future plans.

Cheers,  Paul

Hi Tony

Read above a bit more regarding flipping using options and other legal paperwork.  These methods should not involve GCT.  Of course, don't believe me as I'm not qualified to make such a statement, i.e. check with your accountant or other relevant professional.

Cheers,  Paul

If you check out the Conveyancing (Sale of Land) Regulation 2010 – Schedule 1 you'll see that the drainage diagram is a prescribed document, i.e. it has to be attached.  You can view this requirement at:  http://www.austlii.edu.au/au/legis/nsw/consol_reg/colr2010311/sch1.html  (point 2).

Cheers,  Paul

Hi Scott

I'd suggest you add a bit of lateral thinking to find a form of paperwork that will get you the result you want that doesn't include an Option document 

Cheers,  Paul

Hi Dan

As well as the processes Richard mentions above, if we wish to flip a property, we control it with a Call Option that contains what we call a 'Higher Price Clause'.  This Higher Price Clause, in short, allows us to flip the Option at a price of our choosing, without the new buyer knowing what we got the property for.  Good luck.

Cheers, …

The Property Manager could have applied to the CTTT when they delivered the eviction notice. They don't have to wait until the 24th and the CTTT application can be withdrawn if the rent arrears are paid up.  They should also be working with you regarding a new Managing Agency Agreement and putting in the correct forms to transfer the rental bond. …[Read more]

Hi Mike

Another alternative is to check out the properties currently being offered.  My four favourite spots are:
1.  http://www.renttoownhome.com.au
2.  http://www.vemdorfinancedirectory.com.au
3.  http://www.gumtree.com.au  and
4.  the local community newspaper in the area you'd like to buy in. Look in the classified section, not the glossy real estate…[Read more]

Hi Daneo

Have a look at this WA Dept. of Finance document at Click Here.  I believe the first paragraph on page 2 is the relevant one but check with a vendor finance savvy solicitor.

In NSW, when I ring the relevant government department usually nobody knows what I'm talking about (they don't see many of them) but, when we put the Variation…[Read more]

Hi Daneo

Just a quick point on selling with vendor finance (VF) and Land Tax.  If you sell the property with a Lease/Option (Rent To Buy), as mentioned by Terry, you'll have to include Land Tax in your 'numbers'.

However, if you sell with a VF Instalment Contract you can submit a Land Tax variation form and the Land Tax liability moves to the…[Read more]