Hi PaperChaser

Banks tend to get off peoples backs when loan repayments get caught up and repayments become regular again.  If you can buy a couple traditionally, more power to you.

However I like to buy properties with as little of my money in the transaction as possible.  I'm not saying that you don't give the vendors a fair price, you do.  You just negotiate with the vendor on how long you can take to pay off your debt to them and the repayment schedule that fits that arrangement.  With that done and the necessary National Credit Code checks complete, you ask the solicitor to draw up the Instalment Contract for you.  And you make sure that both parties get independent legal advice.

Cheers,  Paul

Hi Chris

It's been mentioned by Luke above and I too would suggest your friend look at selling one or two with vendor finance.  If you're able to buy one or two traditionally this may not be necessary but, if you can't get the finance, s/he may be able to sell you one or two with an Instalment Contract.

Your mention of a vendor finance transaction above is more like a Lease/Option (Rent To Own).  An Instalment Contract is more fully described at:

https://www.propertyinvesting.com/strategies/wraps

The information on Rent To Own's is at:

https://www.propertyinvesting.com/strategies/lease-options

Cheers,  Paul

They sell the NSW version at:  http://www.smokeball.com.au/ProductInfo/2649/P/9026/34058001

Cheers,  Paul

Hi Allan

Why not get your friend to see if the owners of the block would sell it to him with vendor finance.  My guess is he'd probably have to offer a premium price to the owners but they don't seem to have a very sale-able asset and they might be able to work a mutually beneficial arrangement.

Cheers,  Paul

Hi Johna

Welcome to the forum.  I hope you enjoy your time here.

As you are fairly new I'd suggest you have a good read of the information on this website about flips.  It's at:
https://www.propertyinvesting.com/strategies/flips
I believe it will answer your questions.

Cheers,  Paul

Hi yofruity

We often help people who are suffering from a small amount of negative equity (mortgage larger than value) with our negative2positive vendor finance (VF) process.  However 'upside down' to the tune of $100,000 is too much negative equity to handle, even for VF.

Yours is the second time in a week I've run across negative equity in the $100K range and trying to mark up the price of the property that much, for a VF sale, just isn't going to work.

Cheers,  Paul

Hi Zac

As I mentioned my VF contacts in SA are pretty well non existent.  However if you can contact a vendor financier in SA, give him/her a call and ask if they would be interested in receiving referrals from you.

We have a couple of people who are great net-workers and they refer frustrated landlords to us who are looking to try to turn their IP(s) from negative gearing to positive cash flow.  Possibly you could work out a similar referral arrangement.

Cheers,  Paul

Hi Zac

I haven't answered your post earlier as I've specifically kept away from SA due to it's difficulties with vendor finance.  I believe some people are still trying to make Lease/Options work there but they are 'somewhat' modified and, possibly, operating in a 'grey' area.  Happily 'deposit finance' is still allowed.

A good friend of ours , who had been building his VF business in SA for years, finally threw his hands up in the air a couple of years ago and moved to Vic so he could operate in a more friendly VF environment.  Are you stuck with operating in SA?

Cheers,  Paul

We use Office Autopilot but we found a good place to start was it's little brother Sendpepper.  Have a look at:
http://sendpepper.com?ref=450576

Disclosure.  That's our affiliate link.

Cheers,  Paul

I agree with Matt

Cheers, Paul