Hi Tracey

If you'd like to have a read of some great information from a VF specialist lawyer, have a look at:
http://www.vendorfinancelawyer.com.au

However Tony, is a NSW based and you're looking for a Victorian specialist. We use Lewis O'Brien for our Vic transactions. His contact details are:
Lewis O’Brien & Associates
Suite 113
89 High Street
Kew Victoria 3101
phone: 03 9888 6388
email: [email protected]

Cheers, Paul

Hi PJ

On average we work it so that one property sold with a vendor finance Instalment Contract will support one buy and hold of approximately the same value.

For most of our JV partners this turns into two +cf properties to one buy & hold while they're learning, i.e. most of our JV partners want to learn how to "do it" so they share the profit from their first one or two +cf properties.  After that they should be in a position to "go solo" and get into a one for one position.

This allows them to have a "hands on" learning experience, as against sitting in a room with many others, learning the theory.

Cheers,  Paul

Hi Corza

We started our Vendor Finance business on a part time basis and as it grew Karen, my wife, moved into it full time, followed by me later.  Of course we could have stayed part time if we'd wanted but it had been our dream to have our own business for many years and, after many false starts in other business enterprises, we obviously got our heads right for this business and took all the action that was necessary.  Although we have seen people go full time more quickly than us 

I'm not quite sure what you mean by "come rates time" but, if you mean council and water rates, the vendor finance buyers pay all the rates.  If you mean how do we handle paying the negative cash flow each month on our -cf properties, our +cf properties pays all that, along with paying for our lifestyle.

Cheers,  Paul

Hi Clint

We too use Tony Cordato.  His contact details are:
Cordato Partners
Level 5, 49 York Street
Sydney NSW 2000
P (02) 8297 5600
F (02) 9290 2784

Cheers,  Paul

Hi Darryl

You mention your living a a growing town with a population of 5,500.  This size town would probably support at least one vendor finance (VF) transaction, i.e. buy a "standard" family home and, instead of renting it, on-sell it with the help of VF.

This type of transaction will typically give you positive cash flow at three points, i.e. the deposit as the new VF buyers move in, approximately $500 per month positive cash flow (after all property expenses) and a back-end profit when the VF buyers refinance into a traditional loan.  The back-end profit is the difference between what you buy the place for and what you on-sell it for, with VF, less what the VF buyers pay off while they're with you.

Another interesting point about this type of transaction, is that the profit generated by the complete transaction, will often be sufficient to buy two more of the same.  For us, fixing our positive cash flow and our capital gain has been great for future planning.  It's meant that we haven't had to rely on market driven capital gain and rentals.  Sure we might miss a boom or two but they've been a bit thin on the ground in NSW of late 

Cheers,  Paul

Actually the Polies are just catching up with what has been a talking point in the Lending world ever since the NCCP Act came in, i.e. Exit Fees have to reflect the real administrative cost of closing a loan and should not include fees for lost business opportunity.  Even ASIC's Regulatory Guides have been indicating this.

Obviously there is an administrative cost for closing a home loan/mortgage and if the polies think that banning exit fees will stop this administrative cost from being passed on, they're dreaming

Cheers,  Paul

Hi James

In relation to your question about whether you can buy a property on a Bridging Visa, I suggest you have a read of the Foreign Investment Review Board's brochure "Buying a Home in Australia" at:
http://www.firb.gov.au/content/publications/buying_a_home.pdf

Once you've ascertained if you can buy, I'm sure there are a lot of people here on the forum that will be able to give you information concerning the various operating Structures available.

Cheers,  Paul

I've been watching the various protests from local residents, protesting that the new NRAS projects are the slums of the future and they don't want them in their area.  I think I'll stay away.

Cheers,  Paul

Hi justine08

Yes we have been doing vendor finance transactions since 2003 and we're very happy we got into the business.

I've got to agree with all the comments here, especially Richard's comment that somewhere along the way, you are going to need "some" money.

One person also mentioned the "terrier" idea.  We call them "bird dogs"   They bring prospective transactions to the table and, if the transaction works, we do it on a JV basis with the "bird dog".  For one person we're currently working with it has worked and we're onto our second transaction with him.  However I'm surprised at his "stickability" as he's bought a lot of transactions to the table but only two have gone ahead.  And it's cost him a lot of time and transport costs.

Cheers,  Paul

Hi Martin

Tom Forster from Litigation Law Queensland does a lot of Lease/Options.  He should be able to help.  Tom's contact details are:
Tom Forster
Litigation Law Queensland
PO Box 777 Main Beach Qld 4217
Phone: 0428 777 007
Fax: 5591 5571
Email: [email protected]

Cheers,  Paul