Hi Jeff

May I suggest you have a look at:
http://www.vendorfinanceinstitute.com.au
I declare an interest, in that we own Vendor Finance Institute Pty Ltd (VFI).  If you go to the VFI site, you can request an information sheet on your options at this point, including our new course aimed at coaching vendor financiers through the ACL application process.

The information sheet also outlines your other options, i.e. options that will still allow you to undertake vendor finance transactions without applying for the full ACL.

Cheers,  Paul

Hi chas

If caveat or 2nd mortgage finance isn't available, you may rectify the situation by selling the IP with vendor finance (VF).  A VF sale should generate positive cash flow at three points, i.e:
1.  The upfront deposit the new VF buyers pays.  Our experience shows this can range anywhere from $15K to $60K and can include the FHOG
2.   It should be possible to structure the sale so the property generates approximately $500 per month positive cash, for the life of the VF arrangement
3.  The back end profit.  This is the difference between what the new VF buyer owes you when they sell or refinance and what you owe to your lender.

We call this a "negative2positive" process and it's a great tool for re-structuring out of a tight situation and getting your relationship with your lender back into good standing.

Cheers,  Paul

Hi Josh

We buy and sell property continuously without Agent assistance.  A quick run down of what the seller and buyer needs to do in the transaction you mention is:
1.  The Sellers go to their solicitor and ask the solicitor to draw up a complete Contract of Sale
2.  The Sellers solicitor sends the resulting Contract to your solicitor and he/she does all the necessary due diligence
3.  The Seller and you both sign the Contract and contracts are exchanged
4.  A few weeks later the sale is completed.

If you're getting a loan to buy the property, there will be a few finance steps added to the process but they are completed buy your lender/broker and your solicitor and the Agent is not usually involved in those processes anyway.

Just my opinion but I'd be asking for a discount on the property of at least the full amount of the Agent's commission

Cheers, Paul

Hi chookstar81

This link should help:
https://www.propertyinvesting.com/forums/community/heads-up/4332885

Cheers,  Paul

Hi jackyngew

One section of our business revolves around our JV Partners buying existing properties, on selling them at a premium price with vendor finance and sharing the profits.  This is a great business and we're currently exploring an extension of this idea that includes the building of new residential property, as new builds usually have an amount of built in equity at the end of the build.

Our JV Partners expect our joint ventures to last for somewhere between 2 to 4 years, i.e. the time it takes for our vendor finance buyers to be able to transfer across to traditiional finance.

Not quite a 1,000 acre development but you never know

Cheers,  Paul

Hi Philip

In NSW we seemed to have a bit of a boost at the beginning of the year but that seemed to flatten out about 2 months ago and I'm sure it'll stay that way until after the election.  After that, the crystal ball gets a bit murky 

We focus on buying and selling and selling residential property with vendor finance and accumulating more long term buy & holds.

Due to the nature of vendor finance, we're able to pretty well fix our capital gain and cash flow from our VF properties.  This does help to save us from a lot of the ups and downs in the market place.

Cheers,  Paul

Hi Cattaby

It's possible that your current income level may slow up your portfolio building pretty quickly if you were to setup your next IP purchase as a negatively geared IP.  In the same situation I would look closely at making your next purchase a positive cash flow IP, with the plan that the positive cash flow from this property, supports your next, possibly negatively geared, IP.

Such an arrangement for you next two purchases will hopefully leave your serviceability intact so that you can go off and do it again with the remainder of the $150K.

Cheers,  Paul

Hi mookii

If you want to take possession of the property as well as have an Call Option on the property, you would need a Lease to occupy the property (if it's residential property, it would be a standard residential tenancy lease).

In Victoria, if you have take up a Call Option on a property and a Lease, then Stamp  Duty is payable on the full Strike Price of the Call Option.

Cheers,  Paul

Hi mookii

Stamp Duty is a State based tax and it would help if you could let us know what State you're opperating in as there are quite a few differences between the States.

Speaking only of "Call Options", most States only charge Stamp Duty on the Option Fee.  so if you pay an Option Fee of $100, you only pay Stamp Duty on that $100 (not the Strike Price).

However in Victoria, if there is a Lease associated with your Call Option, you must pay full Stamp Duty on the Strike Price when the Lease and Option are entered into.

Cheers,  Paul