Hi Jacob

So far I'd say it was a transaction where we took complete control of three properties for 3 x $1 options and the payment of $20,000 in arrears.  We sold the Deception Bay (Qld) property with vendor finance and have since been cashed out of that property for an excellent profit.  We've kept the apartments in North Parramatta (NSW) and Newstead (Qld) in our buy & hold portfolio and both are generating positive cash flow.

Cheers,  Paul

Hi Tanya

Here's some information on vendor finance (VF) educational resources.  They aren't free but, so far, I haven't been able to find a free VF course 

The Vendor Finance Association is a great place to meet vendor financiers.  Dates and details of meetings are available at:  http://vendorfinance.asn.au/meetings-and-memberships/

I believe it's important to build a good foundation to your vendor finance knowledge and there are numerous educators to choose from.  Some that spring to mind are:

Sean Summerville  –  http://www.thepropertyking.com.au/

Rick Otton  –  http://www.rickotton.com/

Dave & Julie Siacci  –  https://vendorfinanceinstitute.com.au/home/siacci-system-of-vendor-finance-1997/

Paul Zalitis  –  http://www.aussiewrapper.com.au/Cash-Flow-Investing.html

Gordon Ku  –  http://gordonku.com/

It is worthwhile researching all these educators and choosing one that suits your style.

Some other research locations are:

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

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

http://negative2positive.com.au/information/about-vendor-finance

http://www.vendorfinancelawyer.com.au/vendor_finance_intro.htm

I've got to be careful here about self promotion but as you are looking for help with your first transaction, have a look at  http://www.negative2positive.com.au

Feel free to call.

Cheers,  Paul

Hi Dane-o

I've never had a great deal of success converting long term tenants into vendor finance buyers but you never know your luck.

I've done a few 'numbers' on the property, concentrating on generating cash flow for you.  The scenario is based on buying the property at a good discount and on-selling it with an Installment Contract.  The pdf containing the 'numbers' is available by Clicking Here

Cheers,  Paul

The Vendor Finance Association have a meeting in Perth next Saturday.  The details are:

Saturday 8th December

Pagoda Restaraunt

112 Melville Parade (cnr Comer street), Como – 9367-0300

The meeting starts at 9am.  If you'd like to have breakfast beforehand, get there a bit earlier.

Cheers,  Paul

Hi John

On reading your post again and looking at the Rent To Own idea, I believe you would need to satisfy yourself that:

• These overseas buyers are for real – I've had some obvious overseas (Nigerian type) scammers respond to a couple of my VF ads
• Establish the income stream these VF buyers plan to use to service the rent and any on-going option fee
• Establish if these overseas buyers will have the necessary visas to be able to buy the property at the end of the option term

Cheers, Paul

Hi Belinda

Personally I'd go with Sheree's recommendation, i.e. get an accountant to do it.  While you're there you may want to have a chat about appropriate business structures for your business.

https://abnregistration.com.au/entity/individual/  looked like an interesting idea – possibly cheaper.  And I don't have anything to do with them

Cheers,  Paul

So true Sheree, I've been a fan of JV Agreements for quite some time now   They're incredibly flexible.

Cheers,  Paul

Bankruptcy stays on your Credit Report for 7 years from the time you're declared bankrupt.  Considering most bankrupts are discharged after 3 years, this leaves 4 more years before in disappears from their Credit Report.

Cheers,  Paul

G'day Terry

Tony, in my opinion, is the most experienced vendor finance solicitor in Australia, but he's only registered in NSW.

Cheers,  Paul

Hi scha9799

I'd suggest you ask the person who has offered to take the property from you on a Lease/Option (often called a Rent To Own), if she/he is planning to on-sell the property with another Lease/Option.  This technique is called a Back to Back Lease/Option or Sandwich Lease/Option and is often used by vendor financiers.

As a vendor financier myself I don't like Sandwich Lease/Options because , as the owner, you are giving away a huge amount of control of the property with the possibility that, if things go wrong, the person that took the first Lease/Option can just hand it back to you.

If the person that's trying to take control of your property is really serious about buying the property, possibly offer vendor finance but, offer this vendor finance by way of an Instalment Contract or Deposit Finance.  These two techniques are much more highly regulated and your position will be stronger.

Of course, I also suggest you get independent advice from an appropriate professional.

Cheers,  Paul