Those questions in Matt's link are great but are more focused on what questions you might ask for a traditional sale.  As you are planning to sell with an Instalment Contract (Wrap) which is a credit contract, your questions need to be more focused on Responsible Lending.  Information from ASIC regarding Responsible Lending is available at:

http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Responsible%20lending

Cheers,  Paul

Hi Janiceh

From your question I'd guess this is your first vendor finance transaction.  If you haven't already I'd suggest you make sure you know about the rules, legislation and licensing that are attached to an Instalment Contract (often called a Wrap).  One of the following links is from our website but it is designed to help you understand what you need to know before you dive into supplying credit to a consumer:

https://www.propertyinvesting.com/forums/creative-investing/4346526

http://negative2positive.com.au/category/blog  (read both blog posts)

Also, have you got any foundational education in vendor finance yet?  It may save you a lot more than it costs.

I could give you the four main questions we ask prospective buyers but I believe you need to be fully aware of what's involved before you start talking to prospective buyers.

Cheers,  Paul

Hi Carmen

Richard's question above is very relevant.  More information on the subject are available on our website at:  https://vendorfinanceinstitute.com.au/home/?page_id=10  and at this recent post regarding vendor finance and licensing:

https://www.propertyinvesting.com/forums/creative-investing/4346526

Also, could you let us know if you have done a vendor finance education course yet?  Thanks.

Cheers,  Paul

Hi big cat

Welcome to the Forum.  We hope you'll enjoy your time here.

What you need is an amortisation calculator.  There is a good one here:

http://www.mortgageworldaustralia.com.au/calculators/amortisation_calculator.htm

Cheers, Paul

Hi gags

It's just a personal opinion but I won't sell to someone, using any form of VF, until they're discharged.  Of all the mistakes we've made since we started in this business, the one that always comes back to bite us the most is rushing the choice of your buyer.  It's natural because you have holding costs but the grief it causes down the road easily surpasses these holding costs.  The voice of hard earned experience 

Cheers,  Paul

Hi gags

I've been told that it's illegal to give an undischarged bankrupt credit.  I don't know if this is factually correct but we've always taken it as correct.  This has left us with the option of selling the undischarged bankrupt a property with a Lease/Option (not a credit contract) but, the time involved to have the bankruptcy disappear off the credit report is just too long for us.

We've often sold with Instalment Contracts to discharged bankrupts and, overall, it's worked out well, i.e. we found their default rate to be the same as everybody else.

Cheers, Paul

It's great to see so many people interested in vendor finance.  To make sure you have a broad range of educators to chose from and to ensure you start to understand the Legislation and Licensing covering vendor finance, I'd suggest you have a look at:

https://www.propertyinvesting.com/forums/creative-investing/4346038#comment-275315   and

https://www.propertyinvesting.com/forums/creative-investing/4346526

Cheers,  Paul

Hi Belinda

I noticed in one of your other posts that you've already been to a seminar on how to buy a house for a dollar, so here's some more information on the other VF educational resources out there.  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

Feel free to give me a call if you'd like to talk about some on the job training ideas.

Cheers,  Paul

For a free one, I find  http://www.onthehouse.com.au  to be quite good.

Cheers,  Paul