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When i posted here a month or so ago under creative deals i was blasted for looking for JV partners, i was open and honest enough to discuss fee's and terms etc and some details of what our business did and i came away feeling quite "bullied"….i am a robust personality however and recognise that the people who jump heavily on others are often the one's with the most self doubt so having been a listner of the forum in the past have decided to continue to be a contributer….but unless someone is personally attacking you as an individual lets all give each other room and opportunity to discuss, offer opportunities and be part of an encouraging open community….most of the time i think we are an interesting bunch….tho how some of you guys find the time to post so much idont know! full respect from me!! i am a Mum of 3 yr old twins. work in the emergency services on a roster nght/day, business and manage a property development business too….i'd love to spend more time here with you guys but its hard….so be gentle wth each other….there's plenty of people in the world will put you down…dont be one of them unless its really necessary!
Hi guys
Paul sums this all up very well, you have to have the right legal frame work in place. To protect you, the owner and the person you are on selling/leasing to.
It is very similar to a wrap or more recently a sandwich lease. The benefit to the original owner ( who maintains a caveat over the property so they dont misss out at all, is if all goes wrong they have los tnothing, they just earnt good rent for the agreed period of time and now are back where they were, looking to sell. The advantage to you, the "man" in the middle isyou may be paying the owner x amount in rent but charging your potential buyer a little more ( the option fee as oposed to the rent) for the opportunity to enter the property market as an owner….which is becoming harder and harder for decent, hard working Aussies on normal wages…..who has a 10% deposit (or more!) saved plus legals and stamp duty fees? But they can surely afford to pay a mortgage and this gives them the opportunity to demonstrate to the bank their reliability,
sure there are problems and potential hurdles, pre screening of your purchasers thoroughly is essential but potentially this is a win win situation for all involved. I love this set up when its done ethically and legally and properly all walk away satisfied!Hi guys
If you join the vendor finance association there is heaps f infrmation on this stuff as there are multiple ways of structuring the transactions to benefite vendors and purchasers. They can also recommend solicitors who are familiar and comfortable with the lease/option paperwork. It does work exceptionally well if structred correctly. Good luck!Hi there
it is such a shame, but as you say there are always bad eggs out there in any system. I am myslef, and know alot of decent people running rent to buy business in the Vic areas and the schemes not only help out the vendors who cant move their property on the traditional way e.g due to negative equity, but also help out people who want to own a home, can fully afford the mortgage but struggle to save the 20% deposit the banks require whilst living and paying rent.even on a $350,000 dollar home that means trying to save around $70k plus stamps etc….hard on even a really decent wage!
So it is certainly a scheme that can benefit all involved if it is run in the proper manner.
but there are always dodgy charecters everywhere i guess!
