A new lease option alternative. VOrP

Viewing 5 posts - 1 through 5 (of 5 total)

rossolot
Member
@rossolot
Join Date: 2002
Post Count: 10
October 20, 2004 - 10:00 am
Hi all,
I was wondering if anyone else has heard of a VOrP (Vendor Originated Purchase) I have recently sat through a presentation from a company that is offering ethically positioned lease option deals. It sounded to good to be true and was wondering if anyone else had seen the VOrP presentation.
If so what have been your thoughts.
Optimistically Curious
Rossolot
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
October 20, 2004 - 11:20 am
Hi Rossolot
I haven’t heard of these before, could you please give us a quick run down??
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
family.man
Member
@family.man
Join Date: 2004
Post Count: 12
October 22, 2004 - 3:56 am
Do you intend telling us a little more about this system, or are your trying to guage interest in your own system you simply put forward as someone elses?
rossolot
Member
@rossolot
Join Date: 2002
Post Count: 10
October 25, 2004 - 6:24 am
Hi all,
Sorry about the delay I have been offline for a little while.
I responded to an advertisment by a large spec home builder who has just started what I call
a lease option. They are matching up their existing punter who can’t get finance with me the investor. The punter pays rent to the value of 7.39% P/I for the house/land package for a minimum 3 years. I can get finance thru them at 4.99% first year 5.79% second year then .6 below variable. after 3 yrs the buyout figure is 5% above the package price.
I don’t know if there is anything else I should be asking them.
It sounds good.
Rossolot
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
October 25, 2004 - 7:09 am
Hi
Doesn’t sound very attactive. You may make a bit of cashflow, and then 5% on the purchase price after 3 years. It could be worth 20% more by this stage. And when you take into acocunt your costs like stamp duty etc, you will make hardly anything. Most LOs have a 20% margin on the price and a 3% margin on the interest rate.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au