Hi, We are in a possition to sell a property. There is no mortgage left on it and we would like to try a vendor finance. It has been some years since we listened to the tapes on this but I do remember it was a win win for the vendor. Is there a kit available or can some one point us in the wright direction.
Cheers
Glauco and Brineen[strum]There are two types of Vendor finance.
1) Lending the deposit to the purchaser. Usually called ‘vendor finance’
2) Selling to the purchaser using an installment contract. ie they pay you off in installments over 25 years. Your role is similar to the bank, but you keep the title in your name till they make the last payment.
With option 1 you get most of the money up front, and then arrange a payment schedule for the rest – eg. monthly payments over 5 years etc.
With option 2, you may get a small deposit, but will only get the remainder slowly over a number of years.
Which strategy are you referring to?
Terryw
Discover Home Loans
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Send an email to get my newsletter.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Glauco and Brineen,
Vendor finance is not something “you try”, it’s a commitment on many levels and there is ongoing work to be done ( which you may want to contract out like we do with property management).
So apart from the technical knowledge, there are other aspects of the transaction you need to be aware of.
I would therefore suggest you;
a) seek out the technical knowledge you need and be 100% clear on how it works and how to promote it
b) speak to a solicitor who has put together (and dismantled) a good number of vendor finance transactions
c) spend some one-on-one time with an experienced vendor financer, not necessarily a “wrapper”, and get up to speed on the good and the bad.
Then if you still think it’s something you want to do, go for it!
Enjoy
John Blackburn
http://www.propertybooks.com.auWhich State is the property located in ?
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
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