Hi,
We have found the perfect PPOR but due to limited equity in our IP due to lower than expected bank valuation, we come up short for deposit. We expect this situation to be better in 5 months -(tax return and savngs).
A friend did an odd settlement a couple of years ago with x money down at time buyers moved into the property and remainder was paid in 12 months time – so this has been playing in my mind as the vendor seems quite movitated to sell.
Has anyone done unconvential offers on properties before? Such as long settlement with minimal money down (ie $5,000k)? I know this is risky for the vendor as it is a long time to tie up a property with no real guarantee of a settlement & I assume the real estate agent wouldn't be happy about this either, as they normally recoup their fees from deposit money – not settlement money.
It is cheeky I know as all we stand to lose is $5k if things don't go according to plan. We sold a block of land once with the buyers only putting a $1k down but a quick 30 day settlement.
Anyway sorry for the ramblings – just trying to think outside the square.Haven't done it my self but read about it in a book called unlimited cash flow.
Usually the vendor is compensated for this finance they are providing you. Maybe you offer to pay the full asking price for the benefit of a finance. Or you offer to pay interest on the amount you have borrowed from the vendor when you pay the balance off in 12 months time.
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