Hi all,
I have been looking at properties with my local real estate agent and mentioned that some of the more challenging rentals might be overcome via vendor finance, so the tenant is turned into an owner. He said that was impossible in Victoria and it was just a scam that he was taken in by a few years ago! Well, I didn't (and still don't) know what to say! Has any one any advice? And does anyone know of a good financial adviser for property investments in South West Victoria?
Thanks in advanceCertainly not a scam and is a strategy which we have used to great effect here in Qld and i know Steve has done so in Victoria.
Same like anything that an Agent doesnt undertstand he merely states it cant be done.
Richard Taylor | Australia's leading private lender
helen what do you mean by a challenging rental?
what sort of solution do mean?
Regards
Hi Helen
I must agree with pully on this one – what on earth is a challenging rental?? I'm going to guess that you mean the amount of the rental is too high for most tenants? Although, that's probably not where I'd start looking for VF deals, as obviously the owner has to like the whole idea, and chances are if they're asking too much to rent the place, they're not going to want to give away future profit by selling it today for basically high rent payments??
Anyhoo, vendor finance certainly isn't a scam. There are some legal difficulties with it in South Australia, and I think in WA you have to be registered, but I'm pretty sure it's still open slather in Vic. However, I certainly wouldn't be suggesting it as a strategy to a real estate agent if I had no idea about how to go ahead with it. Your chances of just bumping into an agent who can put a VF deal together are non existent.
Somehow the real estate agent profession has positioned themselves as experts in the marketplace, when most salespeople got their qualifications in a week long course that cost them around $500! Unless they've been working successfully in the industry for many years, then your agent just isn't the expert they are promoting themselves to be. I would suggest that most investors with more than 2 houses have more knowledge about real estate than most agents these days.
As for who I know in Victoria, I certainly know a few people doing VF down there, but I'm not sure if they're in south west Vic. The other issue is, they're not what you'd call advisors, but some of them do take on JV partners to show them how to do VF deals if it's going to be profitable enough for them.
Cheers,
Andrew
pully wrote:helen what do you mean by a challenging rental?what sort of solution do mean?
Regards
Hi all,
thanks for the replies. It was the agent who mentioned that some houses he was showing me had a hard time getting stable tenants – because of the area. I simply said that perhaps if the tenants could purchase their house via vendor finance they would be less likely to commit vandalism or skip out on rent. That's when he said it was a scam. I have read Steve's book so that's why i mentioned it. I was not asking his advice or asking him to organise anything, I just (naively) thought I was talking about something ordinary.thanks helen now i understand what you mean. south west victoria is a nice part of the world some scenic areas and country towns with good bakeries!
good luck.
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