Using vendor finance homes to build a property portfolio

Viewing 7 posts - 1 through 7 (of 7 total)

Hamilton21
Member
@hamilton21
Join Date: 2006
Post Count: 2
October 23, 2009 - 4:31 am
Hello every one,
I would like any ones ideas on building up a res property portfolio using vendor finance homes / deals!!!
Example; Buy one property and rent it out using vendor finance to purchase it, once this one is running along smoothly and have enough money in the bank to cover any cost for least six months! Then move on to the next property………
mattnz
Participant
@mattnz
Join Date: 2007
Post Count: 574
October 23, 2009 - 6:18 am
You should read some of Steve McKnights books.
kevroy99
Member
@kevroy99
Join Date: 2009
Post Count: 3
October 23, 2009 - 10:09 pm
Hi all need some advice
I have found a motel nsw west 46% yeild L/hold $300k nets $139 and vendor finance $150 k/ 3 yrs +1%on current rates freehold worth 1.5 mil 21 units broker suggests refinance on our private home equity $160k with bank….Broker wants us to pay $1100 upfront to apply for finance says banks dont pay commissions any more does this sound right and does all this sounds too good to true .
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
October 25, 2009 - 9:54 am
kevroy99 wrote:
Hi all need some advice
I have found a motel nsw west 46% yeild L/hold $300k nets $139 and vendor finance $150 k/ 3 yrs +1%on current rates freehold worth 1.5 mil 21 units broker suggests refinance on our private home equity $160k with bank….Broker wants us to pay $1100 upfront to apply for finance says banks dont pay commissions any more does this sound right and does all this sounds too good to true .
Sorry, I am finding it difficult to understand what you wrote above. Would you mind rephrasing it? Banks still pay commissions, but not as high as before – but not all lenders do and not all deals, especially commercial.
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
Hamilton21
Member
@hamilton21
Join Date: 2006
Post Count: 2
October 25, 2009 - 1:56 pm
mattnz wrote:
You should read some of Steve McKnights books.
Thanks for your reply Matt and what book would you recommend to start with as there is a few books around!
Sincerely
Paul
kevroy99
Member
@kevroy99
Join Date: 2009
Post Count: 3
October 26, 2009 - 3:19 am
Sorry didnt explain myself properly my main concearn was my Finance Broker wants me to pay him the $1100 upfront before he talks to the bank about finance is this normal?As you can guess this is the first time i have done this sort of thing thanks heaps for replying..
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
October 26, 2009 - 3:21 am
kevroy99 wrote:
Sorry didnt explain myself properly my main concearn was my Finance Broker wants me to pay him the $1100 upfront before he talks to the bank about finance is this normal?As you can guess this is the first time i have done this sort of thing thanks heaps for replying..
Yes it is common in many cases, especially commercial ones.
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