hi guys, hoping someone will be able to point me in the right direction.
Who would be the best person to speak to about helping me put together a proposal to the owner of the house i am currently renting about purchasing it on vendor terms ?? i think its called ?? and in finding out more info on costs / etc. is a deposit paid ? etc etc??
I would love to buy the house we are currently renting but due to current circumstances (of a fixed loan, and own PPOR being rented out) i dont want to have to sell in order to do it. At present i cant borrow enough to be able to do both, even though i am able to afford to pay an additional $200 week more than what i am currently paying in rent.
I dont even know if the owner would be interested but i guess i just need a starting point to be able to suss it out.
If anyone could give me abit more info about how it works, or recommend any books / people to talk to it would be much appreciated!!Thanks in anticipation.
x natalieMaybe contact the owner informally and see if he is interested- there is no point in organising a formal propsal if he has no intention of ever selling.
Luke
And you have to remember that you have to be prepared to pay at least 10% premium over the market value for a deal like this to get accepted.
Luke
Ahhhh, 3 replies to the same post in as many minutes!!!!
I just remembered that there are a couple who do a lot of vendor finance on these forums- Paul and Karen Dobson. They may be able to offer some advice.
Cheers,
LukeHi Natalie and thanks Luke. I agree with Luke. Step 1, ask the owners if they're interested in selling the property. If they say yes, let them know that you're interested in buying th eproperty and what price do they think they'd want? This is possibly the price you'll have to pay for this type of transaction so, if it's acceptable to you, let them know that you don't all all the money right now and would they be ok with a delayed settlement? If they seem interested and ask you how long you would need to delay, say 3 years.
At that point, it's time to leave them thinking about it. If you get this far, give me a call.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
thanks so much luke and paul for your responses.
yes i guess i need to establish that first. the property is currently managed through a property manager – is it wrong / rude to bypass him and deal with the owners direcly though ?? their contact details are not on any of the lease forms i have. would the local council be able to provide these details to me?So paul, can you please explain abit more about how it works ??
is a deposit paid to them ?? as vendor financiers do you act as the 'bank' and are regular 'inflated' weekly payments are made to you, in return for providing funds to vendor ? if we dont settle for 3 years, are we allowed to renovate / modify the house in that time before it settles, ?? The house is screaming out for some repair / renos, so my thinking is to be able to improve / add value in that time, then refinance.i really should have checked out your website before i started writing this, (sorry) il go have a squiz now. this is totally outside the square of anything ive ever considered, so i do apologize if it seems like i have no idea.
thanks again
x natalieHi Natalie
Right now, without thinking about it too much, I can think of 3 vendor finance strategies to buy the place and one delayed settlement process.
Yes try the local council to get the contact details of the owner. The property manager is just managing your residential tennancy. You are always at liberty to approach any owner directly.
Let me ask you a question. Would you let somebody into your property, who wants to do renos for no money down, i.e. no deposit? Probably not but, depending on how the transation is structured, the deposit required could be quite reasonable.
Another way of describing Vendor Finance is Owner Finance. We aren't the owner and will neither act as the bank or charge you weekly payments. Your weekly payments would be paid to the Vendor, or the company they hire to administer their loan to you.
We may however assist to put a transaction together that works for you and the owner (if they are interested).
We have negotiated transactions where repairs and renos have been allowed.Right now, back to my original suggestion. That is, find out if the owners are interested. Without that we have nothing
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
thanks paul,
i have a deposit available to use, im just trying to get my head around how it all works. if i have any luck il be in touch.
thanks again
natalieHi Natalie
If you'd like to learn more about real estate vendor finance in Australia, I suggest you do a search for Vendor Finance here and in the Somersoft forum. You'll get an immense amount of reading material in both these forums.
A few web resources that may help in your search for information about vendor finance are:
https://www.propertyinvesting.com/strategies/wraps
https://www.propertyinvesting.com/strategies/lease-options
http://www.jvpropertypartners.com.au/index.php?option=com_content&view=article&id=50&Itemid=75
http://www.vendorfinancelawyer.com.au/
http://www.vendorfinance.asn.au/ The Vendor Finance Association of Australia
http://www.vendorfinanceinstitute.com.auIn the meantime I wait to hear what the owner has to say.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
