Use Vendor Finance To Buy An Investment Property?

Hi purple

As you are wanting this property for investment purposes I'd suggest you don't buy with vendor finance (VF) from a vendor financier.  The average client of a vendor financier is a person who is locked out of traditional home loan finance, for one or more of a myriad of reasons but is still wanting to get into her/his own home.  These people know they pay a premium price when they buy with VF from a vendor financier.

Buying and IP from a vendor financier would usually seriously increase your negative cash flow above that which a lot of investors in Australia seem happy to accept.

However it is possible to to educate yourself about buying property, direct from the owner, with VF.  There are many reasons why people will consider selling their property with VF.  It's just a matter of finding those people and learning a sufficient number of VF techniques, so you have a chance of coming up with a solution to their needs.

It's a pretty wide subject but if you do a search on "vendor finance" on this forum you'll find some great information resources on the subject.

Cheers,  Paul

Good news Paul

ps when are you coming to Sydney again?

This is a subject that I have been thinking about for some time. I was sent an e-mail about the Siacci System.
My question is has anybody heard about this but more importantly has anyone been to one of their seminars & are doing it successfully?
Thanks

Thank you Paul for your quick & honest reply.

I did some more research last night & I like the way Dave & Julie present their seminars. I watched the hour long video on their website after a Google search & scrolling through a lot of other sites to find what I was looking for. I do realise that any business takes work, especially to get started.

Although I have not invested in RE before it is something I have always had a passion for so I have done much research in the past. Unfortunately due to circumstances outside of my control, I have not been in a position to invest in the usual ways. I do have my family home though so that is a start. I just need the guidance on how to go about vendor finance & the legal's etc as I feel that this modality is the way to go for me right now.

There are plenty of bargains of quality properties in my area right now, which is a fairly new estate with restrictive covenants & an extremely popular area as houses do not usually stay on the market as long as other areas.

Even though there is a lot of RE for sale in my city, it is still one of the fastest growing areas in WA with rentals in high demand & my estate is the choice to live in over other areas in the city. I know my city very well, which areas to buy in & where not to go. <moderator: delete advertising>
 
I do have some other ideas where I can save money once I get started, using SMSF, where taxes can be brought down to zero on any capital gains & some income, especially at my age, to help speed up the wealth building process, which would benefit me greatly right now, especially at retirement.

Hi Terry

I didn't realise that I had to be as I have heard of other people in the past doing this without being licenced. Who's regulations state that I have to have a licence to help someone find a property to buy?

It is so typical where now so called "free people" are so regulated that they cannot do anything without paying for it.

It is unconstitutional too.

Hi Terry

Thanks for the info & yes I do understand what you are saying. The problem I have is that there are now too many rules & regs, always with money attached, on the population instead of regulating the greedy coporations that need it the most.

The 'free people' & 'unconstitutiinal' statements come from the fact that I have been studying this a lot lately & found that many of the laws, acts & rules we have been made to live under (mostly for the financial benefit of governments & corporations like the banks) are in fact illegal under our constitution.

It is unfortunate that many citizens of this country do not know their rights under our constitution, especially since it was stopped from being taught in our schools in 1975.

Just my beef right now so just ignore it if you have no interest in it, lol.

Many people do not realise that variable interest rates charged by the banks are illegal, so are council by-laws (we voted that one out in a 1988 referendum) but now accept it as a fact of life without questioning it. So parking & speeding fines are all illegal too.

There is so much more & unfortunately people are totally clueless as to the erroding of their rights & why it is happening.

Not many people know that under our constitution our government has the power to restore the financial balance & not be indebted to the banks. We shouldn't have a deficit nor be so highly taxed. A majority of our taxes go to paying the government's debt to the banks.

There are laws in our constitution where our government can make it's own money for infrastructure but instead allows the banks to create money out of thin air instead where they then charge us interest on this fictitiously created wealth.

Yes well Terry , that is the multi million dollar question isn't it? lol.

Not charging varible interest is actually written into our constitution, which is common law.. Common law is above every other law or act in the land & if the latter breaches the former, then the former prevails. There is now a tsunami of laws/acts which are in breach of our constitution, including the way some courts operate, like the family court.

The banks have held onto this monopoly for a very long time & it is extremely profitable so they will not give it up without a fight obviously. Taking them to court would most likely be futile when the courts also act outside of our constitution on many occasions & quite often are seen to support the banks (especially in foreclosure cases).

The only court to have ruled to uphold our constitution in recent times is the High Court.

In other courts I have heard of people reciving death threats for trying to upset the status quo & I personally know of a barrister that this happened to as well as a couple of recent murders. So please be careful as greed for money breeds corruption & it is rife in our society now.

Our most powerful weapon is always 'people power' but as I have mentioned, a majority of our nation's people do not know their rights & it would take a huge number of the population to have any effect.

Unfortunately us Australian's can be a very laid back people so getting people to 1/ educate themselves on their rights & 2/ then act on them, may prove difficult. My question to them is, "what kind of a place do you want to leave for your children & your children's children"?

However if we allow successive governments to keep eroding our rights we will only have ourselves to blame as things are only going to get worse. People of all walks of life are struggling to make ends meet & our homeless poulations are growing at a shocking rate. Unfortunately they now include families with children (living in tents & cars) where both parents hold down permanent jobs.

This is disgusting when we live in such a resource rich country – it has been badly mismanaged for years by successive governments (all parties) & the pressures for their greed & mistakes have fallen on the average citizen's shoulders.

Too much to bear for many.

If you are still interested in pursuing this, lol, I can PM you some web links & videos so you can do your own due dilligence.

Everybody should download a copy of their constitution both federal & states. We need to educate ourselves. I can PM the links if anyone is interested.

There is a thought going around which says "if you sleep on your rights, you will lose them". So true.

You didn't have to be sarcastic.

I said nothing about a court hearing constitutional matters. I said the High Court agreed with our constitution.

Common law can be used in any court because IT IS the law. The Commonwealth of Australia is a Common Law Jurisdiction and that all the Courts of Australia are Common Law Courts.

I didn't say that these threats came from the banks. You presumed that. I did not say where they came from.

I knew the barrister this happened to personally. This person was so scared that they left the law altogether, others have received threats too. It goes on all the time in certain circles.

The murders were as a result of a person claiming (in the supreme court) that another "certain" court was acting in an unconstitutional manner & also brought up allegations of lawyers taking bribes. It was in the news. It is all true. This evidence was presented by a retired police officer who was also well conversed in constitutional law & had been helping the murdered person in their case.

Many people have been led to believe that legislation takes precedence over common law but it does not. Do your own due diligence. Have you actually studied our constitution? It was put in place to protect the people.

The original Constitutional Commonwealth of Australia are still in operation and still exist for they can only be removed by a referendum of, for and by the people. The people of Australia have not voted in a referendum to have the Constitution of Australia removed. It still stands.

Just last year some citizen's in the UK arrested a judge for treason using common law. Their legislation was useless to prevent it.

People in Australia have successfully contested speeding fines, parking fines, paying council rates & charges using common law. Where was the legislation in these cases?

Some people do not want to believe this could be true because it would open up a pandora's box wouldn't it? Not to mention the revenue out of the window.

Having said that it must be done properly & in order & why these people have spent a huge amount of time doing their due dilligence. In the end the law (common law) prevailed.

Also please give an example of common law over ruling legislation