Is the vendor finance sector saturated with investors?

Albro

For someone who has run a Vendor Finance Company for a living here in Qld for some 12 years + there has always been a lot of desparate Vendors wanting to sell their over priced properties and assumed VF was the way to a golden rainbow.

You need to differentiate yourself from other VF providers and as long as you are licensed and can finance a deal the purchaser brings to you rather than a property you have for sale then there is no reason why you cant make a success in this creative area of financing.

Cheers

Yours in Finance 

I am interested in understanding more about vendor financing and rent to own opportunities. I am considering doing Rick Otton’s course to understand the vendor negotiation side of the strategy.

Can someone outline for me what would be required to become licensed?

Thanks

Paul

Tried to navigate to your negative2positive website by clicking on the link in your signature but while it goes to the page for bout 20 seconds it is then replaced by another page. Not sure if this is an iPad issue or some other gremlin. No pc to check your site on unfortunately. We are considering attempting to sell a property via vendor financing. I don’t see this as my general investing strategy, so don’t really want to go down the avenue of licensing etc., but I need to move a negavtively geared property on. Do you offer a service to help people set up a one off vendor finance deal?

Thanks
Ruth

Hi Ruth & Albro

Ruth, apologies for the non functioning negative2positive (N2P) website. It 'went down' yesterday afternoon.  Our website person is madly trying to fix it and as soon as it's up again I'll PM you.

Yes we do offer a service to help people set up a one off vendor finance deal.  Normally the site would send you a questionnaire about your property and once I get the completed questionnaire back, I can contact you with a few ideas.

If you PM or email me I'll send you the questionnaire.

Albro, my suggestion would be to steer away from your proposed plan as the chances of getting an owner to give you the Option you're looking for aren't good.  Once the  http://www.negative2positive.com.au  website is back up, have a look through that.  Also have a look at  http://www.jvpropertypartners.com.au  These two sites may help you get an idea of how to structure your transactions.

However I'd strongly suggest you get some vendor finance basic education before you try to 'go solo'.  If you don't, it's kind of like trying to fly a plane without any flying lessons – easy to crash and burn

Cheers,  Paul

Hi Albro

We usually get charged around $1,200 to get an Instalment Contract drawn up by our solicitors.  However the incoming buyer pays this cost.

Advertising.  We place each property on two free vendor finance (VF) websites and Gumtree (also free).  We also place each property on the two main traditional real estate websites. This costs us $150.  Our signs out the front of each property cost next to nothing.  Our newspaper advertising is always done in the classifieds of small community newspapers and the approximate cost is about $30 per week.

Holding costs. Recently a JV partner bought a property on which he 'settled' on one day and the new VF buyers moved in the next day.  However we always plan for 8 weeks of holding costs in this situation.  It rarely takes 8 weeks but it's a comfortable contingency.

After a VF buyer moves in, the resulting loan needs to be administered.  We have a specialist VF loan administration company do this.  However the cost for this service is built into  the VF buyers weekly payment.

Cheers,  Paul