Can anyone give me a list of questions to ask prospective purchasers so that I get good quality purchasers for my wrap.
How desperate are you?
What savings record do you have?
How likely is it you will keep up/meet the repayments? ie assess the likelihood of a default.
Proof of income/source of funds.
Guarantors/refereesHi Janiceh
From your question I'd guess this is your first vendor finance transaction. If you haven't already I'd suggest you make sure you know about the rules, legislation and licensing that are attached to an Instalment Contract (often called a Wrap). One of the following links is from our website but it is designed to help you understand what you need to know before you dive into supplying credit to a consumer:
https://www.propertyinvesting.com/forums/creative-investing/4346526
http://negative2positive.com.au/category/blog (read both blog posts)
Also, have you got any foundational education in vendor finance yet? It may save you a lot more than it costs.
I could give you the four main questions we ask prospective buyers but I believe you need to be fully aware of what's involved before you start talking to prospective buyers.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thank you both for your responses. My situation is that I cannot afford to keep the house I purchased five years ago. I cannot sell it in the current market and if I rent it, the rent will not cover the mortgage payments and I will be negatively gearing, paying out $600 per month plus rates, water and insurance. My only hope is to vendor finance the sale. I am madly searching for and reading information and I realise there's a lot involved, but I simply cannot afford to pay for a course at this point. So if anyone can give me any more information I would truly appreciate it.
Here is the great article that focuses on 4 major questions you should ask your home buyer before accepting the offer. Here is the link to it http://www.trulia.com/blog/taranelson/2011/07/4_question_to_ask_your_home_s_buyer. I hope it helps.
Hi Janiceh
We help people sell their negatively geared properties with vendor finance with a process we call negative2positive. I've got to be careful here not to be seen as promoting our business but, if you have a look at http://www.negative2positive.com.au there is information there to help you do what your looking to do.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Those questions in Matt's link are great but are more focused on what questions you might ask for a traditional sale. As you are planning to sell with an Instalment Contract (Wrap) which is a credit contract, your questions need to be more focused on Responsible Lending. Information from ASIC regarding Responsible Lending is available at:
http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Responsible%20lending
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Profiling the intentions your the prospective buyers is very important. I would ask them about what they like about the property to gauge their interest. Also ask them if this is their first property or if not do they have plans of selling the other property to buy this new one. Based from here you will know their urgency. Of course this should be done in a tactful manner. Hope this helps
Hi Janiceh
Other than vendor financed properties there aren't to many properties for sale that have finance included. Therefore most people who contact you will want the property, i.e. your job is not to sell the property but to qualify a prospective buyer. To ensure prospects know they must qualify, one of my first questions to them is, 'Do you mind if I ask you a few questions, to see if we can get you qualified?'
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.
