Hi all i'm quite new to all this but i'm aware that in victoria you have to pay stamp duty up front in a lease option and the way to get around this is by doing a joint venture.
my question being how exactly does the joint venture work in this situation ?
Hi Tom
We use Joint Venture (JV) agreements for most of our vendor finance transactions. Around 50% of our core business is JV's with investors who want to get into vendor finance (VF). This involves buying a property traditionally and then on-selling it with VF. The other 50% of our core business is JV's with frustrated, negatively geared landlords. This JV involves our negative2positive process, i.e. selling a poorly performing IP with VF to improve cash flow.
In both cases we don't need to use a lease/option during any part of the transaction. Unless we decide to sell with a L/O but that probably wouldn't be the case in Vic
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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