All Topics / Help Needed! / Vendor Finance

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  • Profile photo of AndyAndy
    Participant
    @andyjones
    Join Date: 2015
    Post Count: 7
    July 1, 2015 - 2:18 pm

    Hi,
    I am currently reviewing an investment property to purchase (CF+ investment).
    The agent advises that the tenants are long term and actually looking to purchase the property but don’t have the deposit required.
    Is this a good deal profile to offer vendor finance? How much does it cost to set up?
    The property is offered at $150k and the tenant is currently paying $310pw and has been there for 2 years.
    The deal looks pretty good, with the key risk being the tenant vacating and re-letting at a lower rent, although I am confident of getting 8% GRR worst case.
    The question is how can I make this a better deal? Would Vendor Finance be worth the time/cost for this deal?
    Appreciate your expert help!!!
    Andy

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 1, 2015 - 10:42 pm

    Why buy to only sell. Why not just keep.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of AndyAndy
    Participant
    @andyjones
    Join Date: 2015
    Post Count: 7
    July 2, 2015 - 3:05 am

    Thanks for the question.
    I’m hoping to get some information to better understand another option. Plan A is to buy and hold for the cash flow.
    I’d rather understand more options to make better decisions rather than only follow one path because that is all I know.

Viewing 3 posts - 1 through 3 (of 3 total)

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