Reload original page
 |
|
|
Use Vendor Finance To Buy An Investment Property?1 2purpleairplane [6 Posts]  I've been reading in one of Steve's books about vendor finance. I'm very curious about it because as someone who is struggling to get a deposit together, but keen to get into an investment property, I'm wondering if vendor finance is an option for an investment property that we will not be living in? Does that matter? PaulDobson [948 Posts] 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 Paul Dobson - Vendor Financier - http://www.negative2positive.com.au  Terryw [12324 Posts]  It may be good in theory but you will find it extremely difficult to find a lender willing to lend to you when you are borrowing money from the vendor to complete the sale. Regards Terryw PaulDobson [948 Posts] G'day Terry Yep that's how it's generally been since the GFC and the advent of the NCCP. However recently we have been getting quite a number of Deposit Finance transactions over the line through the available 'non genuine savings' products that have come back into the market. As as a sign of the times Deposit Finance may not even be necessary these days. Today I've had 3 sellers inquiring about selling their properties with VF and they're all willing to enter into 30 year Instalment Contracts. Sure 3 in one day is unusual but I'd say we're averaging 4 of these inquiries a week at the moment. And refinancing out of IC's has become so much more simple than it was before, with the help of one to the big second tier lenders. Cheers, Paul Paul Dobson - Vendor Financier - http://www.negative2positive.com.au PaulDobson [948 Posts] G'day Terry PM'd you. Cheers, Paul Paul Dobson - Vendor Financier - http://www.negative2positive.com.au Tinsel777 [22 Posts]  This is a subject that I have been thinking about for some time. I was sent an e-mail about the Siacci System. PaulDobson [948 Posts] Hi Tinsel Disclosure first ;-) Rob, Karen & I started vendor finance with Dave & Julie back in 2003 and we're personal friends, so I'll try not to be too biased ;-) I believe it is important to build a good foundation to your vendor finance knowledge and there are numerous educators to choose from. Some that spring to mind are: It is worthwhile researching all these educators and choosing one that suits your style. We know lots of people who have attended the seminars/courses supplied by the above educators and there seems to be a common result for all seminar attendees. The urban myth about results from seminars says that 80% of attendees do absolutely nothing once the seminar is finished and out of the 20% that actually take action, only 20% of them are left after one year. It may be an urban myth but our experience shows this to be pretty spot on. I believe all the above educators will give you the information you need to get started but it's then up to your ability to 'stick' to the task. Our experience shows that taking a lot of continuing action and not giving up so you can attend the next great 'make a million dollars easily seminar', is the only way to be successful in any business enterprise. In short, yes, there are many people doing it successfully. Good luck with you research. Cheers, Paul Paul Dobson - Vendor Financier - http://www.negative2positive.com.au Tinsel777 [22 Posts] 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. 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. 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> Tinsel777 [22 Posts] 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. Terryw [12324 Posts] Hi Tinsell I am not saying you definitely need a licence but look into the laws of the State you will want to act in first. You may need a real estate licence or a buyer's agent licence. No sure how the 'free people' bit fits in either. The laws are there to, allegedly protect the people and maintain standards. You could imagine how it would be if anyone could act as a real estate agent without being licenced (they are dodgy enough as it is). And why would it be unconstitutional? Regards Terryw Tinsel777 [22 Posts] 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. Terryw [12324 Posts] I am a lawyer so am intereste in your views. On what basis can banks charging variable interest rates illegal? If this is the case why hasn't someone mounted a challenge? I recall something in the media about it a few years ago now but never looked into it. Regards Terryw Tinsel777 [22 Posts] 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). 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. 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. Terryw [12324 Posts] That is the most ridiculous thing I have read in the past hour! Legislation takes precedent over common law and the HIgh Court is the only court that has jurisdiction to hear constitutional matters. Who would be making the death threats? What recent murders could be linked to keeping the status quo? Do you think the reservice bank has a hit squad or that the CBA employs assassins to take out those who refuse to fix their loans? of course not, they would be contractors so that they do not have to pay the superannuation guarantee surcharge! Next you will be telling us the 9/11 attacks were organised by Israel and the CIA? Or that Pharlap is still alive and living in Tibet under a false name. Regards Terryw Tinsel777 [22 Posts] 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. Terryw [12324 Posts] Sorry to have offended you but it just doesn't make sense. All lawyers study constitutional law as a compulsory subject so I have studied it in depth but it is not an area I am interested in If there were state laws contradicting the constitution then they would be invalid and they would quickly be challenged in the high court. Leaving the comments regarding the murders aside for a min Specifically which section of the constitution would prevent variable interest rates? Regards Terryw Terryw [12324 Posts] Also please give an example of common law over ruling legislation Regards Terryw Tinsel777 [22 Posts] No, you didn't offend me Terry. That is ok. I understand your scepticism. The reason why these laws are not challenged in the High Court is because most people are unaware that they do contradict our constitution & yes you are right, they do become invalid. However what people need to realise is ignorance is not bliss. In regards to the part of the constitution regarding varible interest rates, I would have to look it up the same as you. I read it/heard it during the many hours I have put into researching this but I am a long way off of becoming an expert on the subject. There is a strong constitutional movement here in Australia as well as in the UK, Canada & the USA. People in the Australian movement have been researching & putting this into practise for many number of years now. They would be the ones to talk to specifically about this. I did however come across these recently. Remember how in a previous post I stated that local governments are unable to make laws, by-laws etc? Here are a couple of 'template' letters that can be used in regards to local councils trying to enforce their laws. They have already been used very successfully on a number of occasions by individuals. Who among us would love not to have to to pay council rates? Considering this is after all a property investing site & council rates can add up to a lot. Here is a link to a letter from the former federal Attorney General confirming what I have just said about the non recognition of local councils. http://www.larryhannigan.com/Attorney_General_Referendum_Letter.pdf The gentleman who owns & runs this website, as well as many others, has been fighting constitutional battles for many years so he would be a great person to ask about variable interest I'm sure. If I come across the information again, I will certainly forward it onto you. 1 2 |
User loginInvesting Resources
Active forum topicsredraw v/s split loan Author: garg Fly and Buy Tours to the USA Looking for Opinions ? Author: Alex SC Activity FeedRecent blog postsSecure the right loan for your investment Author: Property Investing News Home lending approvals increase slightly Author: Property Investing News Join Our Facebook CommunityFeatured Investing Resource
Register Your Copy
Who's onlineThere are currently 4 users and 89 guests online. Online usersSocial Media
Today's TipYour deal's in trouble if the difference between making and losing money is <more> |
|
I do realise that any business takes work, especially to get started.
