All Topics / Creative Investing / Banks and Vendor Financing?

Viewing 11 posts - 1 through 11 (of 11 total)
  • Profile photo of batts71batts71
    Participant
    @batts71
    Join Date: 2004
    Post Count: 57

    Hey guys,

    Just checking to see if many (any?) lenders out there are happy to finance up to 80% if the other 20% is from Vendor financing.

    I’ve heard of the 90/10 lend, where the lender isn’t concerned where the 10% “deposit” came from, but I wasn’t sure if this included the vendor leaving 10-20% in the property.

    Cheers,

    Batts

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    Hi batts71
    some banks (bank west don’t like it, but others do )
    Depending on the volume and if new product different banks have different criteria.
    Talk to you local broker and he will be able to give you a list he works with.
    It is not uncommon and is becoming the norm in unit sales.

    here to help

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I’ve spoken to a few banks about this, Liberty, Adelaide and Bankwest have said they would do it (in theory anyway, haven’t actually tried). It may depend if the second mortgage will be registered.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    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 batts71batts71
    Participant
    @batts71
    Join Date: 2004
    Post Count: 57

    Thanks Guys,

    I’ve heard that Rick Otton is promoting this technique in both buying and selling property. I had assumed that it must be becoming a more “common” practise now.

    Do any brokers there have any direct experience with lenders accepting the 20% deposits as vendor financing?

    Cheers,

    Batts

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Yes

    Cheers Richard

    Ph: (07) 3720 1888
    [email protected]
    http://www.yourstatefinance.com

    IP funding and US property finance
    our speciality

    Richard Taylor | Australia's leading private lender

    Profile photo of batts71batts71
    Participant
    @batts71
    Join Date: 2004
    Post Count: 57

    Thanks Richard,

    It’s reassuring to hear from someone in the business that it CAN be done.

    I’ve heard a lot of people talk about it in theory, but unsure if it was actually achievable.

    Thank mate.

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi batts71
    In new developments here in sydney is already the norm for most I know, and also put call options as a pre sale backed by vendor finance is now becoming popular.
    bit new to the market so only a couple of lenders like it.

    here to help

    Profile photo of brahmsbrahms
    Participant
    @brahms
    Join Date: 2004
    Post Count: 485

    put and call option translating to a vendor finance of 20%

    wow. sounds like its an incredibly obtuse market.

    cheers

    brahms
    Purveyor of Fine Finances
    aka Mortgage Broker Brisbane

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    HI brahms
    Not sure about obtuse but inventive yes.
    The lenders are already excepting put call options as pre sales (up to 30% of the development)and by attaching vendor finance from the start the property from all intense and purposes is funded prior to completion and in return the site has no pre sale requirement (as 30% in the normal pre sale quantity that is required)
    The funding is a smoother process and lending approved quicker.

    here to help

    Profile photo of kenkoh2000kenkoh2000
    Member
    @kenkoh2000
    Join Date: 2003
    Post Count: 103
    Originally posted by Qlds007:

    Yes

    Cheers Richard

    Ph: (07) 3720 1888
    [email protected]
    http://www.yourstatefinance.com

    IP funding and US property finance
    our speciality

    ***********************************88
    Dear Richard,

    1. Which and where are the usual lending instituations which readily accepts a 20% deposit through vendor finance?

    2. Any different in their lending terms and condition s=imposed subsequently?

    3. Looking for ward to learning from you soon.

    4. Thank you.

    regards,
    Kenneth KOH

    Profile photo of rickottonrickotton
    Participant
    @rickotton
    Join Date: 2002
    Post Count: 24

    “Tea bagging” is becoming quite popular at the moment and really is one of the most popular types of vendor finance.This is where a buyer finances 90-95% of his property purchase and you supply the remaining 5-10% either by gifting or cash in.You carry back from settlement 2nd mortgage or first on other unemcumbered property
    for 100% to 300% of loaned value with future interest capitalized.Discounts applied for early payout.No loan liability, no debt service and no applications http://www.rickotton.com

Viewing 11 posts - 1 through 11 (of 11 total)

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