Hi PaulypThe challenge with a traditional option is that the final purchaser usually finds out what you optioned the property for.  If you're looking for an easy sale, you need to be able to give your final purchaser a standard contract of sale, not an Assignment of Option form (as with a standard option).We use a system of legal paperwork that…[Read more]

Hi KhiemWe are still using both Lease/Options (Rent To Own) and Wraps (Installment Sales Contracts) in the current market.  We find that it's the particulars of each property transaction that steer us towards one of the many vendor finance strategies.  Not so much, the economice situation.  However starting off with just one (or two) strateg…[Read more]

Hi CharlieTo ensure that you know the difference between a Wrap and a Lease/Option, may I suggest you have a look at:https://www.propertyinvesting.com/strategies/wraps  andhttps://www.propertyinvesting.com/strategies/lease-optionsIf we go back to your question on Wraps (Instalment Sales Contracts) you can pretty much structure them in whatever…[Read more]

Hi John I believe you rang Karen this afternoon. I'll be back in Australia tomorrow (Tuesday) lunchtime. Give me a call on 0447 973 235 and we'll talk about that idea. Thanks. Cheers, Paul

Hi JNMThe challenge with a traditional option is that the final purchaser usually finds out what you optioned the property for.  If you're looking for an easy sale for $800K, you need to be able to give your final purchaser a standard contract of sale for $800K, not an Assignment of Option form (as with a standard option).We use a system of legal…[Read more]

Hi hitambakarThe one we use is 11 pages.Cheers,  Paul

Hi JNMTo complish what you want to achieve, you need to "control' the property (without actually buying it), along with the right to on sell at a higher price.As part of our Vendor Finance buisness, my wife and I do this regularly.  If you would like to talk, our phone number is bleow. Good luck.Cheers,  Paul

Hi There is no such thing, in legal terms, as a rent-to-own contract.  A rent to own/buy purchase is usually accomplished with:1.  A residential lease agreement and2.  An option to buy agreementThese two pieces of paperwork will definitely be more than 4 or 5 pages.  We operate in NSW but a lot of our Vendor Financier friends in Vic reccommend Lew…[Read more]

Hi GavKaren and I do a lot of vendor finance joint ventures but the first question we always ask is why?  The property you mention looks to have $70k of equity in it and I'm sure it would help all the experienced Vendor Financiers here, to know what your motivation is for selling the property, with or without vendor finance, i.e. with a wrap or a…[Read more]

Hi Gav HAs Tamar mentions above, one way to get a positive return in real estate, without relying on your income, is to consider the "Seller Financing" section of the residential real estate market.  Let's then look at the example of one of our Joint Venture partners.  He paid $17,526 to buy a $230,000 house which we have on sold for him usin…[Read more]

Hi SanjiieWe use positive cashflow properties to support our higher capital growth, negatively geared properties.  More specifically, we use Vendor Finance as our positive cashflow technique and utilise this cashflow to build wealth in our buy and holds.  Good luck.Cheers,  Paul

Hi IanOverton Insurance Brokers have had a Vendor Finance Policy for quite a number of years now.  It is underwritten by Australian Unity.  It fully declares in the policy that the property is being purchased via vendor finance, by your wrapees and shows all the relevent "interested parties".We normally deal with Stella Tolios at Overton, on 03 9…[Read more]

Hi BeckIs the unit currently tenanted?  The reason I ask is because a couple of months ago we succeeded with a long distance lease/option (rent to buy) sale in North Parramatta.  Drop me a PM if you'd like further details.  Good luck.Cheers,  Paul

Hi again AdoubleUAs you are thinking of becoming involved in vendor finance, you may be interested to learn a little of its history in Australia.  A great commentary on this subject can be found at:http://www.vendorfinancelawyer.com.au/page28.html  Then scroal down to "A Century of use for the sale of Real Estate in Australia".Good l…[Read more]

Hi AdoubleUWA has its very own rule about real estate Instalment Sales Contracts (often called Wraps), i.e. WA requires that you have a Credit Provides licence if you are going to provide Instalment Sales Contracts within the State.We are not WA based but our vendor finance friends in WA tell us that the licence is easy to get and not too much of…[Read more]

Hi BeckyThis link should help:http://www.mortgageworldaustralia.com.au/calculators/amortisation_calculator2.htmCheers,  Paul

Hi bruxismKaren, my wife and I started Wrapping properties in 2004 and we've been very happy with the results.We don't really know of a book dedicated to Vendor Finance in real estate, of which "Wrapping" is a part.  There are two Australian based manuals on wrapping.  They are:1.  The Wrap Kit by Steve (presently out of print) and2.  The Wrap Pac…[Read more]

Hi wezwazFrom my reading, it seems most of the richest people in the world, got that way by building the best teams around themselves.  They realised, early on, that they couldn't possibly be an expert in all the fiields they have to cover as entrepreneurs.  To be a successfull property investor, IMHO, you need to build a team around you that co…[Read more]

Hi ShaunA vendor finance friend of mine recommends:Glen Duker of Settle it LegalLevel 2, Imperial Plaza3282 Gold Coast HighwaySurfers Paradise QLD 4217Suite 17, Highpoint Business Centre3374 Pacific HighwaySpringwood QLD 4127Phone: 0411 075 555glennd@settleit.com.auCheers,  Paul

Hi MarkI've sent off a couple of emails to two experienced Victorian Vendor Financiers, to gauge their interest.  I'll PM you when I get a response.  Thanks.Cheers,  Paul