JeffBMember@jeffbJoin Date: 2004Post Count: 11
I have a property I am looking at, it is a private sale and the vendor wants about 10 to 15k to much according to me. If I can save money in other ways I could make the deal work out for me.
What I would like to do is get the vendor to sell it to me on vendor finance, I will pay little or no interest and have a clause that I have to pay out the remainder after 5 years.
If I do this I do not get title until 5 years, can I proceed and wrap this property now though? Any better ideas?
This works good for me because the bank doesn’t know about it, and I am running out of equity to finance more deals.
JeffPaul DobsonParticipant@pauldobsonJoin Date: 2003Post Count: 1,196
If you purchase the property via an installment contract you can’t on sell the property via an Installment contract because you don’t own the property, i.e. your name is not on the title.
With the co-operation of your vendor, you may get him/her to agree for you to lease the property. You could then possibly use a lease option but, again you may not be able to give an option on a property that you don’t own. Check with your solicitor.
Alternatively you could get the vendor to give you a second mortgage on the property for 20% of the purchase price. You then get an 80% lend from your bank and your existing equity is left untouched (except for costs). You then have the title in your name and can wrap it or L/O it.
I hope this helps.
Cheers, PaulJeffBMember@jeffbJoin Date: 2004Post Count: 11
I like the idea of them taking a second mortgage for the 20%.
Can you tell me on here how I go about this, or where do I get info on how to set it up?
Is it something my solicitor would know?