Hi All,
Most of the reading I do is about creative finance strategies in the USA.
One way in which US investors vendor finance their properties is that they take out a note with a certain % interest and then either keep that note as an investment or cash out by selling it to a note buyer.Ie, they create a mortgage in their property at sale and then sell the mortgage. There are numerous companies in the USA that buy mortgages.
Anyone tried anything like this here?
I have searched but to no avail [glum], anyone know of any note buyers in Australia?
what limitations are we faced with when vendor financing in Australia?
We buy properties in Adelaide. No Agent Fees.
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phone 0412 437 582Is this like a second mortgage?
Terryw
Discover Home Loans
Parramatta
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sounds like it’s very similar to a second mortgage, except it can be secured, or unsecured and security can be taken over anything, not just the property in question!
and it can be sold on its own, without the property.
a note is defined as a “promise to repay debt”
very interesting reading! Those yankee investors seem to be very innovative in their approaches, just wondering if anyone has done anything like this in Australia, or it if IS doable?????
We buy properties in Adelaide. No Agent Fees.
[email protected]
phone 0412 437 582some investors call them promissory notes!
We buy properties in Adelaide. No Agent Fees.
[email protected]
phone 0412 437 582Maybe look at Rick Ottons site or contact him?
QLD’s 007 may be able to assist
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI believe that there is more use of Promissory Notes under the corporate structure as a way to raise fund without the regulations imposed by ASIC on other types of fund raising. It started to become popular in 2003 and companies like Westpoint used Promissory Notes for building residential appartments. The regulators have since steped in where possible to deem the some use of promissory notes such as that used by the likes of Westpoint, as a Managed Investment Scheme, and require prescribed disclosures statements be issued.
Like Mezzanine financing it is a high risk investment.
Mal
Getting out of your comfort zone, can help you become comfortable
How about their use as a vendor financing instrument when properties are purchased?
We buy properties in Adelaide. No Agent Fees.
[email protected]
phone 0412 437 582There is really no real ‘note’ market here in Australia.
But really all a note is, is a binding contract. I guess the main difference is the fact is that in the US it is seen as an instrument more (and so can be bought and sold).
hellman
thanks to all,
I found a great definition on the ANZ website if anyone is interestedhttp://www.anz.com/edna/dictionary.asp?action=content&content=promissory_note
We buy properties in Adelaide. No Agent Fees.
[email protected]
INCREASE THE CASH FLOW FROM YOUR INVESTMENT PROPERTIES!
http://www.renttoownau.com/ http://www.vendorfinanceau.com/and this may be what shwing was referring to:
http://www.crikey.com.au/business/2003/02/10-investment.print.html
thanks mate [biggrin]
We buy properties in Adelaide. No Agent Fees.
[email protected]
INCREASE THE CASH FLOW FROM YOUR INVESTMENT PROPERTIES!
http://www.renttoownau.com/ http://www.vendorfinanceau.com/just found this too:
Happy Reading [biggrin]
We buy properties in Adelaide. No Agent Fees.
[email protected]
INCREASE THE CASH FLOW FROM YOUR INVESTMENT PROPERTIES!
http://www.renttoownau.com/ http://www.vendorfinanceau.com/hi Dr.X
from what you are discribing it is a debenture note here
and is used in different business to rise funds for a particular project
the note carries with it a interest attached for tax purposes and is an agreement to buy back at a future time for a fixed price to be negotiated at the start and the interest rate is agreed by all concerned
don’t think it would work for real estate as they are high risk securities and are for short term money with relatively high rates of interest they are usually not cover but any prospectus or asic as they are class as one on one dealings and are gain by issuing your intention to purchase these to companines that put these deals together usually merchant banking, seed capitalist and venture capitalists, and a like they are very common in the capital raising market.
and yes they are traded depending what the deal was raised for they are usually very speculative.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
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