Has anyone every heard of a scheme like this? I dreamt it up last night after a bottle of red
House Purchase $400,000
Offer to vendor …. Pay full asking price on 20% Vendor finance payable in full in 2 years (with no interest)
Vendor Finance = $80,000
Loan from bank = $320,000
Closing costs = $15,000 approxCash needed = $15,000
If the vendor agrees, then they would hold a 2nd mortgage over the property. The $80,000 is payable in 2 years.
I know many vendors would say "no thanks"…. but some might be open to it if they are not getting any offers.
In 2 years it may be possible to refinance and pay the vendor through borrowed funds.
Brilliant? Or dreaming?
Hi
This is fairly common. I have a friend buying the commercial shop which they are renting by using this method – and they will be paying less than the rent they are paying now and will end up with the property.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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