I currently have a property under vendor finance and am looking for someone to take over the contract. The reason I want to move it on is I have had the client now for almost 6 years and I am in other businesses and just having 1 property there under this arrangement is a bit of a hassle for me now. It would be an ideal opportunity for the 1st timer getting involved in one of these transactions or an experienced wrapper wanting to add to there portfolio.
Details of the deal as follows:
Sale of House on Vendor Terms Price: $219,500
Sale Date: 08/07/2003
Loan term: 30 Years
Wrapee int rate: 7.57%
Current Loan Balance: $198,000
Weekly repayments: $345Take out of my Loan would be approx $190,000 over 24 year P&I loan @ 5% = $262 per week repayments
Cashflowing @ $83 per week.Property is managed via Loan Alert 3 which will also come with the property.
My name is David and I can be contacted on 0413 754685
Are you sure it is legal to onsell a wrap deal? My understanding is that you aren’t even allowed to refinance the mortgage on them.
Have you asked your clients if they are in a position to buy out the contract themselves? Surely it isnt hard convincing your bank that they could afford 5% interest payments, when they are currently paying 7.5%, especially if there has been capital growth, which is likely since 2003.
Certainly it legal to both onsell a wrap deal and refinance (subject to the wrappees caveat) however i agree why would the current wrappees not look to buy you out if they have been there for 6 years.
I assume the property has increased i value over the term of ownership.
Also i assume you would be selling a Company rather than the property as any investor is not going to want to pay stamp duty on the Transfer again.
Richard Taylor | Australia's leading private lender
Your current 7.57% Wrapee int rate would be good for the banks. They can easily afford 5% interest payments at your new deal. But though you are shifting into a new thing be careful. Best of luck.
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