All Topics / Creative Investing / Using vendor finance homes to build a property portfolio

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  • Profile photo of Hamilton21Hamilton21
    Member
    @hamilton21
    Join Date: 2006
    Post Count: 2

    Hello every one,
                          I would like any ones ideas on building up a res property portfolio using vendor finance homes / deals!!!
    Example; Buy one property and rent it out using vendor finance to purchase it, once this one is running along smoothly and have enough money in the bank to  cover any cost for least six months! Then move on to the next property………

    mattnz
    Participant
    @mattnz
    Join Date: 2007
    Post Count: 574

    You should read some of Steve McKnights books.

    Profile photo of kevroy99kevroy99
    Member
    @kevroy99
    Join Date: 2009
    Post Count: 3

     Hi all need some advice
    I have found a motel nsw west 46% yeild  L/hold $300k nets $139 and vendor finance $150 k/ 3 yrs +1%on current rates freehold worth 1.5 mil 21 units broker suggests refinance on our private home equity $160k with bank….Broker wants us to pay $1100 upfront to apply for finance says banks dont pay commissions any more does this sound right and does all this sounds too good to true .

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    kevroy99 wrote:
     Hi all need some advice
    I have found a motel nsw west 46% yeild  L/hold $300k nets $139 and vendor finance $150 k/ 3 yrs +1%on current rates freehold worth 1.5 mil 21 units broker suggests refinance on our private home equity $160k with bank….Broker wants us to pay $1100 upfront to apply for finance says banks dont pay commissions any more does this sound right and does all this sounds too good to true .

    Sorry, I am finding it difficult to understand what you wrote above. Would you mind rephrasing it? Banks still pay commissions, but not as high as before – but not all lenders do and not all deals, especially commercial.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Hamilton21Hamilton21
    Member
    @hamilton21
    Join Date: 2006
    Post Count: 2
    mattnz wrote:
    You should read some of Steve McKnights books.

    Thanks for your reply Matt and what book would you recommend to start with as there is a few books around!

    Sincerely
    Paul

    Profile photo of kevroy99kevroy99
    Member
    @kevroy99
    Join Date: 2009
    Post Count: 3

    Sorry didnt explain myself properly my main concearn was my  Finance Broker wants me to pay him the $1100 upfront before he talks to the bank about finance is this normal?As you can guess this is the first time i have done this sort of thing thanks heaps for replying..

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    kevroy99 wrote:
    Sorry didnt explain myself properly my main concearn was my  Finance Broker wants me to pay him the $1100 upfront before he talks to the bank about finance is this normal?As you can guess this is the first time i have done this sort of thing thanks heaps for replying..

    Yes it is common in many cases, especially commercial ones.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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