How to get vendors to agree leave 20% deposit in the deal

Viewing 4 posts - 1 through 4 (of 4 total)

jcso99
Participant
@jcso99
Join Date: 2005
Post Count: 95
February 8, 2012 - 4:28 am
Dear all,
My investment strategy is to target single/double storey houses (no townhouses) with 4 bedrooms, 2 bathrooms and double garage in and around Narre Warren, Victoria. Prices to be 375,000-450,000. Vendor must be willing to let me pay him/her 20% deposit within 2 years with preferable no interest charged during that time. However, I will pay out the 20% deposit after 2 years. I have spoken with at least 100 real estate agents with listings in the area and also did a maildrop 2 weeks ago with no feedback. Should I start looking to engage a bird-dog to source such deals for me? If so, where would I find such people given that I am working in Shanghai but I have a property manager who will manage the property for me (but she won't do any deal sourcing for me).
Appreciate any feedback. Thanks
Cheers
John
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 8, 2012 - 5:34 am
John and when you have found one vendor find a lender who will accept it in the current climate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Vivy
Member
@vivy
Join Date: 2006
Post Count: 9
February 22, 2012 - 4:21 am
Hi Richard,
“John and when you have found one vendor find a lender who will accept it in the current climate.”
I’m not quite sure what you mean by the above statement. Could you explain abit more please? Are you familiar with what the finance John is talking about? Is it referred to as vendor finance? Or is that what a rent-to-buy is? You think it cant work? I’ve heard others mention it and I’m interested in it also but have queried it with a couple of real estate agents and both have given negative responses.
Is there anyone out there that has ever made this work? Gotten a vendor to leave 20% equity in the house?
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 22, 2012 - 5:53 am
Vivy, FYI i am a Director of First Home Owners Group Pty Ltd (FHOG Pty Ltd) who are Qld's largest provider of Vendor Finance so YES i do know what John is talking about.
John is not referring to rent to buy or installment finance but simple 2nd mortgage carry back.
What i was asking John was whether he was aware of a lender who lend 80% of the purchase price / valuation where the vendor left 20% in the deal by way of 2nd mortgage.
To date i havent found a lender who will do it legally on an individual basis.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender