No Money Down Strategies?

Hi kong

The technique you mention is one of the 3 most popular vendor finance techniques in Australia,  Vendor financiers generally call it Deposit Finance.  It was easy to put together before the GFC and and then almost impossible to arrange post GFC.

However over the last 12 months there are more and more traditional lenders who are prepared to accept 'non genuine savings' as part or all of the deposit.  We now use two of these lenders to regularly put together Deposit Finance transactions.

Cheers, Paul

I have been around and around in the rent rut for the past nine years. I have tried to save deposits only to to be infored that we have to move out and find somewhere else, because the investors of the property want to sell up. We have shifted 8 times in 7 years, all to owners wanting to cash in their properties and we're left out in the cold. Im sick of it.

If we can pay $300Per week in rent then I see no reason why we can't pay off a home of our own. We cannot keep shifting, for the rest of our days and I do not intend to. 

I find Im in locked into a no win system of greedy landlords, who prey on the vulnerability of older women in our society.

 I am now 57 years old, I need a home so I can settle down and enjoy life without the stress of having to keep moving on. I see that "Vendor finance" could be a way out as I do not qualify for a bank loan. 

I do not have bad credit, nor am I in debt, Im an excellent payer, and always on time. I don't see a problem but obviously the banks do…

There are other "no money down" initiatives for active investors opposed to passive.

I lend money in Melbourne to real estate investors who fix and flip or fix and hold residential real estate properties.  At times I can lend 100% of costs to buy the property and renovate. I am able to do this by taking a view on the after repair value of the property and when the property + renovation costs is purchased at a discount to after repair value of at least 35% (ie 65% LVR ).  Banks will only lend on an "as is" basis which means you usually can leverage to the lower of 1) purchase + building costs; or 2 ) on completion value. Each deal is subject to approval. 

No money down does not mean "I have no money at all" and "I don't have experience". We look heavily at the borrower, their ability and track record and also a buffer to absorb financial shocks if things go wrong.  If the borrower is deficient in these senses, we recommend them teaming up with people who have the missing components. We are less concerned with financial statements and are more concerned with the security and the potential of the borrower.

I had a developer just the other day offering nras stock at 20% vendor 80% bank. There is no limit of vendors out there.