All Topics / Help Needed! / vendor finance help needed

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of ritchiemathesonritchiematheson
    Participant
    @ritchiematheson
    Join Date: 2011
    Post Count: 15
    November 9, 2013 - 1:03 pm

    hi everyone

    I have a property in Calbooture (QLD) I wish to get off my portfolio.

    I am looking at offering it to the tenants (which I have not approached as yet)

    They have been in the property several years, and have made it their home. (a good selling point)

    However it is heavily negatively geared, and had very little capital growth (yes victim of fatalistic investing as Steve would say)

    so to maximise my return I am looking at vendor finance.

    I do not wish to pursue this as an investment strategy. and not looking at getting involved in the nitty gritty

    I am looking to employ someone to help set up the transaction, including legal documents and advice on approaching the tenants;

    anyone who can point me the right direction of an experienced and qualified person would be appreciated

    Thanks

    Ritchie

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 9, 2013 - 9:48 pm

    Are you licensed to offer such form of credit terms ?

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of ritchiemathesonritchiematheson
    Participant
    @ritchiematheson
    Join Date: 2011
    Post Count: 15
    November 10, 2013 - 12:35 am

    I have the following skill and knowledge, and license in regards to vendor finance

    1. little or

    2. very little

    3. most would say none.

    hence I am looking at employing an "experienced and qualified person" to facilitate the transaction 

    I am examining if this is a viable exit strategy for this property.

    This appears to be a way to maximise my return on a bad investment choice.

    Cheers

    Ritchie

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 10, 2013 - 6:23 am

    Employing someone won't get you out of being licensed as you are the one offering the credit terms.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of ritchiemathesonritchiematheson
    Participant
    @ritchiematheson
    Join Date: 2011
    Post Count: 15
    November 10, 2013 - 6:34 am

    Thanks Richard,

    Is this likely to be a major road block/barrier? or is it a registration and approval process?

    Can you point me in direction of where I can find information on criteria I need to meet to become licensed?

    Cheers

    Ritchie

    Profile photo of ChrisA1ChrisA1
    Participant
    @chrisa1
    Join Date: 2011
    Post Count: 172
    November 10, 2013 - 6:48 am

    Hi Richard

    Since Ritchie isn't looking to make VF his main business, but rather looking to use it to sell one underperforming property, would he need a credit licence himself, or could the JV partner hold the credit licence??

    ChrisA1

    Persistence is 'to keep on keeping on, no matter how hard the going may be'

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 10, 2013 - 7:18 am

    https://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Credit%20licensing

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of ChrisA1ChrisA1
    Participant
    @chrisa1
    Join Date: 2011
    Post Count: 172
    November 10, 2013 - 7:26 am

    Thanks Richard,

    Clarifies or confuses the situation as I read that if you did under 5(?) transactions a year, then it wasn't regarded a business and therefore you didn't need to hold a credit licence as such. Possibly the rules have tightened. 

    ChrisA1

    Persistence is 'to keep on keeping on, no matter how hard the going may be'

Viewing 8 posts - 1 through 8 (of 8 total)

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