There are hundreds of vendor financed properties advertised on line.
Nowadays even larger players such as Meriton advertise vendor finance.
One way to find vendor financed stock is with a property search engine. Here is an example of a Mitula based search result.
On the weekend I will check out Dr. House in Melbourne. Dr House runs a 2 day free seminar in Melbourne. I hope to get some questions answered while I am there. After all I am giving up Fathers day.
I met an investor on the weekend who is cashflow positive and gets his Tenants from Community Housing orgs, such as Housing-Choices-Australia and the DHS . I don't know what he charges, but I presume undesirable tenants means premium pricing at above market rates. More ethical would be compassionate rates ? But not to rent to the less fortunate is certainly not more ethical than to rent to them at premium rates. You may have additional complexities, such as legal issues, evictions, maybe you won't find a real estate agent to be your rental manager. And if you register as a boarding house you may have to fulfill heaps of requirements, such as fire, handicapped etc. In short - its not my cup of tea.
Dymphna Boholt was in Melbourne again. This time she did two dates. in the same town. We went to the second event at Crown Casiono, which attracted an estimated 300 to 400 attendees. Grand total close to 1000 in Mel alone. All the other cities yet to come. I find Dymphna very inspiring and she captivates her audience. Again there where about 30 to 40 visitors that paid for VIP tickets at a cost of about $200 a day and probably 2/3 of the crowd where repeat visitors. The message was very clear.
Find your WHY
We bring you the HOW - NO EXCUSES
The only problem is the upfront investment of 6x $995 or 1x 4995
Her own story was very moving and so where her client stories. Mainly because for me the WHY was really resonating. She had multiple stories of people that got rich enough to be empowered to bless the poor. On the other hand the HOW was very motivating as well. Dymphna is passionate about what she does, there is no doubt. She is a woman with a mission and high integrity. She does not sell anything but knowledge. No compromise on selling property and taking cuts. She is however a very skilled marketer and very clever negotiator. And she knows tax strategies and asset protection better than any other property guru I know. The hard part is actually to pick the right VALUE ADD strategy that suits me and to get the first deal right. If that goes wrong many give up or run out of steam to do the next deal.
We met at Crown Casino and Dymphna was passionate about being anti gambling wrt the real estate game. She even thought that passive investing (waiting for the market alone to bring gains) was a form of gambling and strongly emphasized manufactured growth and value add strategies.
What did I learn that was new ? She started without much money, except for an income, but one that the banks may not have honored. And she started with Vendor finance. Vendor finance does not have to have a bad feel about it, such as predatory investment where you target a distressed divorcee or bereaved, sick or unfortunate person and give them the worst offer to maximize your gain. Squeezing a developer for a good deal sits much better for me and that is how she started. Funny story. Dymphna said her son suffers from a desease called Excusis Maximus. That stuck to my brain as well. Sounds like me.
Another good thing of Dymphna's seminar was that she told us that in the first 6 months of her career as a rocket investor, she did actually nothing than gather knowledge and deal with he had space to dare to venture out (confidence) to excel in buying time at a great cost after a very messy divorce. A former corporate high flyer she was a single Mum with one child. and pregnant. So she started an accounting practice form home so be more with her kids and then build her portfolio. No magic wand, more like blood, sweat and tears. So what was the secret of success ? No excuses, passion and endurance. A pay the price and whatever it takes attitude.
Here is a funny quote: Dymphna says "I won't sell you property and if I did then trust me you would not want to buy it from me"
The take away for me was no excuses and start getting market ready on my own and to defer spending money until I find somebody to team up with.
In August / September there will be a lot of seminars in Melbourne. Dymphna is back in town, Dr House a student of Rick Otton, A Property Forum and more.
The easiest way to stay up to date with our posts is to like Melbourne Property Investors on facebook.
SMSF Property Investment in Australia
Was it right for me ?
Update 24 June 2017 that is 5 years laters
Looking back 5 years later after many lessons learned in the school of hard knocks, the answer would have been a firm yes if I had been more wise and courageous and stayed away from syndicated property development. In hindsight this has proofed far to risky. As I understand it SMSF's do not allow direct entrepreneural activity or limit it severely and syndicated property development can be more risky than investments in shares due to a lack of stop loss safety provisions.
I would have been better off to buy an investment property outside of an SMSF and pay my taxes or buy it within, rent it out and then sell it (even if it is to myself).
The problem with SMSF property ownership is that we can't hold title and/or conduct development activities or renovations and that.
If you are looking for general info about administrative requirements, regulations and limitations for SMSF investments and whether or not a low fee SMSF is the right vehicle for you to hold a property, then esuperfund is good starting point. It provides plenty of free information. Self managed super funds or SMSF's are characterized by complex compliance requirements and much higher management costs than normal Super funds, but provide a means to hold title in a property. Owning property is a safe way to look after old age, as the money is visible in bricks and mortar right in front of your eyes. And that it makes it much safer.
PS This is just my opinion. it's for free cause it's not financial advise. I'm neither professionally qualified, nor licensed and I don't provide any financial services. I just gave it a crack. I've lost money, lodged with ASIC (failed), lodged with FOS (success) . If this sparks interest I'll post more later.
What could possibly go wrong ?
You may have seen the signs or ads "We buy houses" or "We buy houses fast".
You may have seen ads by Rick Otton or heard of Dr Gordun Ku, Dr House or the "Siacci System" and gone to a seminar. Now what ?
A good start is always at Wiki http://en.wikipedia.org/wiki/Vendor_finance
followed by a Google search
and then take a look at the Gurus and decide if it is for you and if you want to buy a Mercedes or a Getz. Picking a student of a Guru may be all you need ever or just initially. Maybe David Siacci of Melbourne, Victoria, Australia and his program is the right starting point for you. Learn from active investors, check out www.siaccimentoring.com or facebook 'Siacci Julie-David' and Vendor Finance Association, which meets quarterly, first meeting is free. www.vendorfinance.asn.au
When you go to a free property millionaires seminar you are sold a dream and a hope. The dream is to make heaps of money. More than now and in less time. And the hope is anybody can do it and that includes you. So sign up and off you go. There is no screening of whether you are suitable for what you are about to embark on or if the program offered is right for you and the time is right. The pressure is on "sign up now or miss out on the opportunity". Can you afford the missed opportunity costs ? That anybody hungry for success, of average intelligence, young enough and willing to give whatever it takes will succeed in the property millionaires club can be taken as proven by the many average people from all walks of life. And this criteria will probably filter out 95 % of the free seminar attendees (its the principle of normal distribution acc to Gauss) and that is exactly why not everybody will succeed and become a millionaire.
But if you are happy with your own definition of success and have a long enough investment period ahead of you and are part of the 95 % then you will succeed in your own right. You buy a cheaper course in the end, but even if you don't you will win and make good the $5000 expenses many fold.
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