Vendor finance is legit and can be a better option than a bank loan in some circumstances. I recommend it to fill a need between people that can be trusted. I have offered it to my son and recommended it to a friend.
There are pitfalls - see Jenman's article. It is important that it is a win /win. If third party is involved then it has to be made sure that the margin remains reasonable and due diligence is applied. Qualifying is important in making sure there is no overcommitment and ugly default. It is important to control cash flow. No go betweens ! See Jenman's article.
Rick Otton's book is valuable, but please be wary of greed. Rick Otton obviously makes serious money from selling the dream of big money made easy.
What is Vendor Finance VF ?
Find a lawyer or read more to find out if it is for you . .
http://www.vendorfinancelawyer.com.au/
http://somersoft.com/forums/showthread.php?t=82815
Cordato Partners prepares the legal paperwork for many vendor finance strategies.
There are pitfalls - see Jenman's article. It is important that it is a win /win. If third party is involved then it has to be made sure that the margin remains reasonable and due diligence is applied. Qualifying is important in making sure there is no overcommitment and ugly default. It is important to control cash flow. No go betweens ! See Jenman's article.
Rick Otton's book is valuable, but please be wary of greed. Rick Otton obviously makes serious money from selling the dream of big money made easy.
What is Vendor Finance VF ?
- Instalment Sales (Instalment Finance, Instalment Contracts, Terms Contracts) where the seller is the banker for the buyer to buy the home;
- Rent to Own (Rent 2 Own, Rent/Purchase, Rent to Buy, Rent-Buy, or Rent now Buy later, Lease Options) where the seller rents to a buyer for a while, and then the buyer can either buy the home at a pre-agreed price or walk away;
- Deposit Finance (Carry-Back Finance, First or Second Vendor Mortgages, Seller Loans) where the seller finances the shortfall between the buyer’s loan and the price payable to buy the home;
- Handyman Special (U buy U fix, sweat equity) where the buyer agrees to renovate and the seller agrees to credit an agreed amount for the renovation towards the deposit in lieu of a cash deposit;
- Sandwich Leases (back-to-back lease options) which are set up by a ‘transaction engineer’ who secures the property under an option and takes a lease from a seller, then finds a buyer who takes a Rent to Own option and a sub-lease from him, with the idea being that after a time, the buyer can either buy or walk away;
- Joint Ventures where a ‘transaction engineer’ sells a property with an owner, or buys then sells a property with an investor, using an Instalment Sale, a Rent to Own, or a Deposit Finance vendor finance strategy.
Find a lawyer or read more to find out if it is for you . .
http://www.vendorfinancelawyer.com.au/
http://somersoft.com/forums/showthread.php?t=82815
Cordato Partners prepares the legal paperwork for many vendor finance strategies.
RSS Feed
