FREE Vendor Finance Calculator

[Tim Hart]

The Vendor Finance Calculator is now online!

The Vendor Finance Calculator (VFC) is a web based programme that does all the number crunching for all your vendor finance real estate deals, qualifies your buyers for you, and gives you a complete summary of your business. This programme was originally a small, simple excel spreadsheet created by a Vendor Finance Investor to help him run his Vendor Finance business more efficiently. The Calculator has since then evolved and become much more powerful while remaining highly accurate.

The Vendor Finance Calculator is not yet 100% complete and for the final stage of its development I require your help. I need people to help test the website for me and give me feedback. I would like to invite you to register FREE of charge to use the Vendor Finance Calculator as part of a group of testers. All I ask is that you provide me feedback.

My vision for the Vendor Finance Calculator is for it to be used by every vendor finance investor in Australia. The only way it is going to achieve that is if it adds significant value to your business, saves you time and is easy to use. So please tell me how I can make this the best vendor finance resource in Australia.

Please go to http://www.vendorfinancecalculator.com and register for FREE access to the site. Then please test the calculator with real deals and real figures and let me know your comments.

Tim Hart

P.S. Thank you for your help. I hope we can make the Vendor Finance Calculator a valuable tool for your business.

 

[grossreal]

hi Tim Hart
might come as a funny question but why would you want a vendor finance programme.
vendor finance in it raw form is finance supplied by the vendor and if I am giving you finance why would I need this programme to tell me how much I am making.
and if its aimed at the person buying vendor finance then why ould they want to know how much the vendor is making.
it seem funny that some one would produce a product that I don't see a market for but maybe its just me.
vendor finance is an agrrement between a supplier and a purchaser and always has been and I am not sure why you would need to join a web site to be told that.
I can tell you that for free here and you don't need to log in a special code.
maybe if it was wraps programme then I would understand.
maybe I am missing something here
as a supplier of vendor finance I don't see where this programme can be used but some one here maybe able to tell me.

 

[Tim Hart]

Hello Gross Realisation

The Vendor Finance Calculator is for vendor finance investors. By that I mean investors who buy and sell real estate using Instalment Contracts (wraps), lease options, and second mortgages. I did not want to put too much information in my post, but rather let people know about it and if they are interested they can go to the website for more details. I will expand a little more on my original post.

There is definately a market for this product and I have already had incredible good feedback and a lot of people sign up to help test the programme. The Vendor Finance Calculator was originally just something I created to help me run my own vendor finance business. If there was no market for it out there and I'm the only one who uses it then I'm happy with that as it saves me time eveyday! However, after showing it to a few other investors it quickly came apparent that everyone else wanted it as well.

I will give you example of what the Vendor Finance Calculator can do.

Lets say you bought a house for $200,000 in Victoria where the vendor paid your stamp duty for you, you got a 95% interest only loan from the bank with a honeymoon rate of 6.5% for 12 months which goes to 7.5% after that.

You then sell that property via an Instalment Contract (wrap) for $240,000 and your purchaser has a $5,000 cash deposit and they can get the First Home Owners Grant. You charge them 8.5% interest only for the first 12 months, then 9.5% Principal and Interest after that.

You then get a Real Estate agent to manage it for you at 100 per month.

You need to know how much are have to invest.
Your Return on Investment
Your Backend Profit (paper profit)
Weekly cashflow from year to year.
Your mortgage payments before and after honeymoon rates
Your purchasers mortgage payments before and after honeymoon rates
Land titles fee
Stamp Duty
Mortgage Insurance

Now if your good with maths then you could probably work all this out but it would take about 30 minutes to get an accurate answer. The Vendor Finance Calculator does all this in seconds. It takes longer to put all the information in than it does to work it out.

Once you have done vendor finance investing for some time you start to know what the numbers are that you need to achieve the profit you want so you don't have to do the calculation everytime to make a purchase, but if the vendor wants $X price for his house cash or $X+Y price for his house with a 20% second mortgage at 10% interest I want to know the difference to me in exact dollars terms so I can make a business decision about which option to take. Another example would be if I have two buyers for the house. One has a $20,000 deposit but has only just come out of bankruptcy and probably won't be able to refinance for 2 years verse someone who only has a $5,000 deposit but can refinance within a year, which one do you choose? My strategy is to get the highest Return on Investment for my dollar, so I would just put both senarios through the calculator and see which ones gets me the best Return on Investment at the end of the day. Having to ability to change variables around in my deal and get a highly accurate answer in seconds is a very valuable time saving programme for me.

The other thing the Vendor Finance Calculator does is give you the ability to track your entire portfolio of vendor finance deals. So you can see exactly up to todays date how much cashflow you have received, Backend Profit (equity/paper profit) you have accumulated, your average ROI, your average buyer deposit, your average cashflow, your default rate etc etc. You get an up to date big picture view of your business. This helps me keep track of my business and my goals. Its also a great planning tool aswell.

The Vendor Finance Calculator also helps you qualify your buyers and keep a record of them. I won't go into any more detail here as this post is long enough as it is.

If you want to know more about the Vendor Finance Calculator go to http://www.vendorfinancecalculator.com and have a look at it for yourself. Its 100% FREE so you have nothing to lose.

Tim Hart

 

[Qlds007]

Dont want to be a doubter but i am with Gross on this one.

As someone who operates a substantial wrap portfolio i cannot see any use for the program myself although we have adapted our own products which suit our needs given the volume of deals we hold.

Maybe for someone doing their first or second deal it maybe of use but not to a seasoned provider of VF.

 

[geoffw]

There's always LoanAlert from forumites MichaelG and Yuch.

I'm a big fan of Michael Gerber's book, E-Myth, and not just because the name is so similar. It is because Mr Gerber speaks of having systems in your business.

That was what I wanted, a system for my wrapping business. I tried spreadsheets, accounting programs and looked for commercial packages, but nothing did exactly what I wanted.

Something that would not only produce the documents I needed, but would remind me when I needed to create them.

And now I have LoanAlert to help me manage my business, I don't miss a thing.

 

[Tim Hart]

Hey Richard

I have read many of your posts and you are definately a seasoned vendor financier and as such I respect your opinion greatly. However, I don't understand when you say your with Gross on this one (i.e. you can't see a use for this programme). The programme is a tailor made vendor finance investing tool for Australian investors. It works out the most complex vendor finance deals and gives you exact results. It also can track your entire portfolio whether you have done 1 or 200+ deals. I have done a lot of research and there is no system out there that is even remotely as accurate or detailed as the Vendor Finance Calculator. Perhaps you can tell me differently?

I can understand if you personally wouldn't use the programme because you have your own software and your own systems that works for you, but what about everyone else who doesn't have the systems? I'm not just talking about people who have done 1-2 deals. I have talked to investors who have anywhere from 0-50+ wraps and all of them where very interested in what the Vendor Finance Calculator can do for them. When I first presented the software to about 20-25 vendor finance investors at a vendor finance association meeting I got everyone there to fill out a survey. On that survey it had a simple question which said "Do you think this Vendor Finance Calculator would help you in your business?". Every person except 1 said it would help their business and the 1 person who didn't said maybe.

Have either of you (Richard or Gross) seen the Vendor Finance Calculator? I would greatly appreciate it if you had a look at it and told me exactly what you honestly think of it. Bearing in mind its a work in progress, I would like to hear your honest opinions on its usefulness. Perhaps you could even suggest how I can improve it to make it more useful. I would be very interested to know what software and systems you use Richard to track your investments. I'm sure I could learn a great deal from you.

Thank you both for your replies.

Tim Hart

P.S. Loan Alert is a programme which tracks the loans you give to your buyers of your vendor finance properties. The Vendor Finance Calculator is not a loan tracking programme. It calculates how good your deals are and tracks your investment portfolio NOT the loans. I personally use Loan Alert to track my loans as well.