No Money Down Deal

[minki]

I am interested in purchasing a property.
The vendor is keen to stay on as tenant. They would like to sell as they would like to free up some cash.
I am tempted to approach the vendor and ask to do a vendor finance deal, but not too familiar with how it work. I have heard talks on it but not sure how to approach it or how it really work and whether it is worth it in this case.

The vendor is asking for $260K. The rent will be around $240 per week.

I would appreciate any advise or comments.

Thank you.

 

[nhg]

The vendor is asking for $260K. The rent will be around $240 per week.

I know very little about VF deals. From the little I do know, those figures won't let it work.
Would need to be more like $350+/week.

Also isn't the whole point for the tenant to eventually buy the property?

 

[Terry_w]

I am interested in purchasing a property.
The vendor is keen to stay on as tenant. They would like to sell as they would like to free up some cash.
I am tempted to approach the vendor and ask to do a vendor finance deal, but not too familiar with how it work. I have heard talks on it but not sure how to approach it or how it really work and whether it is worth it in this case.

The vendor is asking for $260K. The rent will be around $240 per week.

I would appreciate any advise or comments.

Thank you.

If they need some cash it would be unlikely they could lend you the deposit. But they could want the opportunity to buy the property back from you paying in installments.

 

[Spades]

Hey minki,

Why don't you just low ball the vendor?

The vendor is asking for $260K. The rent will be around $240 per week.

On that return,200k max.

 

[travelbug]

Why are you considering VF? And as metioned if they want to free up money they WANT money.

At $260K I wouldn't be renting it back for $240? Why so low?


Maybe if it's worth over $300K and the low rent is in compensation for a low buy price. But for how long do you need to subsidise his rent?