Options/Vendor Finance

[gcd123]

1. I have 2 properties next to me in Alexandria - Sydney - that will come up for sale in the next 2-5 years.
I am on good terms with the owners and would like to discuss securing the properties via an option or vendor finance.
2. One owner is a single lady - no mortgage - who will inherit more property and relocate. The other is an elderly lady on a pension. Both would value some general maintenance and upgrading to the properties (which I can do). The older lady could use some extra income.
3. What would be a good approach and fair financial terms to suggest ?
4. Can I get ownership under licence and claim the repairs etc. as a tax deduction ?

Thanks.

 

[paulzag]

Hi gcd

You could option the properties in return for maintenance and a fixed price.

You could buy the properties on a Vendor finance installment contract that would allow both vendors to stay.

You could lease the premises and sub-lease them back to the tenants.

As for deductability of the maintenance expenses, I'd look to having an income flow to make that work. That could be difficult if the vendors are still in there.

Find out what they need and give it to them in exchange for finance.

Regards

Paulzag
Dreamspinner

 

[gcd123]

Optins/Vendor Finance

Thanks Paulzag for the tips.

Regards,
GCD