Vendor Finance Companies In Victoria?
- Thread starter MCS_80
- Start date
Vendor finance generally means that the person selling is giving the finance.
ie he is lending you the money to buy his property.
He doesnt take a lump sum, but you make the monthly repayments to the vendor instead of the bank.
The is usually no 3rd party or external company involved.
ie he is lending you the money to buy his property.
He doesnt take a lump sum, but you make the monthly repayments to the vendor instead of the bank.
The is usually no 3rd party or external company involved.
Yep.
I understand the theory behind Vendor Finance.
I am looking for Vendor Finance companies to discuss oportunities I can offer.
Cheers
Mick
So your looking for companies that for some reason or another own decent amounts of property that they are looking to offload and are prepared to work with potential buyers?
Assuming your talking about commercial transactions, look for stuff that's listed as mortgagee sale. Smaller lenders (some larger too - think B&B) have gotten themselves into trouble by doing loans 12 months ago that prehaps they shouldnt. They may be flexible on vendor terms as they are well aware of how depressed the commercial market can be at present (property probably wouldnt be at mortgagee if it wasnt)
As for companies that specialise in offering vendor finance, I've never heard of one
Assuming your talking about commercial transactions, look for stuff that's listed as mortgagee sale. Smaller lenders (some larger too - think B&B) have gotten themselves into trouble by doing loans 12 months ago that prehaps they shouldnt. They may be flexible on vendor terms as they are well aware of how depressed the commercial market can be at present (property probably wouldnt be at mortgagee if it wasnt)
As for companies that specialise in offering vendor finance, I've never heard of one
Finally, someone who understands my original question.
I am looking for a company or person who offers Vendor Finance to people who are looking at buying a house.
How hard is this to understand?
I dont think I can make my first question any simpler/easier to understand.
Please explain to me anything I am missing. I am new to property investing, but I dont think I am asking anything that is to difficult to understand.
Thanks for the feedback everyone.
Cheers
Mick
hi
for me this question is a lttle bit wrong and thats why the answer are not what you are seeking.
and to get to your answer first you need to ask the right question first.
now vendor finance is not a true type of finance
as in a lender is not giving money but the vendor is
so if you understand vendor finance and I take it from your post you do
then the owner of the property( the vendor) allocates a part of the deal to stay in the deal and for that they get paid a commission or fee and that is usually in the form of interest but does not have to be and I alot of mine is not.
as is some of them the vendor finance has no cash attached at all.
and is still vendor finance( and no not sure if this type of deal is done in vic).
the term vendor finance is simply that a vendor is forgoing the full payment up front to get paid at a latter date.
now I don't understand nor would I think in this martket there is a lender that is doing vendor finance.
what you maybe talking about is vanilla finance,mezz funding or second mortgages and there are alot doing that but the rates are very different
the other which I don't have anydealing with are wraps and they are like to me a laybuy of a house.
what I think you need to do is try to explain a example of a deal and then I would have a better chance of working out what type of funding it is.
I have one deal with 2% for 5 years 30% vendor finance back now if you are right and there is a funder that will give me 150k at 3% for 5 years and make a profit thats a very lean pencil company.
hope this helps sorry in advacne for any grammer mistakes
for me this question is a lttle bit wrong and thats why the answer are not what you are seeking.
and to get to your answer first you need to ask the right question first.
now vendor finance is not a true type of finance
as in a lender is not giving money but the vendor is
so if you understand vendor finance and I take it from your post you do
then the owner of the property( the vendor) allocates a part of the deal to stay in the deal and for that they get paid a commission or fee and that is usually in the form of interest but does not have to be and I alot of mine is not.
as is some of them the vendor finance has no cash attached at all.
and is still vendor finance( and no not sure if this type of deal is done in vic).
the term vendor finance is simply that a vendor is forgoing the full payment up front to get paid at a latter date.
now I don't understand nor would I think in this martket there is a lender that is doing vendor finance.
what you maybe talking about is vanilla finance,mezz funding or second mortgages and there are alot doing that but the rates are very different
the other which I don't have anydealing with are wraps and they are like to me a laybuy of a house.
what I think you need to do is try to explain a example of a deal and then I would have a better chance of working out what type of funding it is.
I have one deal with 2% for 5 years 30% vendor finance back now if you are right and there is a funder that will give me 150k at 3% for 5 years and make a profit thats a very lean pencil company.
hope this helps sorry in advacne for any grammer mistakes
Thanks for the reply Grossreal.
I wasn’t sure how to ask my question in the first place, much appreciate the feedback
I was under the impression that VF can be turned into a business and that some people would be doing it fulltime?
I am just after some people to call to discuss some offers I have in mind that’s all.
I have googl'ed "Vendor Finance" and have found a few companies that offer "Vendor Finance" and make it clear they are selling money, but I came to Somersoft to get help first as I believe there are some smart cookies here and assumed someone would have a contact or two in the "business" to lead me to.
If not, ill "Google" away and pound the pavement the old fashioned way.
Maybe I just create my own VF company
Cheers for the feedback everyone.
Mick
I wasn’t sure how to ask my question in the first place, much appreciate the feedback
I was under the impression that VF can be turned into a business and that some people would be doing it fulltime?
I am just after some people to call to discuss some offers I have in mind that’s all.
I have googl'ed "Vendor Finance" and have found a few companies that offer "Vendor Finance" and make it clear they are selling money, but I came to Somersoft to get help first as I believe there are some smart cookies here and assumed someone would have a contact or two in the "business" to lead me to.
If not, ill "Google" away and pound the pavement the old fashioned way.
Maybe I just create my own VF company
Cheers for the feedback everyone.
Mick
Mick
I am certainly not aware of any listed Vendor Finance Companies merely individuals or Private Companies such as our own offering such loan facilities.
If you have a number of deals then there is nothing to stop you starting your VF Company and offering finance to prospective buyers.
Do enough of them and I assure you it is very financially rewarding.
Unfortunately as I mentioned earlier we dont lend outside of Qld.
I am certainly not aware of any listed Vendor Finance Companies merely individuals or Private Companies such as our own offering such loan facilities.
If you have a number of deals then there is nothing to stop you starting your VF Company and offering finance to prospective buyers.
Do enough of them and I assure you it is very financially rewarding.
Unfortunately as I mentioned earlier we dont lend outside of Qld.
hi
I think you will find that the groups you are talking about is not offering vendor finance
but
vendor
finance
ie if you are a vendor we will fund you.
similar to equipment finance
big difference
its the same a caveat lending and bridging finance very similar items but very different in there use and cost.
true vendor finance is a vendor that will finance you.
now there is also equity finance which is again very similar in that a equity person fills the finance gap of a project for a fee.
again equity finance is not a company and that market goes from say 100k upwards of a billion and any thing in between.
and there are alot of equity players
vendor finance is not some thing that you will make money out of anyway.
its a means to an end finance and the money is not in the vendor finance its in the deal.
the vendor finance part is usually 20% of the deal sometime higher but its the margin in the deal that makes the money and vendor finance I use to get a deal over the line and really if the cost of the money is lower then bank rates and they usually are its cheaper for me.
nd even with vendor finance if the numbers just don't stackup then its a no goer anyway.
for me your time would be better spent finding the deal and then finding out how to fund it.
and vendor finance is only one way there is hell of alot of others.
I don't wish to pour cold water on your ideas but the deals are there and for me its better to pound the foot path looking for deals if that what you are looking for.
I think you will find that the groups you are talking about is not offering vendor finance
but
vendor
finance
ie if you are a vendor we will fund you.
similar to equipment finance
big difference
its the same a caveat lending and bridging finance very similar items but very different in there use and cost.
true vendor finance is a vendor that will finance you.
now there is also equity finance which is again very similar in that a equity person fills the finance gap of a project for a fee.
again equity finance is not a company and that market goes from say 100k upwards of a billion and any thing in between.
and there are alot of equity players
vendor finance is not some thing that you will make money out of anyway.
its a means to an end finance and the money is not in the vendor finance its in the deal.
the vendor finance part is usually 20% of the deal sometime higher but its the margin in the deal that makes the money and vendor finance I use to get a deal over the line and really if the cost of the money is lower then bank rates and they usually are its cheaper for me.
nd even with vendor finance if the numbers just don't stackup then its a no goer anyway.
for me your time would be better spent finding the deal and then finding out how to fund it.
and vendor finance is only one way there is hell of alot of others.
I don't wish to pour cold water on your ideas but the deals are there and for me its better to pound the foot path looking for deals if that what you are looking for.
Thanks for the feedback grossreal.
Pour cold water on my ideas? NO WAY!!!
. Its people like you that I want to chin wag with and bounce ideas off I have no issue with anyone challenging my thoughts, (I encourage it) and will always appreciate any feedback, even if I dont understand or agree with it sometimes.
(Note : I understand and agree with your views)
Cheers
Mick
Hi,
Here's some thoughts...
1) You want to run it as a business, then you'll need a business plan. You'll need to do your SWOT, etc
2) Determine your market, where are you going to wrap - local or interstate?
3) Are you going to find the property then wrap or let borrowers find their own?
4) What are your costs, risks?
5) What is your exit strategy, what will you do if the deal goes south;
- after exchange but before the cooling off period?
- during settlement?
- during the loan term?
6) What is your starting capital?
7) Will you use investors, how will you structure your JV agreements?
8) Will you use lease/options or terms contracts?
9) Will you use the new super rules to see investors?
10) How will you advertise, how will you write your ads
11) Whats you marketing plan?
12) Whats your expected cashflow per deal
Your starting capital may be thought of as the capital to establish your system - after some successes your may use that in your PDS (product disclosure statement) to give to investors to prove you generate results.
Just a few ideas
Michael Gruber
Here's some thoughts...
1) You want to run it as a business, then you'll need a business plan. You'll need to do your SWOT, etc
2) Determine your market, where are you going to wrap - local or interstate?
3) Are you going to find the property then wrap or let borrowers find their own?
4) What are your costs, risks?
5) What is your exit strategy, what will you do if the deal goes south;
- after exchange but before the cooling off period?
- during settlement?
- during the loan term?
6) What is your starting capital?
7) Will you use investors, how will you structure your JV agreements?
8) Will you use lease/options or terms contracts?
9) Will you use the new super rules to see investors?
10) How will you advertise, how will you write your ads
11) Whats you marketing plan?
12) Whats your expected cashflow per deal
Your starting capital may be thought of as the capital to establish your system - after some successes your may use that in your PDS (product disclosure statement) to give to investors to prove you generate results.
Just a few ideas
Michael Gruber
Thanks for the feedback MichaelG.
I am at the very beginning stages of studying IP's etc(Read 5 books and studied for 12monthes). I have previously owned a PPOR (purchased when I was 20 yrs old), but since sold it due to a relationship break up, and now am starting from scratch again.
I am working out a business plan on my own for the time being with a VF business in mind, and am asking (chewing ears off) everyone I can who has experience in VF for advice and direction.
Cheers again
Mick
I am at the very beginning stages of studying IP's etc(Read 5 books and studied for 12monthes). I have previously owned a PPOR (purchased when I was 20 yrs old), but since sold it due to a relationship break up, and now am starting from scratch again.
I am working out a business plan on my own for the time being with a VF business in mind, and am asking (chewing ears off) everyone I can who has experience in VF for advice and direction.
Cheers again
Mick
Hi Mick
The next Melbourne meeting of the Vendor Finance Association of Australia will be on 25 September. Details can be found at:
http://www.rickotton.com/mainforum/viewforum.php?f=9
Cheers, Paul
The next Melbourne meeting of the Vendor Finance Association of Australia will be on 25 September. Details can be found at:
http://www.rickotton.com/mainforum/viewforum.php?f=9
Cheers, Paul
VFA Meeting in Melbourne
Hi Mick,
Been a long time occasional reader of these forums but thought I'd pop up and mention that we offer various forms of vendor finance in Melbourne and will be at the next VFA meeting in Melbourne. Happy to say hello if I recognise you there.
Cheers
Sheree
Hi Mick,
Been a long time occasional reader of these forums but thought I'd pop up and mention that we offer various forms of vendor finance in Melbourne and will be at the next VFA meeting in Melbourne. Happy to say hello if I recognise you there.
Cheers
Sheree
Don't know if these are any good or not just companies I found on the internet
http://www.houses4u.com.au/
http://www.nodepositproperty.com.au/
I do not think they cover melbourne though
http://www.houses4u.com.au/
http://www.nodepositproperty.com.au/
I do not think they cover melbourne though
