Vendor finance.

Trying to work out if the vendor finance angle would suit me.

Is it possible to buy a property for the sole purpose of using it as an instalment sale. Would this be profitable at all? Does your lender need to know what you plan to do or are they ok as long as you're keeping up the repayments?
 
If you tell the lenders you're planning to sell via an instalment contract, they'll decline the loan.

My observation from looking at quite a lot of these over the last 15 years, is it rarely ends well. I'd discourage anyone from buying a property under a terms contract.

On top of all this, you're now operating as a finance provider yourself and will need a credit license to do this legally, or become an authorised rep of someone with a license (and you can't use mine!).

If you want more info about vendor financing, take a look at: http://vendorfinance.asn.au/
 
I wholeheartedly agree with Peter

People that have been doing financing for years and years will tell you that they are still learning - leave it to those who are focused on it and can get it through.

If something goes wrong with installment contracts or any other creative endevour, without a license you will always be caught out on the wrong side of the law and even if you are in the right you will still lose any case against you. I've also seen a lot go pear shaped - not worth it - stay away!
 
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