vendor financing land

[BMan]

i currently have some land thats sitting doing nothing and costing me about 6k a year. its a good spot but plans changed and although i dont mind holding it its holding me back.
i have had a semi interested person talk about it
the problem is that with vacant land its a 75% lend and if they cant afford a deposit of that price i wont be able to sell it.
how do i make a fair vendor finance deal, i dont want to give it away but if im going to do them a favor by VF what do i need to do?

 

[Terry_w]

you could simply lend thr purchaser the deposit they need to purchase the land. but it wont be easy for them to get finance.

 

[Rolf Latham]

i currently have some land thats sitting doing nothing and costing me about 6k a year. its a good spot but plans changed and although i dont mind holding it its holding me back.
i have had a semi interested person talk about it
the problem is that with vacant land its a 75% lend and if they cant afford a deposit of that price i wont be able to sell it.
how do i make a fair vendor finance deal, i dont want to give it away but if im going to do them a favor by VF what do i need to do?

Hiya

90 % may be doable with traditional bankfinance

ta
rolf

 

[BMan]

ok well i shall see if they are interested then and hopefully can do a deal
how doess it work with selling privately? do you only need a conveyancer?

 

[Lofty]

Hi Bman

If they can get traditional finance that's the way to go. However if that's not possible you could sell the land to them with a VF Instalment Contract (IC). As far as setting up an IC, all you need is your sale price, details of any financing on the block and an idea of what you think is a fair monthly positive cash flow. With that information an IC can be setup pretty quickly.

However before you go ahead with the IC have a read of the areas you need to cover, at: http://somersoft.com/forums/showthread.php?t=80531

Cheers, Paul