what does 'vendors terms ' mean

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From: Tristan N



could someone please tell me what vendors terms means, also when and where it is used

thanks

Tristan

" to walk on water you need to know where the pebbles are"
 
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Reply: 1
From: Paul Lytwyn


Hello Tristan,
My understanding of Vendors Terms means that the vendor will /can help the buyer to purchase the property. A vendor is keen to sell and therefore as long as they have recovered their cost will sometimes assist the buyer by lending the 20% gap. Usually about 1 to 3% above market rates.
Now if you become a "seller" you too can provide "Vendor Terms" to a prospective buyer. Buyers are happy because they have secured the deal without the need to pay excessive rates. You as a seller can make EXTRA bucks because hopefully you have sold for the price you wanted and now are earning interest on the original deal.
Cheers Paul.
 
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Reply: 1.1
From: Jacque Parker


Paul is right and has given a very good explanation. Vendors terms are just that- pretend that the vendor is the bank and you begin to understand what it all means. The reasons people choose to buy a property on vendors terms rather than seek a loan through a bank include:

1. The purchaser may not have enough deposit for a bank to lend them money in the first place.

2. The purchaser may have a bad credit history or a series of debts that have prevented him/her from getting a housing loan.

3. The purchaser may be able to afford repayments but his/her earnings may be too erratic (eg self-employed, works casually)for the bank to lend money.

These are just some of the reasons people turn to vendor finance. Of course, the vendor himself/herself must be prepared to do the research themselves to sift through the people... it can be too risky otherwise. It is a good way, however, for those buyers whom banks have completely shut out, to obtain a house.
 
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Reply: 2
From: John P


To find out more about "Vendor Terms"
and doing Wraps, I have a free report that may be of interest.

Just email me for a copy, as its too long to post here on the forum.

[email protected]

Regards
 
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