Hi
In the recent past I've noticed a increase in the number of people 'having a go' at selling a poorly performing IP with vendor finance. There are some important compliance issues involved in this process, so I've started a newsletter to help cover these issues. It's called N2P News, short for negative2positive News.
I've posted the contents of the first issue below. It has a bit of self promotion at the bottom so 'mods' please feel free to edit as necessary. I hope it's helpful.
In the current market many investors are looking to convert their investment property from negative gearing to positive cash flow by selling with vendor finance (VF). Interestingly a lot of investors have decided to undertake this VF sale on a ‘do it yourself’ (DIY) basis.
Selling your own property with VF normally involves a Lease/Option (Rent To Own), an Instalment Contract or Deposit Finance. Lease/Options are regulated by the various State Residential Tenancy Acts. Instalment Contracts and Deposit Finance are regulated by the National Credit Code.
Selling with VF can be divided into three sections:
1. Marketing & Qualifying,
2. The Legal Paperwork, and
3. On-going Management.
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