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Property Investing - Vendor Finance
Goals
Property Investing Secrets: When you Make Property Easy to Buy for People
Using Vendor Finance It Is Easy To Sell |
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When property investing, my goal is to make it easy for people to buy my
properties, that’s why I offer vendor finance. You have the advantage when
you buy properties from sellers when property investing. I always think:
“Why do I want to go a get a bank loan when this seller already has a loan?
Why don’t I just take control of their loan if the seller is open to me
making payments on their mortgage?” You’d be surprised how easy this is and
how simple the paperwork system is. And once that’s complete, you vendor
finance the property to a new buyer.
Let’s imagine that the seller has agreed to this arrangement and moved. You
look after the mortgage on their house, you’ve got no bank liability, you’ve
got no loans and yet you start creating assets and any future capital gain
and profits. In many areas you have sellers who are unable to make their
mortgage payments that they have liability on and this is a very simple way
that you both benefit when property investing. Your exit strategy is to
vendor finance this property to a new buyer and receive positive cash flow
on the deal.
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When you’re property investing the time is right to buy on terms because sellers are very flexible. It’s not the price under which you buy the property; it’s the terms because if you get the terms then you don’t have to qualify for a bank loan. In a hot market, sellers are not as negotiable on terms, but in a cooling or down market, you can do absolutely all sorts of things with terms.
You’ll find as I have done when property investing that if a seller is
motivated to sell and you offer a solution to solve their problem (an unsold
property) and it works for the seller and you then it’s a good deal for
every one. In order for the investor to make payments to the seller, they’ll
need to vendor finance the same property to new buyers.
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