Part Vendor Finance
Be free of the headaches of owning property and still receive some of the benefits.
Part vendor finance is where the seller receives some (say 60%) of the proceeds
of a sale at settlement, and leaves some (say, 40%) money in the deal.
The 40% left in the deal is the vendor finance amount.
Benefits to The Seller
- Can be as quick as 30 days from the completion of satisfactory due diligence
- Typically occurs in 60 days from the completion of satisfactory due diligence
- Ongoing cashflow
- Without the headaches of owning the property
- From the interest payments for the funds left in the deal
- Payments to the seller may be made through arrangements where sometimes the tenant pays the seller directly
- Payments to the seller are guaranteed , as they may be paid directly from a tenant known to and trusted by the seller.
- Receive "some capital now, some later"
- The seller will receive a large portion of the sales funds at settlement, and the remainder of the proceeds of the sale over an agreed time as instalments with an interest component, or a balloon payment at the end of the term.
- The funds left in the deal by the seller are secured by a second mortgage or caveat over the property being sold. This is a property that the seller knows and trusts as security.
- If, during the term of the vendor terms, the purchaser fails to pay the seller moneys owed within 30 days of the date that any moneys are due, the purchaser guarantees to allow the seller to purchase the property back from the buyer at the original purchase price, not including acquisition costs.
Flexible terms to suit seller's needs
- By mutual agreement, we can adjust the sale to best suit the sellers needs from a capital and cashflow perspective.