♦ 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
Market Price
Quick Sale
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
Cashflow
Ongoing cashflow
Without the headaches of owning the property
From the interest payments for the funds left in the deal
Secure
Payments to the seller may be made through arrangements where sometimes the tenant pays the seller directly
Guaranteed
Payments to the seller are guaranteed , as they may be paid directly from a tenant known to and trusted by the seller.
Capital
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.
Secure
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.
Guaranteed
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.
