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So far Vendor Finance Institute has created 99 blog entries.

Easing Management Fee Confusion – version II

A few weeks ago I put out a VFI News entitled 'Easing Management Fee Confusion'.  In this edition I gave an example showing how to make your transaction Management costs invisible to your Lease/Option tenant/buyer. How to Make Your Management Costs Invisible From the number of enquiries, there's no doubt I should have included an [...]

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New Credit Reports – Information ALL Investors Need

Credit Reports are about undergo their biggest revamp since they started in Australia over 40 years ago. What's Changing And When? In a recent article on the subject, Australia's most experienced vendor finance lawyer, Tony Cordato, wrote, "As from 12 March 2014, the Privacy Amendment (Enhancing Privacy Protection) Act 2012 (Cth) will allow credit providers [...]

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Standing In The Middle – The Catch

Most vendor financiers recognise they need Australian Credit Licence (ACL) coverage or Real Estate Agent Licence coverage if they are involved in the sale of a property they don’t have Title to. The Licensing Implications Knowing this, a large number of vendor financiers have become ACL holders, Credit Representatives and/or licensed Real Estate Agents. Holding [...]

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Cross Collateralisation and Vendor Finance

If you go to any residential property forum you’ll invariably see discussions about cross collateralisation.  They range from newbie investors not realising the consequences of what their lender has done to them, i.e. cross collateralised their loans, to examples and strategies on how to ‘un-cross’ loans. What is cross-collateralisation? Cross-collateralisation occurs when more than one [...]

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Are You The Perfect Target?

Experience has shown us there are 3 main reasons your vendor finance buyers get into trouble: Unemployment Relationship breakdown Serially bad tenants that ‘target’ inexperienced vendor financiers because they’re barred from the rental market. Unemployment and Relationship Breakdown You can have the best available Application and Qualification processes in place to vet your prospective buyers [...]

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Easing Management Fee Confusion

During the day to day operations of Vendor Finance Management. we’ve noticed some vendor financiers getting confused about how to handle the costs involved with getting your vendor finance transactions managed by a specialist vendor finance administration company. In the main this is being caused by making these management costs visible to the buyer and [...]

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Refinancing Your Buyers

As the next round of Vendor Finance Association meetings approached, Tony Cordato of Cordato Partners, suggested a great topic of discussion for the NSW Meetings, i.e. ‘refinancing your vendor finance buyers into traditional loans’. How Traditional Lenders See Us Years ago there was no acceptance by traditional lenders of a vendor finance payment history and [...]

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Drug Labs

I recently received the following email from Lewis O’Brien of Lewis O’Brien and Associates: ‘FYI – I have spoken to a client who sold a property under a terms contract in December, 2012. Unfortunately the property was used to grow drugs and approximately $50,000.00 damage was done to the property in the process in addition [...]

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Capital Growth’s Hard To Find – What Next?

Recently there's been an increase in the number of people 'having a go' at selling a poorly performing property with vendor finance.  And why wouldn't you!  It's a great way to transform your property from negative gearing to positive cash flow. You may decide to undertake this vendor finance sale on a ‘do it yourself’ [...]

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3 Easy Steps To Remove Your Administration Burden

Vendor Finance Management Pty Ltd (VFM) will manage your vendor financed property in 3 easy steps. Our clients told us our start-up process was too complicated.  So our old start-up checklist has been revamped to an easy, 3 point 'Quick Start Checklist'. VFM's services ease your management burden, freeing you up to create more positive [...]

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“in the course of a business …”

ASIC Regulatory Guide 203 mentions; “In relation to the provision of credit, the National Credit Code applies to credit contracts where, among other matters: the credit provider provides the credit in the course of a business of providing credit ….”  and “In relation to credit assistance and intermediaries, the National Credit Act states that a [...]

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No ‘One Trick Ponies’ Here

It's generally recognised that it's easier to start your journey into real estate vendor finance (VF) utilising Rent To Buys (Lease/Options) instead of Instalment Contracts or Deposit Finance.  This is because Rent To Buys aren't regulated by the National Credit Code and therefore you don't need the coverage of an Australian Credit Licence. The Market's [...]

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