Welcome to the Vendor Finance Institute Blog

/Welcome to the Vendor Finance Institute Blog/

They Don’t Know What They Don’t Know

Karen & I have been to many investment and property seminars and almost all have suggested to build a team of experts around you before you start. The team of suggested experts often looks like the following: Accountant Lawyer Mortgage Broker Independent Valuer Contractors such as plumbers, painters, cleaners, pest controllers Property Manager But how [...]

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Old Vendor Finance Educational Material – Beware

We regularly receive calls looking for help with all types of Vendor Finance issues. Recently quite a few questions have come up, after studying old vendor finance educational material and have come as a bit of a shock. The Focus was Different Back Then These questions have highlighted just how much our Industry has changed [...]

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There’s Still Damage To Work Through

Back in the ‘naughties’ (the 2000’s), budding vendor financiers were encouraged to become ‘transaction engineers’. The ‘transaction engineering’ plan went: The vendor financier finds a prospective seller, i.e. a seller interested in selling their property with vendor finance, and; Enters into a joint venture with the seller to find a vendor finance buyer and structure [...]

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Unscrupulous Sellers

Recently we heard from an experienced Vendor Financier regarding the frustration they’ve experienced around unscrupulous sellers (vendors) attempting to renege on vendor finance sales. Why Would They Do It? Our immediate reaction to that question is ‘greed’. We too have witnessed this appalling proof of what a few people will do when the ‘greed gland’ [...]

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Victoria’s Review of Vendor Finance

Consumer Affairs Victoria is currently undertaking the Consumer Property Law Review. This review has consisted of three Issues Papers, with submissions to the third Paper closing on 13 May 2016. Thirty-one submissions were made. Twenty-seven of which were public submissions that were released last Friday. What Does This Have To Do With Vendor Finance? As [...]

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Should All Home Buyers Get ‘National Credit Code’ Protection?

Vendor Financiers have for years been proud of the flexibility offered when selling vendor financed residential property to home buyers. Considering the general level of financial literacy in the community, is this quiet assurance that we’re doing the right thing, misplaced? It’s been an interesting insight helping Karen in Vendor Finance Management for all these [...]

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10 Vendor Finance Mistakes To Avoid In Vendor Finance

It has been awhile since we last looked at common mistakes to avoid when using Vendor Finance to sell a property. While our Industry has settled down considerably since the introduction of the National Credit Code in 2010, a couple of years is a long time in the world of finance. Let’s have a look at [...]

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Is it Possible to Reduce Your Workload by More than 40%?

When you’re putting together a Vendor Finance transaction you need to oversee the following transaction modules: Marketing Application Qualification Instructing a lawyer Possession Administration An Earlier Workload Reduction Awhile back we could see the Administration task taking up way too much time, so we outsourced this module to Vendor Finance Management. The time we got [...]

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Getting Started In Vendor Finance – And The Costs Involved

Since the Finance Brokers Association of Australia (FBAA) made a decision to represent vendor financiers and, more recently, since the first round of FBAA Vendor Finance Meetings, there has been a resurgence in interest in the Vendor Finance Industry. Hence this issue of VFI News. An issue dedicated to those new comers to our great [...]

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American or Australian?

We first started administering Instalment Contracts back in 2003. The trouble was, we were using a program that used the ‘American’ system of calculating loan interest, instead of using the Australian method of calculating home loan interest. How Does the ‘American’ System Work? Very generally, the ‘American’(read USA) system starts by looking at your loan [...]

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