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 to arrears and the like.
I have heard rumours that this is not an isolated incident….’
Tony Cordato of Cordato Partners then commented:
‘I have not come across a situation of a VF house used as a drug lab, but once or twice have had experience with a drug dealer’s house.
The tell-tale sign for the drug dealers houses was a wad of cash handed over for the up-front money.
Needless to say, the vendor did not make sufficient enquiries about the source of the funds, or the ongoing funds.
I am coming around to the view that until a vendor financier is experienced, they should have a mortgage broker vet all prospective purchasers.’
Since the advent of the National Credit Code in 2010 there has been a general push to better qualify vendor finance buyers, no matter what technique you’re using to sell your property.
I like Tony’s idea for newbies to use a mortgage broker to vet prospective buyers. Another couple of ideas that spring to mind are:
• Get a Certificate IV in Finance & Mortgage Broking. I’ve seen Cert IV courses completed in as little as 3 days in the classroom. There are also distance education options available. All our Credit Representatives do the Cert IV course and, with exception, they’ve all commented how the course increased their confidence and industry knowledge.
• The Application Guide and Qualification Pack from the VFI. These two packs have been setup to ensure your Application and Qualification process is setup to follow the same procedure used by mortgage brokers.