Vendor Finance
Keystone Financial is an expert when it comes to Vendor or Owner finance arrangements.  We understand Vendor Finance and have extensive experience in dealing with clients who are in the business of providing it.

We are able to aide in structuring finance for the initial purchase of a property that will be ‘wrapped’ so that you can maximize your return and are able to assist with the following additional services exclusive to wrappers:

- Review and prepare your personal balance sheet to maximize borrowing capacity
 
- Provide cash flow analysis to ensure maximum borrowing capacity
 
- Use our network of lenders that can provide finance for clients who need to exit from a wrap
 
- Provide credit checks on potential clients (small fee applies)
 
- Provide a review of wrap client applications to determine credit worthiness. Read our report on Australian Credit Reporting, how to build a good file and what to do if you’ve had a credit problem
 
- Setup a plan for exit strategy from vendor finance deals
 
- Use our network of agents and other finance brokers to source potential properties for sale
 
- Click this link for powerful property search software exclusive to Keystone Financial and available on a subscription basis. It will reduce the amount of time you spend looking for property and help you find properties more suited to VF transactions.

If you are keen on vendor financing then Keystone Financial has the knowledge and experience to help.

To find out more on the particulars about how Vendor Finance works from a legal point of view go to: www.vendorfinancelawyer.com.au. Tony Cordato of Cordato Partners is an expert in the field and his website is a tremendous resource for information on vendor financing.
Things you should know
This excerpt from the Cordato Partners website: www.vendorfinancelawyer.com.au will answer some basic questions about vendor finance:

THE THINGS YOU SHOULD KNOW ABOUT RENT TO BUY
 
1.   A standard residential lease (Residential Tenancy Agreement) is used to give possession to the Purchaser.
2.   The purchaser pays rent under the lease.
3.   The purchaser signs an option to purchase the house in 2 or 3 years, at a price fixed up front.
4.   The purchaser pays for the option, by paying up front and ongoing option fees.
5.   The purchaser’s payments are credited (as debited) against the deposit payable under the Contract.
6.   The purchaser may “earn” the part of deposit using “sweat equity”, by carrying out work on the property.

THE THINGS YOU MUST KNOW ABOUT INSTALMENT FINANCE
 
1.   It is documented by way of a standard Contract for Sale with changes to term and terms for payment of the price and an Instalment Payment Schedule & Credit Code disclosure statement.
2.   A long completion time of 25/30 years.
3.   The sale price is fixed up front. A small deposit is paid and the balance is paid by instalments, weekly / fortnightly or monthly, with interest.
4.   Purchasers move in to occupation immediately.
5.   Purchasers look after all maintenance & repairs, pay council rates, water rates and insurance.
6.   Purchasers under Instalment Contracts qualify for First Home Purchaser concessions, including the First Home Owners Grant & Stamp Duty Exceptions.
7.   Most purchasers refinance (cash out) the Contract within 3 years – because they have built “equity” and a track record of payments.
8.   The title to the property remains in the name of the owner until the final instalment is paid

This information is reproduced with permission from Tony Cordato of Cordato Partners.