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How to do Vendor Finance - Case Study #2

Updated: Feb 29

The big question people ask about getting into Vendor Financing is this. "Can I afford to purchase a home for positive cashflow?"

Here's a Golden Rule. DO NOT wrap a house unless you can afford to pay that first mortgage.

Yes, all investment programs come with their fair share of risks, and it is also our responsibility to research and really learn as much as we can, from books, seminars, courses, experts, coaches, people who have been in the business and who understand how it works.

We shared Case Study #1 previously to help you see how the numbers work. Here's another Case Study to help you get a better understanding of Vendor Finance. And remember, questions are a positive sign you are interested and keen to learn more and better. So do get in touch if you want to understand more about Vendor Finance.

The asking price for the house is $550,000 which is about market value.

I will not spend more than $500,000 to buy it- which is $50,000 less than the asking price.

I have a deposit of 20% which is $100,000.

I need to make provision for Stamp Duty and legal fees which I need in addition to the deposit to make the purchase. I will allow $20,000.

The Lending Institution will give me a loan at 5.5% over 30 years.

I need to borrow $400,000.

This will cost me $2271.16 per month or $524.52 per week.

I am going to on-sell this property for $585,000 non-negotiable.

That's $35,000 more than my purchase price.

I am asking for a MINIMUM deposit of $20.000.

For $565,000, I am charging 7.5% interest over 30 years. The interest is 2% above what I am paying.The Wrappee will therefore need to make instalment payments to me of $3950.56 per month or $912.37 per week.

Positive Cash Flow $3950.56 - $ 2271.16 = $1679.40 per month.

If you sell the property within 2 years you can gain a profit of $35,000.

Vendor Financing is something I have been doing for more than 20 years, and I have seen the joy and relief of many families who have finally managed to own their homes thanks to this, and I have coached others in Vendor Financing so they can go on to help families achieve their home ownership dreams.

Benefits of Vendor Finance

Banks nowadays ask fo 30% deposit for loans and that is a really tall order for many people, leaving them stranded without a way to ever purchase their own homes.

What I always tell people is this is a win-win strategy. You get your positive cash flow, and someone else gains a home.

You can say goodbye to negative gearing losses and start making an income from real estate right away.

You gain financial and mental freedom by creating consistent, sustainable revenue through positive cash flow. (And yes, multiple income streams do exist, and YOU can have that with Vendor Financing.)

The Ultimate Free Gift

If having this peace of mind appeals to you, get the Aussie Wrapper's Ultimate Free Gift now.

Here's what you get:

  • ‘The 7 Biggest Fears People Have About Wrapping a House for Profit’ DVD (Value $37.00)​​

  • ‘Positive Cashflow Property Investing Secrets’ Audio CD (Value $17.95)​

  • Vendor Finance Lead Generation Resource DVD and Audio CD (Value $19.95)​

  • ‘The Australian Wrap Report’ Package (Value $97.00)​

All this information gleaned over years of experience is worth $171.90. Now it is FREE to you so you can get started making weekly profits with vendor finance. Get it now.

To Your Success Paul Zalitis The Aussie Wrapper


About Paul Zalitis, the Aussie Wrapper

What I’ve been doing is helping mates create positive cash flow and helping them achieve their dreams of owning property and building their finances through Property Vendor Financing.

Subscribe to our YouTube channel to learn more about Property Vendor Financing -


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