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Why Vendor Finance?

Updated: Feb 29

Why do Vendor Financing | Paul Zalitis | The Aussie Wrapper | Property Vendor Finance

Why Do Vendor Finance?

Some of the banks these days require 30% Deposit for a home loan. This is a huge amount of money that some people do not have. As you the Wrapper (Vendor Financer) can ask for a lot less deposit to help the Wrappee (Home Purchaser) purchase a home from you. This is a win-win.

Check out this video on How Property Vendor Financing Works. Don't forget to subscribe to our YouTube channel, so you can learn more.


Do Not WRAP a House Unless You Can Afford to Pay that First Mortgage.

Can I Afford to Purchase a Home For Positive Cash Flow? The first essential is for me to do my mathematics.

Ensure you can pay the first mortgage | Paul Zalitis | The Aussie Wrapper | Property Vendor Finance
Ensure you can pay the first mortgage


The asking price for the house is $195,000 which is about market value. I will not spend more than $182,000 to buy it – $13,000 less than the asking price. I have a deposit of 20% which is $36,400.

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 4% which is $7,280. The Lending Institution will give me a loan at 9.5% over 30 years. I need to borrow $145,600.

This will cost me $1,224.28 per month or $282.74 per week. I am going to on-sell this property for $212,000 non-negotiable, $30,000 more than my purchase price. *I am asking for a MINIMUM deposit of $10,000. First home owners grant (FHOG) is currently $7,000 – so the WRAPPEE must have a minimum of $3,000 in cash which is the deposit.

So they will take a mortgage with me for $202,000. I will ‘fix’ my interest rate with my financial institution for 2 years.I am charging 11.5 % interest per annum over 30 years.

The WRAPPEE will therefore need to make instalment payments to me of $2,000.38 per month or $461.98 per week.

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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