Vendor Financing can help you boost your cash flow as well as grow your Investment Portfolio. Let´s run through how it works with a simple example of a Case Study.
The purchase price for the house is $210,000 which is about market value.
I have a deposit of 20% which is $42,000.
Payments are worked out on $168,000, this is worked out by taking away $42,000.
My interest rate is 6% of 30 years. My bank loan is $233 per week.
I am going to on-sell this property for $265,000 non-negotiable, $55,000 more than
my purchase price.
They have a deposit of $10,000.
So they will take a mortgage with me for $255,000.
I am charging 8% interest per annum over 30 years.
The Wrappee will therefore need to make instalment payments to me $433 per week.+ Rates Water and Insurance $158 per month divided by 4.33 which is $37.00 per week.
$433.00 + $37.00 = $470.00 per week.
Positive Cash Flow = $433 - $200= $200 Positive Cash Flow per week.
In other words, you can make $800 per month cash flow.
If you sell this property in two years, you would receive a gain of $45,000.
$255,000 - $210,000 =$45,000
This is due to the purchase price from the Wrapper on selling to the Wrappee.
It is vital we get our Mathematics right from the start. Learn more about Vendor Finance here.
Positive cash flow is possible, and once you learn the strategies you can keep it going sustainably.
I'm sharing my experience, knowledge and expertise gleaned over more than 20 years of working in this industry so you can get more than a head start to Vendor Financing without stumbling through the common pitfalls.
Download my FREE eBook to discover:
The top 3 things you need to be successful -- and how much experience you'll need
The type of person who gets the best results with this cash flow strategy
How much you can expect to make per month, and the concept of the "big pay day"
What part of the property market offers you the best opportunity for positive cash flow deals -- know the type of home you'll be looking for
Where in Australia you can use this positive cash flow strategy
Why this strategy outweighs doing it hard for the tax benefits of negative geared property (which only makes you more of a slave to a job you might not even like)
The best way to get started -- and how long it really takes to be good at this strategy
Do you need a buyer first, or a house? It's answered here!
The surprising strategy for fast tracking your success in a property deal
Common problems you're likely to encounter
How to benefit from the banks tightening home loans and financing requirements (and why you'll be seen as a "super hero" -- it's a "win-win" against the banks!
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 - https://www.youtube.com/@paulzalitis
