I know what you’re thinking. What on earth is vendor finance?
Vendor finance is an alternative to going to a bank and borrowing money. But in practice, it actually works fairly similarly.
You form an agreement, which usually involves paying some money as a deposit on a property. Then you make repayments at a regular rate. Those repayments may or may not involve interest, depending on the agreement you created.
The key difference?
You make this agreement directly with the vendor.
That means you’re cutting out the middleman – the bank.
Instead, you’re going straight to the source and creating an agreement with them.
And you know what this means, don’t you?
It means that you have much more control over the process.
You don’t have to go through a burdensome loan application process with vendor finance. And a vendor typically isn’t going to try and get you to provide them with several months’ worth of documentation.
With this option, you can usually just prove that you can pay and go right ahead.
And with vendor finance, you also avoid all the fees that banks attach to their home loan products. That means no Lenders Mortgage Insurance (LMI) if your deposit isn’t quite right.
In short, vendor finance can save you a whole lot of time and thousands of dollars.
So…why doesn’t everybody do it?
Simply put, a lot of vendors don’t offer it. They’d rather you go through the banks and follow the traditional route.
The key phrase there is a lot.
That means most – but not all.
Your task is to find the vendors who are open to the idea of this alternative. These are the people who can provide you with a pathway into investing if you don’t have the time or money to deal with banks.
And that’s where we may be able to help.
P.S. Whenever you’re ready… here are 4 ways I can help you grow your investing income using property:
1. Join the free ‘The Successful Property Investor’ Facebook group and connect with other investors who are already using Vendor Finance, or have come to learn more about them. It’s our Facebook community where smart investors learn to create more income, ideas, and independence. — Click Here
2. Watch our free training ‘The 4 Step Game Plan to Profit from Property Without Owing It’. Click this link.
3. Join our ‘Creative Property Investor’ Program
If you’d like to work with me on growing your investing income using a different Vendor Finance strategies… just Click this Link and schedule a call.