Making an Offer via Seller Financing

**spaceman** · 16-04-2012, 06:06 PM

^ and if after 3 years the property is worth maybe $350k?????

Sure it can be done.....but like I said earlier risk is too high for my liking....It'd have to be a stellar deal for me to entertain it.

Cheers
Spaceman

**Niall** · 17-04-2012, 11:27 PM

Originally Posted by mattinvestor

Niall - interesting.
Well I was wondering if you could have the seller financing for at least 15-20 years. I read this as a strategy from one investor.

But i have read of your strategy, where the seller financing only occurs for 2-3 years and then switch to conventional bank financing. Why would you go with your method? What are the benefits of only haveing vendor financing for 2-3 years and then switching?

Purchaser unable to finance the purchase now but will be eligible for mortgage in about a year. Ended up agreeing a 25 month vendor finance as a buffer.

All the best,

Niall

**mattinvestor** · 23-04-2012, 08:59 PM

what generally would be the reason that someone would be able to finance later?

is it that the person expects that they will have increase in salary? or they would have saved more over that period of time?

**PatMat** · 24-04-2012, 01:34 AM

Originally Posted by mattinvestor

what generally would be the reason that someone would be able to finance later?

is it that the person expects that they will have increase in salary? or they would have saved more over that period of time?

There are many reasons - e.g. waiting for an old issue to disappear from a credit record, waiting for residency, etc. Or as mentioned before expecting the house price to raise therefore lowering the LVR to satisfy the bank. Any of these may take months to years.