One of they ways (as I understand it) to invest in property without having a lot of equity is to get vendor to leave finance in the house. So if the property is 200K and the investor only has 20K deposit then vendor can leave 20K in the house and the investor will take that on as a loan at maybe 10%. The bank will be happy as there is 20% (total 40K) deposit and the loan will then be 160K.
So my questions are.
1. Is my understanding correct ?
2. How does one go about suggesting vendor finance to people that aren't familiar with it and may be a bit apprehensive ?
3. With a vendor finance loan does the normal interest rate tax deductions still apply.
Any further information regarding vendor finance would be great.
Thanks
So my questions are.
1. Is my understanding correct ?
2. How does one go about suggesting vendor finance to people that aren't familiar with it and may be a bit apprehensive ?
3. With a vendor finance loan does the normal interest rate tax deductions still apply.
Any further information regarding vendor finance would be great.
Thanks
Comment