How To Use Vendor Finance
In this week’s show, Simon shares the ways in which you can use vendor finance, a creative way of funding investment deals using very little, or even none, of your own money, and which can result in huge profits for your sellers. KEY TAKEAWAYS Vendor finance usually means buying a property at full market value, but the seller themselves help to fund the deposit and any costs involved. You must find a motivated seller, who isn’t interested in a purchase lease option or similar, and who wants the property taken off their hands. Equity is vital, and ideally there should be no mortgage at all. Ideally, the interest you’ll pay to the seller on a monthly basis, should be less than the mortgage will cost you. You must also ensure that the property will have a strong cash-flow, so that you will be able to pay interest and make money for yourself at the same time. The core foundation of vendor finance is to investigate fully beforehand. Ask powerful, valuable questions and never make assumptions. It is a strategy that must work for both parties. BEST MOMENTS ‘You basically get a loan from the seller!’ ’By doing vendor finance, sellers can make a lot more money’ ’This is a way for us to give our seller more money’ ‘You need a seller who’s open to a creative solution' VALUABLE RESOURCES To access more free Creative Finance Strategies visit www.creativefinancetraining.co.uk Property Magic: How to Buy Property Using Other People's Time, Money and Experience by Simon Zutshi To find your local pin meeting visit: www.PinMeeting.co.uk and use voucher code PODCAST to attend you first meeting as Simon's guest (instead of paying the normal £20). iphone: http://bit.ly/pinAPP1 Android https://bit.ly/pinAPP2 Register at Mindset For Property at - www.mindsetforproperty.co.uk ABOUT THE HOST Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32. Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk. pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors. Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way. How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth. Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book. Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals. CONTACT METHOD Contact and follow Simon here: Facebook: http://www.facebook.com/OfficialSimonZutshi LinkedIn: https://www.linkedin.com/in/simonzutshi/ YouTube: https://www.youtube.com/SimonZutshiOfficial Twitter: https://twitter.com/simonzutshi Instagram: https://www.instagram.com/simonzutshi/