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Need Buyers Agent who will take on a difficult task

Discussion in 'The Buying & Selling Process' started by Kate ML, 18th Jul, 2015.

  1. Kate ML

    Kate ML Member

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    Hello everyone.
    I read Somersoft forum for a few years but never wrote there. This is my first question ever.
    Can anyone recommend a Buyers Agent who will not be averted by a difficult task?
    The task is to find a one-bedroom unit that can be vendor financed in one or other way. Ideally it would be in Sydney, however I was just told that it's impossible - so hot is the market. I would still prefer Sydney, maybe Newcastle. Could be Brisbane.
    I am open to all creative suggestions from the agent. But it seems not many are interested.
    Hope you can suggest someone.
     
  2. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Alan from Propertunity or Jacque from House Buyers Australia
     
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    how much of a premium are you prepared to pay for the property ?

    ta
    rolf
     
  4. jaybean

    jaybean Well-Known Member

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    In general, what sort of premium would you be expected to pay? There's a property I really want but have hit my serviceability wall. I never even considered this...
     
  5. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Thanks for the vote of confidence but count me out.
     
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  6. Kate ML

    Kate ML Member

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    Rolf, I might be lost in terminology. Is premium the down payment or something else? The end price?
     
  7. Kate ML

    Kate ML Member

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    Dave thank you. Alan is not interested. What about yourself?

    Edit: Mistake. I saw the words 'buyers agent' in your info but missed 'KFC'

    As for your mention of Jacque from House Buyers Australia, her website says one need to have pre-approval before talking to them. I am not going to the bank, that's why I am looking for vendor finance.
     
    Last edited: 18th Jul, 2015
  8. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    I would be happy to buy you a zinger box meal but cannot assist with property searches (yet.....) :D
     
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  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Assume the normal price for a one bed in Marickville is say 500 k

    how much above that 500 k is your price

    Reason............... vendor finance needs a reason for the seller to go VF - margin is usually that reason

    ta
    rolf
     
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  10. D.T.

    D.T. Adelaide Property Manager Business Member

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    So why can't you just get a loan like everyone else?
     
  11. jaybean

    jaybean Well-Known Member

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    Presumably he's hit his borrowing limit and can't for another few years. Or maybe he just started a new contract job and hasn't got a long enough record.
     
  12. Kate ML

    Kate ML Member

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    Rolf, I will need to find out about the standard premium in this case. What's normal. Do you have an idea? I might take a few days to research (if there is available info).
     
  13. Kate ML

    Kate ML Member

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    If that's a question to me I have started working on my own and it will be a while before I can get a loan from the bank.
     
  14. Lisa Parker- Buyers Agent

    Lisa Parker- Buyers Agent Well-Known Member Business Member

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    I think you will be hard pressed to find an established and reputable BA to take on a brief like this one. Someone who is new in business and needing to get a start might consider it though. You would likely need to tell them how to pull the deal together. The other thing you could do is do a keyword search for "vendor finance" in re.com.au or reinvestar, go through gum tree or for sale by owner sites and try your luck.

    I think it's great that you are looking for out of the box ways to keep moving forward. Don't give up on thinking that way. Something will work out if you are really committed to keep moving forward.
     
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  15. jaybean

    jaybean Well-Known Member

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    I thought so, I'm a sole contractor too and know the pain.
     
  16. Be Developer

    Be Developer Property Developer Business Member

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    @Kate ML

    I can't recall a name of poster on SS forum,but he was doing VF.

    His name was Paul something?

    May be he can help you.
     
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  17. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    There are many reasons I declined.
    1. BAs expertise lies mostly in finding the right property location and feature-wise. The OP wants a BA to search for a vendor who will take on a risky borrower with no recent track record of paying back a loan. The property takes 2nd place.
    2. Most BAs are skilled negotiators in getting a price below the market value. The OP wants to pay over market value (which will be necessary to entice a vendor into such an arrangement).
    3. I've been doing this for a lot of years and in all that time I've never found a deal that had vendor finance involved (not that I was looking for it either).
    4. Usually people who ask for this type of service do not have the money to pay a BAs fees either.
    So there is a disconnect between how we operate and what the OP wants.

    I'd agree with Lisa Parker's advice (as she's outlined above) on this one.
     
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  18. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Paul Dobson.

    You're not going to find an experienced BA who will want this type of deal. Too difficult to find, too much hassle to deal with both parties, to much potential for nasty repercussions years later.

    From a finance perspective I've seen plenty of vendor finance deals both at the start and finish of the deal. Regardless of how it's structured or even the best intentions, somebody almost always gets screwed. There's a reason they're constantly in the firing line of ASIC / ACCC / Consumer affairs / Tabloid media. There's no way I'll have anything to do with this type of business.
     
  19. radson

    radson Well-Known Member

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    Yes another unloved sole contractor here too. Hoping my tax return this year will allow me to be wooed by an agreeable financial institution.
     
  20. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    many a lender inc ANZ STG Da Rock et al will look just at your most recent years figures.

    Assumes you have been trading for a couple thoughh

    ta
    rlf