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4 Words Guaranteed to Strike Dread Into Your Heart - “One Size Fits All”
All vendors just want to sell their property the normal way, right? The human equivalent of “One Size Fits All.”

And yet we’ve all seen an item of clothing we like, picked it up, and discovered the dreaded "One Size Fits All" tag. We feel an immediate chill. Because although something like a scarf might manage to deliver on that promise, pretty much anything else won't. Humans vary too much in height, weight, shape, bone structure, and a whole lot more.

Vendors are much the same - in that they're not all the same size. I talk a lot about doing deals with no money down, and often that involves talking to the vendor about ways to get a deal across the line with their help.

That help can happen in many different ways, and there are 6 main ways that I share regularly. My 3 favourites, though, are vendor finance, delayed settlement with early access, and doing a joint venture with the vendor. I like these the best because they provide the opportunity to pay more for the property (which makes the vendor happy) without affecting profitability (which makes me happy!), thanks to the savings in holding costs .

Let's look at those one at a time.

Vendor Finance

First up, vendor finance. In this scenario, you go to the bank, they look at all your paperwork, ask for a blood sample and take your first-born child (okay, maybe they just assess your paperwork!) and they allow you to borrow a percentage of the cost of the property. For argument's sake, we'll go with 80% of the purchase price, which on a $500k property means you still need to find $100k, plus stamp duty and legal fees. Maybe you have enough to cover the last two, but not the $100k. What do you do?

That's where vendor finance can help. Basically, the vendor accepts the 80% from your bank at settlement, and leaves the remaining 20% in the deal for you to pay out as a separate loan to them at the completion of the deal. Of course there's some legal stuff that has to happen to put that in place, but that's Vendor Finance 101.
Delayed Settlement with Early Access

For this one, you sign the usual contracts with the vendor, but instead of settling in the usual timeframe of 45-90 days, you agree to settle much later. For example, in 12 months’ time. During that 12 months, you have access to the property if needed for assorted qualified people to do "stuff" they need to do in order to get a development approval for the property.

This could be anything from simply going onsite to measure things right through to actual site works.  Or if renovation of the house is part of your strategy, you could complete the renovation before you've settled on the property, so you can get a higher valuation and as a result a bigger loan from the bank. Sweet, huh?

Joint Venture with the Vendor

Vendors nowadays can be pretty smart, and they often already know they're sitting on a gold mine. They don't have the time or knowledge to do anything about it themselves, but they sure as heck don't want to hand the property over to someone else and watch them walk away with all that lovely profit. What to do?

Enter you, the one with time and knowledge. By going into partnership with the vendor, you can help them develop the property, and at the end of the process you both walk away with extra money in your pockets. In this scenario you might never need to settle on the property at all.

"Hang on a minute," I hear you cry. "The market is hot right now. Prices are already rising. Why would a vendor bother doing some complicated deal with me, when they could just sell their property the normal way, pocket the cash and save themselves the hassle?"

And we're back to One Size Fits All

You're right - most WON'T want to do anything out of the ordinary. In fact, most vendors fall somewhere into the average height, weight and shape range, and so are perfectly happy to grab the "One Size Fits All" item, because it will fit them.

Which is why you need to find the vendors that don't fit. The ones that want to sell for a higher price than the market is asking for. The ones that want the security of a sale but don't actually want to move yet. The savvy ones who just need someone to help them develop their property.

Essentially, the ones who don’t fit

And when you become an expert at identifying and talking to the vendors who break the mold, you can really accelerate your property development journey.

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"I've set myself a personal goal of setting 1,000 people financially free by the year 2030 through my education and mentoring programs.

I'm looking forward to you joining us."
Rob Flux
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