Buy Without A Bank is Australia’s largest community of buyers looking for homes to buy on vendor finance.
There are literally thousands of people who can afford to buy homes, even if they are above market value, but can’t get access to bank finance.
We are looking for property investors to JV with our associates and profit instantly from positive cashflow property by selling the property using vendor finance strategies.
This is not a “wrap scheme” or “sandwich lease”, which can be risky for the buyer and seller, but a genuine and legitimate opportunity to help buyers achieve their dream of home ownership, while making a profit.
We work closely with these associates who are licensed credit providers. They have been giving buyers the power to choose their own home for 15 years!
How investing using vendor finance for positive cashflow property works
As you know, many people out there have great income but they can’t save up enough money for a 10% or 20% bank deposit.
But, as long as they have 5% deposit and can service the loan, we can help them.
We have a pool of private investors like yourself, that buy the house that the buyer chooses. We organize the paperwork to on-sell it straight away to the buyer using vendor finance. In other words you become the vendor and provide the buyer with finance as if you were the bank as well.
A Joint Venture is entered into with each investor (you) where you are the finance partner (you buy the house) and we (our associates) are the management partner (we do everything else and pay you monthly!). There are no ongoing expenses as the buyer pays for everything!
How you make money
The houses are bought at the lowest possible price and instantly marked up for the buyer by a healthy percentage. The mark-up accounts for future growth that will be realised by the buyer in the years to come.
The buyer pays their deposit upfront, which comes back to the JV partners as profit right away, and because the buyer is getting finance privately from you, the buyer’s interest rate is 2% above the interest rate of your underlying loan.
So, while you may be paying 5% on your loan, the buyer is paying us 7%. This translates to a decent monthly cashflow for the JV!
Every case will be different, but here is a guide to what you would earn, depending on the price of the house:
What are the risks
Every investment carries some risk, even a simple Buy And Hold can go sour if the market turns the wrong way (think of QLD mining towns).
With this investment strategy, your sell price is locked in from day one, so even if the market drops the buyer still has to pay the agreed price. But if the market rises, the buyer benefits from the capital growth because they still only pay the agreed price.
If the buyer defaults, meaning they do not make their repayments, their contract becomes invalid and they could potentially lose the house (just like a bank foreclosure). But in this case, you remain the owner of the property and can sell it, rent it out or start a new JV with a new vendor finance buyer.
Why Buy and Hold for a negative return, when you can Buy and Vendor Finance a positive cashflow property!
What you need to do
Firstly, ensure that you meet the requirements any property investor meets. You need to be able to buy a house at any of these price points and need to be able to secure finance from your own sources, however if needed, our associates can help with that too. The more expensive the house the more profit you will make!
The buyer will have been screened and qualified to ensure they meet the requirements and level of commitment needed to buy their home.
So, simply fill in the form below and hit the Submit button. We will connect you with our associates to work out the details of your particular JV agreement, and purchase the house on your behalf that has been chosen by the buyer.