You may have heard about vendor financing (also called seller financing). In today’s market, properties are taking longer and longer to sell. This isn’t because no one likes your house. It’s mainly due to the difficulties potential buyers are having in obtaining finance from banks. Vendor financing however, overcomes this problem entirely and is becoming the preferred solution for vendors struggling to move their homes in this difficult economic climate.
Selling your home via vendor finance does not mean you have to accept a lower price for your property; on the contrary, because vendors can offer flexible payment terms they can be firmer on their asking price. This can be a big bonus for you if you’re selling your place, as you also don’t need a real estate agent so you lose nothing in commissions from your sale.
Vendor finance arrangements take a number of forms; the two most commonly used are installment contracts and lease options (also called rent to buy contracts). Both involve the vendor being paid directly by the buyer, under slightly different agreements.
Vendor Finance | Positive Cash Flow | Negative Gearing 
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