Vendor Finance is a Great Business Model

In the real estate business there is a buyer and there is a seller like any other market does but when in this market the buyer is known as the purchaser and the seller is known as the vendor. When we are planning to buy a property it includes a huge amount of investment and sometimes it may happen that you do not have the whole amount right away to buy the property at that time some financing is needed and that is when the vendor finance is used.

In this vendor finance the financial aid is given to the purchaser from the vendor. There are some pre determined terms and conditions which are set by the vendor and the purchaser have to sign a contract with the vendor agreeing on all the terms and conditions. In this the vendor pays the money on the behalf of the buyer and the property stays on the vendors name till the time the buyer pays the entire amount back to vendor. Vendor finance is very similar to a lay-by transaction as you make repayments, except you can live in the property as you continue to make repayments unlike a lay-by where you need to live the item at the store.