Vendor Take-Back Mortgages
Sure, I will buy your property. Can you lend me the money!?
Analyzing vendor-take-backs as part of the creative financing process
A vendor-take-back mortgage is just one of the many creative ways in which investors can acquire multiple investment properties. With a VTB, the seller basically lends the buyer a percentage of the purchase price and registers a secured mortgage against the property in the name of the seller. The seller, in essence, becomes the lender.
VTB’s provide unique benefits to both buyer and seller. The buyers are able to purchase cash-flow producing investment properties with little to no money down and the sellers are able to liquidate a large percentage of their investment while maintaining a smaller amount as a secured loan, thus earning interest.
If you ever have any questions about vendor take back mortgages, any at all, please don’t be shy. Give me a call or send me a text or email. I am always willing to chat real estate over a cold beer or strong coffee.