What is Vendor Finance?

Vendor Finance Explained 

Farm buyers and sellers have very clear-cut motivations - buyers wish to offload their property for an appropriate price, while sellers are willing to part with their money to acquire the same property. This means that when a buyer finds it difficult to get financing to purchase a farm, it is frustrating for all parties involved. 

This is where vendor finance comes in. 

Vendor finance describes an arrangement in which the farm buyer pays a deposit to the seller to acquire the property, and the seller lends the rest of the money, which the purchaser agrees to pay back at an agreed rate. This enables the buyer to access the land, and provides the exiting farmer to continue to receive a consistent return.

Vendor finance in practice

Dan is an aspiring farmer who has been working on John and Debbie’s berry farm for the past three years. John and Debbie have no children that want to take on the farm and would like Dan to purchase the farm from them.

They negotiate a vendor financing arrangement where Dan purchases the farm with a ten per cent deposit and pays 5.5 per cent interest on the remaining balance. Dan has plans for niche market opportunities and feels that he can meet these interest costs.

However, John and Debbie would like to receive all proceeds from the sale in ten years’ time to fund their retirement. The agreement includes terms that Dan needs to find bank or other finance by that time, or sell the property and pay his debt to John and Debbie.

Advantages of vendor finance

  • Allows new entrants to purchase land when bank debt is unavailable in whole or in part
  • Provides exiting farmers with a return on their asset until they sell
  • Purchaser can invest confidently in land improvements or diversification
  • The spread of cash flow can be advantageous to the exiting farmers in terms of tax and retirement planning
  • The landowner retains title to the land until fully paid, ensuring asset protection
  • Most solicitors are familiar with vendor finance

Disadvantages of vendor finance

  • The interest rate paid on the loan will generally be more expensive than bank debt
  • Vendors may not want their asset tied up in lending agreements for a long period

For further information: 

If you want to learn more about vendor finance or are looking for other tips and tricks to help you uncover farm ownership opportunities, head to the Cultivate Farms website or email Sam at sam@cultivatefarms.com.

Author: Sam Marwood is co-founder of Cultivate Farms, a new social enterprise that matches investors and retiring farmers with new farmers to own and operate the farm together. 


206 Wharf Rd, Johns River, NSW
Rural Resid.15.323 ACRES 30 mins Port MacQuarie & Taree - Income Potential 2km off Pacific Hwy

Phone enquiries - please quote property ID 03320.

LOCATION , LOCATION - IRREPLACEABLE !!!
Updated 24 August, 2021

< 1km of fencing still required to be erected at the back of the property.

WITHHELD FROM VIEWING DUE TO UNSTABLE HEALTH RESTRICTIONS CONTINUALLY FLUCTUATING.

CURRENT ERRATIC WEATHER CONDITIONS ARE ALSO IMPACTING PREPARATION FOR VIEWING.

AS WE HAVE RECENTLY ADVANCED TO BORDER SECURITY MEASURES AND NOW ENTIRE N.S.W. IN LOCKDOWN, IT IS NOT PROVIDING THE WINDOW OF OPPORTUNITY FOR PREPARING OR VIEWING THIS PROPERTY. OR SOURCING ALTERNATIVE ACCOMMODATION ELSEWHERE FOR OWNER.

FOR PREVIOUS INTERESTED PARTIES PLEASE NOTE PRICE INFORMATION !!!

This little treasure is "one to be done up" and requires building & land maintenance, T.L.C. and being sold as is, overgrown vegetation and weeds included.

PLEASE NOTE THAT THE PHOTOS SHOWN ARE 6+ YEARS OLD - WE HAVE ALL AGED SINCE OUR FORMER GLORY - This, however, is not insurmountable. !!

Owner may consider Joint Venture Development Partnership
WITH EXPERIENCED AND QUALIFIED PROPERTY DEVELOPER.

EXCELLENT property for developing income horse/motorbike rider /4-wheel drive, niche agricultural venture OR transport and other type of business but is currently unkempt due to ongoing ill health issues and is priced accordingly and firmly tied in to escalating market values. As would be expected, there are repairs and some maintenance to be done.

This property is Torrens Title, Rural Residential and has had no history of current flooding also including 1963 major floods in Laurieton area.

The eastern boundary has a 350m x 1.5m wide x 1m deep gully which could be converted to dams for individual paddock use.

• Approximately 13.5 cleared acres (balance bush which can be cleared) flat land, improved grazing with 1 spring & 1 dam.

• 1 comfortable 4 b/r house Hardiplank (NO ASBESTOS) requiring maintenance with enclosed sunroom in excellent “no through road” location - has solar h.w.s. not working (needs new tank). Has normal brand new electric h.w.s , 8,000 gallon concrete water tank and newly updated NBN satellite broadband. Another satellite dish plus cabling still attached can be used for T.V. or other purposes.

House needing some repairs.

• Separate 1 x 1 b/r fully self-contained student accommodation (requires some major repairs) with own septic and separate phone line. Requires new water tank etc.

• large shed 18.6m x 6.6 m plus small shed 3m x 3m both with concrete floors needing some repairs.

• 82m x 25m gravel based and grass surfaced horse work area requiring regrowth cleanup. Is situated in good cool afternoon shady location.

• 2 forest boundaries & 1 neighbouring bush block boundary

. Approximately 600m fencing in rear section of property will need to be erected to complete new boundary fencing.

• 30 minutes either direction to Port MacQuarie & Taree, 20 minutes to Wauchope & 45 minutes to Forster • 2km to new Pacific Highway & popular Johns River Markets

• 2.5km to Shop, Mechanic and "water hole"

• 2.75km to Johns River Primary School bus stop for other primary & high schools

• 2.5km to bus stop for high schools & other primary

• 1km to launch boat in Stewart River on same (home) road & travel to the ever popular town of Laurieton and do your shopping !

• 15 minutes to Laurieton, Coles & Woolworths, specialty shops, Fish Co-op, Chemists, Doctors, Cinema, Banks & multitude of other trades & service providers. Easy travel to city shopping Port MacQuarie & Taree. Midway to Airports both in Port MacQuarie and Taree.

A great balance in location - you can be alone without isolation

N.B. This could be a 'show-case' property with applied effort and t.l.c. The house is comfortable but needing attention & paddocks need some mowing and internal electric fence maintenance / erection to be more secure.

PLEASE NOTE !
---------------------
Preference of sale is for cash buyer or individuals forming Joint Venture partnership with owner desiring to work and live on property and develop to full potential and business opportunity. .

Arrangements for viewing will be discussed after eventual authority decisions on advancing "normal" life once again.

20% deposit would be required for Contract of Sale !! Expressions of Interest welcome for Joint Venture capitalism.

Thank you

Updated 24 August, 2021

DISCLAIMER While proudly assisting home owners to sell since 1999, No Agent Property takes every care to verify the accuracy of the details in this advertisement, but the correctness cannot be guaranteed.

172 One Tree Hill Road, Golden Grove, SA
Lifestyle Location & Landbank

Phone enquiries - please quote property ID 20003.

27/8/21

UPDATE

The Council has now voted to approve change of Land use to Residential, and the Government is supporting. The project has now moved to re-zoning!!

We want to retire.

UPDATE 30/9/21

Ok, let's try another way. (investment of the Year)

1. Pay $750,000. We freehold. We give You Shares in the Company that owns the Property, to the value of $750,000. PLUS...we give you UP FRONT shares to the value of $500,000 Bonus. (payable when the Bull Dozers come. So you are secured immediately and ahead of time, and will receive $1,250,000 payout.

You will also receive the $35,000 a Year flash Home (Power Bill last quarter $7.50) No Sewerage, No Water Rates.

2. Pay $1,800,000. We freehold and you get shares valued at $2,800,000. Plus Home.

(Conditions on variables apply regarding Developer announcements of what Tranche of 4 Tranches, we will be in) however the returns ratio remains the same. At this stage it looks like 5 Years plus.

Goodbye Covid. Get a Pony for the Kids', no lock downs, get a Trail Bike, tend the Garden, Veggies, Chooks, Pat the Koalas, Sing with the Kookaburras, walk the Trails, think you are living in the Barossa and yet and only 2 Minutes from the Coffee Latte :) Mum will be ever so happy :)

Contact for more details.

DISCLAIMER While proudly assisting home owners to sell since 1999, No Agent Property takes every care to verify the accuracy of the details in this advertisement, but the correctness cannot be guaranteed.

5 Verdelho Drive, Moffatdale, QLD
Vendor Financing Opportunity - Buy 1 or Both!

Phone enquiries - please quote property ID 17494.

The owners are serious about selling both blocks and will consider all reasonable offers. $65,000 per block.

Vendor financing is available, a perfect low cost opportunity for all buyers. With the growing need for rentals in the area, investors can build and rent almost immediately.

A total of 1.36 hectares on offer.
Lot 115 = 5,666m2
Lot 114 = 7,909m2. One of the largest, and most affordable blocks offered in Moffatdale

Located within walking distance to Lake Barambah, home of great fishing, water-skiing, boating, and water sports facilities. Moffatdale itself is located only 20km from the Murgon CBD and some of the finest wineries in the South Burnett region.


Power and Phone line are already connected and ready to go. Secure this piece of land before it’s too late.

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