Bringing buyer & seller together using the 'Uber' model

[ottg]

When you want to purchase a property but don't want to use your own money to develop you can use a concept called vendor financing. There are also other reasons why you would prefer such a financing model.

Vendor Finance (also known as ‘seller finance’) is offered by a seller (a vendor) to finance the sale of real estate to a buyer (a purchaser).

Find a willing and motivated seller. This may be a vendor with a property already in the market for some time.

• Has an urgency and greed to maximize capital gain
• Determine if he has time and/or knowledge available to maximize gain
• Determine if vendor is interested in obtaining vendor financing

The idea is to sweeten the deal where you pay the vendor more than the asking price, plus % of profits but only once new construction has been completed. You use the vendor's property to extract equity, demolish, subdivide and construct 4 or 6 units. Obviously you will need back-to-back contracts to cover the vendor and you the developer.

Trust is the single most important thing to make the deal work. Second thing is once you find a potential vendor the real estate agents/other developers want part of the action (too long to explain) which spoils the deal. The Úber' concept can help here:

Getting to this post : http://www.saaustralia.org/index.php/topic/44991-interest-free-mortgagescoming-soon/#entry408159

The Uber system brings buyers & sellers together while allowing a rating system to build trust. Build and I will use it!!

Your thoughts??

[SurferMan]

Hmm ottg,

Gimme a bit of time to chew the angles on your idea. Will give you straight up response shortly, just taking the kids on a homeschooling outing.

[SurferMan]

Okay, had another read, this concept is already out there and mature, but your rating system is unique as far as I can see. There is an informal one in the market, but it's subliminal. i reckon if you can build such an app, it would bode well for both buyers and sellers.

What are your functional and technical specs for the app?

[ottg]

Surferman, Happy to discuss with anyone over a coffee.

Perhaps better to first investigate what is available on the market , the maturity of the service and avoid reinventing the wheel. Am only interested in getting the initial introduction to a willing and motivated prospective vendor. It's worth a premie at a discount - similar to a finder’s fee. This is where the apps can play a role.

However the rest is done in the brick and mortar world and depends on dealmaking & business relationship that may eventuate into a ‘joint venture’. Can only be done successfully in person and no apps will help. An alternative may have been using a buyer’s agent but normally its outside their scope of services.

What is the link of the application that already exist??