Vendor finance for commercial property (caveat emptor)

When buying commercial property your vendor might be your best (short term) lender option however entering a vendor finance agreement is not without key risks;

A buyers ability to bridge an equity gap between the vendor loan and a market place commercial loan.

Unpreparedness for rigorous lender credit assessment

Heavy penalties for delayed settlement which could come 5 years after buying the property

My advice if you have used short or long term vendor finance to purchase commercial property is to plan well ahead and get the 'house in order' well ahead of settlement date.

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