In 2002 we came across Vendor Finance in residential real estate and started researching the idea. We found it had been re-introduced to the Australian marketplace around 1998 and our research led us to believe it was an excellent business model. We bought our first property in 2003 and on-sold it with Vendor Finance soon thereafter.
These people tended to be "time poor" individuals who wanted high returns from their money. Returns that are normally unheard of in the residential property market. As they were "time poor" they wanted a "turn key" opportunity, i.e. we entered in a Joint Venture, where they bought the property, then allowed us to do what we do best and share the profits along the way.
Essentially, our Joint Venture Partners:
1. Wanted their journey to wealth to be put on autopilot, i.e. enjoy passive income
2. Wanted to increase their income without increasing their workload
3. Wanted to profit from our knowledge and expertise
4. Wanted to harness the power of leverage
5. Wanted the advantage that trading properties gives, i.e. another income stream