“Vender Take Back (VTB) Financing” is also called “Seller Financing”.  This is when the seller gives you a mortgage to buy the property.

Now why would a seller do this?  One of the reasons is that the seller can sell the property quickly by assisting you with the financing.  Usually a VTB mortgage has higher rate so that the seller can make money passively.  Why would a buyer want a VTB mortgage?  The buyer can use less down payment and increase the return on their investment by leveraging the seller’s money.  For example, instead of buying a rental property with 20% down, maybe you’ll just need 10% and the seller gives you the other 10%.  That way, you save yourself some money upfront!  Imagine you can sell this property after a minor renovation … that means you made a greater profit since you had to use less of your own money!

CE Properties can provide vendor financing on some of our projects.  If you like a particular investment project, feel free to ask us how we can provide you with our VTB financing.

If you are interested in learning more about this type of real estate investing, feel free to contact us and we can provide a one-on-one consultation with you to go through the process of investing in vendor take back mortgages and together, let’s start making money like the bank!