WARNING

Please read this first:

There have been a lot of changes in the Vendor Finance industry in the last 5 years. You currently have to have an ACL (Australian Credit Licence) if you would like to pursue this as a full time business.

If you currently have a Cert IV in Finance & Mortgage Broking you may want to work under my ACL- Strict Conditions Apply

You must also be a member of (FOS) Financial Ombudsman Service and also have PI (Professional Indemnity) Insurance.

I charge a nominal fee per month for 24 months after that time you can apply for your own ACL.

Real Estate Agent Legislation

Next, let me ask you a question. If you’re talking to a property seller about selling her/his property and, as a result of that conversation you make money from the sale, what are you acting as? There is only one answer and it’s, you’re acting as a real estate agent in every State and territory of Australia.

Again, if you’re the Title holder (owner) of the property you don’t need real estate agent licence coverage to sell your own property. However if you are not the owner you need to be a licensed real estate agent or an authorised real estate agent representative.

First Steps

As a new entrant to the Vendor Finance Industry I would:

  1. Realise I am creating a professional business and accept that setting up such a business will inevitably have start-up costs;
  2. Become an authorised real estate agent representative. This will require a short Certificate of Registration (NSW) type course in the State you wish to register in. In VIC the course is called the Agent Representative Course (or Program). Google will quickly locate the course for your State. Alternatively, a full NSW real estate licence is reasonably straight forward to get and can easily be converted to any other State’s licence via ‘mutual recognition’ arrangements;
  3. Get a Certificate IV in Finance & Mortgage Broking (available as a 3 day, face to face course);
  4. Become an authorised Credit Representative, i.e. a representative of an ACL holder;
  5. Get some vendor finance specific education. There are a number of providers;
  6. Become a member of the professional association that covers Vendor Financiers, i.e. the Finance Brokers Association of Australia;
  7. Get support and answers to everyday questions by frequenting the ‘Vendor Finance Professionals’ Facebook group.

You need 2 years experience as a Credit Rep, plus sufficient transactions, to get your own ACL.

However if you have your own ACL that is fine.

Any more information please go to:
http://asic.gov.au/for-finance-professionals/credit-licensees/credit-representatives/#edr

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To Your Success
Paul Zalitis
The Aussie Wrapper