INTERVIEW WITH TONY CORDATO
Glenn: Tony Cordato, welcome. Tell us a
little about your background.
AJC: I am a Sydney (Australia) CBD based lawyer, with a
passion for business, property and tourism law.
Glenn: You are the principal of Cordato Partners,
Lawyers, tell us about the services you offer.
AJC: We act for property investors, business owners and
tourism operators. We assist in transactional work, advisory
work and dispute resolution / litigation.
Glenn: How does Cordato Partners differ from other
AJC: We love to take on difficult assignments and solving
problems with creative but legally sound strategies. Being a
boutique firm we are nimble and swift and cost effective!
Glenn: In previous discussions you have been an
advocate of “seller financing”, could you fill us in on what
seller financing is?
AJC: Seller Finance is also known as vendor finance. Seller
finance 'greases the wheels' of property and business sales,
by providing a solution to allow the sale to go ahead where
a Bank or other financier is unable to provide the funds to
the buyer to pay the seller the price the seller requires.
Glenn: Cordato Partners also specialises in Vendor
Financing (also known as Wrap Transactions or Sale by
Instalment Contract). Could you provide a brief description
of what Vendor Financing is?
AJC: There are three main seller finance techniques that can
- The first is to wrap around
an existing loan a new loan to the purchaser, which is
documented as an Instalment Contract (also known as a
Terms Contract or Wrap Contract).
- The second is to give the
purchaser the opportunity to 'look and see' by allowing
them into the property at an above market rent and then
crediting the above market part of the rent towards the
price, which is documented as a lease with an option
(this is a rent to own or rent to buy technique).
- The third is to sell with
some carry back finance, which is documented by a loan
agreement or second mortgage (this is a deposit finance
Glenn: How Can Cordato
Partners assist investors with either Vendor Financing
Transactions or Seller Financing?
AJC: We prepare the documents for the seller financing
techniques. We are the premier legal firm in that field in
Australia, assisting in hundreds of vendor finance
transactions each year. We tie in with the Vendor Finance
Association and with Rick Otton's No Money Down Bootcamps.
Glenn: Tony, thank you for your time. We’ll keep an
eye out for your future posts on VC or Bust.
Source – Interview by Glenn Matthews for VC or Bust
website 29 October 2009