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Crazy Thomas Rent-to-own training video #1 - Basics of RTO
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Crazy Thomas, lease option specialist, rent-to-own training series. Training #1 will cover the basics of rent-to-own your house. It covers information for both a rent-to-own client and a rent-to-own ...

Crazy Thomas, lease option specialist, rent-to-own training series. Training #1 will cover the basics of rent-to-own your house. It covers information for both a rent-to-own client and a rent-to-own investor.

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Crazy Thomas Rent-to-own training video #1 - Basics of RTO Presentation Transcript

  • 1. Sieze the opportunity Make the World your Osyster FREE Rent-to-own Training #1 The Basics of Lease Option CRAZY THOMAS Lease Option Specialist
  • 2. Who am I?
    • Crazy Thomas
    • Thomas Wong
    • Your rent-to-own specialist
    • A real estate investor with a process improvement background
    • Have done over 30 rent-to-own projects in the last few years
  • 3. What is Rent-to-Own/ Lease Option?
    • Rent-to-own your home
    • Lease with option to purchase
    • The program
      • Small initial deposit (part of down payment)
      • Monthly payment (partly rent, partly toward down payment)
      • Option to purchase the house at the end of the lease term
  • 4. The Differences among Rent-to-Own’s
    • There are no regulated way of Rent-to-Own
    • Potential variations:
      • Initial deposit requirement from tenant
      • Amount of credit toward down payment each month
      • How to establish future purchase price
      • How to handle expenses during the term
      • Types of contract:
        • Lease with option to purchase
        • Co-occupancy contract
  • 5. Why Rent-to-Own? – Tenant
    • Opportunity to buy a house under difficult circumstances:
      • Not enough down payment
      • Bad credit or no credit history
    • Lock in purchase price when saving up for the down payment
    • Pride of ownership and flexibility in upgrading the property
  • 6. Why Rent-to-Own? – Landlord/Investor
    • More or less worry free tenant
      • Option premium
      • Tenant pride of ownership
    • Saving in selling cost
    • Lock in profit and cash flow
    • Improve cash flow
    • Secure investment
    • Helping people and earn money (Feels Good AAh!)
  • 7. What are the risks with Rent-to-Own?
    • Tenant moves out during lease term
      • Non-refundable option premium
      • Contingency funding in place
      • Property at good location and value
    • Market condition changes – drop in value/not appreciate enough
      • Buy below market value
      • Work with tenant to facilitate purchase/extend lease term
      • Non-refundable option premium
  • 8. Property or Tenant First
    • Tenant or Property First? (Chicken or Egg)
    • It is dependent on:
      • Market conditions
      • Investor preference
      • Investor financial capability
  • 9. What do you need for a Rent-to-Own project?
    • To put a Rent-to-Own Project together, you need:
      • A qualified Rent-to-Own tenant
      • A good property
      • Investor or investors to buy the property
  • 10. How to make money in a RTO project?
    • There are 3 Key elements:
      • Buy below market value (aimed at about 10% below market value)
      • Rental income during lease term (look for property at a good capitalization rate, market rent v.s. market value)
      • Property appreciation in value during lease term (look for property at good areas, target at close to 5% on average, set realistic expectation)
  • 11. The “Bag of Tricks” of Crazy Thomas
    • We have many tools in our “Bag of Tricks” from finding tenant, finding investor to pull it all together.
    • We will cover them in the videos that you will receive next time.