Crazy Thomas Rent-to-own training video #3 - Pulling IT Together
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Crazy Thomas Rent-to-own training video #3 - Pulling IT Together

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Crazy Thomas, lease option specialist, rent-to-own training series. Training #3 will cover the steps and tricks to pull a rent-to-own project together.

Crazy Thomas, lease option specialist, rent-to-own training series. Training #3 will cover the steps and tricks to pull a rent-to-own project together.

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Crazy Thomas Rent-to-own training video #3 - Pulling IT Together Crazy Thomas Rent-to-own training video #3 - Pulling IT Together Presentation Transcript

  • Sieze the opportunity Make the World your Oyster FREE Rent-to-own Training #3 Pulling it together CRAZY THOMAS Lease Option Specialist
  • 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
  • What did we cover so far?
    • In our first video, we covered
      • The basics of RTO
      • What is rent-to-own/Lease Option?
      • Why RTO is good for tenant and investor?
      • What are the risks of RTO?
      • The basics of making money with RTO projects
  • What did we cover so far?
    • In our second video, we covered
      • The marketing of your RTO business
        • For RTO clients
        • For investors
  • The Rent-to-Own Process
  • 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
  • The “Bag of Tricks” of Crazy Thomas
    • The key steps to pull a rent-to-own project together
      • Qualify the tenant
      • Find the right property for the tenant
      • Decide on the property
      • Negotiate the purchase
      • Structure the deal
      • Communicate with investors
  • Rent-to-own Client Qualification Checklist
  • Process for finding a house for RTO client
    • 3 steps process to find property
      • Meet with real estate agent
        • Schedule a showing (5-6 prop.) Observe what is important to tenant!!
      • Search again to meet their criteria and our criteria.
        • Find motivated sellers.
        • Go and see properties with realtor without tenant.
      • Present 3-4 selected properties to tenant
        • Start negotiation on the chosen property
  • Analysis of the property
    • Input (about the property):
      • Market value of the property
      • Market rent of the property
      • Any renovation cost
      • Property tax of the property
      • 5 year average appreciation rate
      • Any other on-going expenses (condo fee …)
    • Input required (about the investment)
      • Down payment, interest rate, amortization years
    • Input (about the tenant)
      • Monthly payment target, initial deposit availability
  • Feasibility Analysis Spreadsheet
  • What can help to increase profit (ROI)
    • Lower purchase price
    • Higher after repair value
    • Higher rental portion of monthly payment
    • Higher appreciation rate
    • Lower tax and insurance cost
    • Add a RRSP 2 nd mortgage – 14% (reduce cash investment from cash investors v.s. 20%ROI)
  • Crazy Thomas’ Way to Structure the Joint Venture PROFIT 35% > 50% ROI/YR 65% = 20% ROI/YR Partner # 1: (5% of $$) Thomas (Project Manager) Bob (Mortgage partner) Partner # 2: (95% of $$) Cash Investors 80% Mortgage 20% Down Payment ($$)
  • The “Bag of Tricks” of Crazy Thomas
    • We still have many more tools in our “Bag of Tricks” like how to firm up the deal and run the project to ensure that we are making money at the end.
    • We will cover them in the videos that you will receive next time.