Dead lead to dollar presentation

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Helping real estate agents and mortgage brokers to turn dead leads into dollars. With our rent-to-own strategy, we will help real estate agents to earn more $$. Crazy Thomas is a lease option specialist in Brampton, Ontario , Canada.

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Dead lead to dollar presentation

  1. 1. Turn Dead Lead into Dollars Presented by: Crazy Thomas, Lease Option Specialist
  2. 2. How are we doing? Superfantastic!
  3. 3. Who am I? <ul><li>Thomas Wong – The Crazy Lease Option Guy in Brampton </li></ul><ul><li>A real estate investor focuses on Lease Option projects in Brampton …Kitchener/Waterloo (done over 30 projects) </li></ul><ul><li>Have done fix and flip projects </li></ul><ul><li>Have rental properties </li></ul><ul><li>Have been a process/quality improvement professional in my previous life </li></ul>
  4. 4. What are we talking about? <ul><li>Dead leads (potential clients who cannot buy a house) </li></ul><ul><ul><li>Not enough credit to get a mortgage </li></ul></ul><ul><ul><li>Not enough down payment </li></ul></ul><ul><ul><li>Cannot get on title for the house purchase due to family status changes </li></ul></ul><ul><ul><li>Cannot verify income </li></ul></ul><ul><ul><ul><li>Self employed without enough reported income </li></ul></ul></ul><ul><ul><ul><li>Not enough business history </li></ul></ul></ul>DEAD LEADS
  5. 5. Do you want to make more $$? <ul><li>Who want to make more money? </li></ul><ul><li>How? </li></ul><ul><li>We are here to help </li></ul>LEASE OPTION SPECIALIST
  6. 6. What do we do? <ul><li>Use Lease Option Strategy to: </li></ul><ul><li>“ Turn Dead Leads into Dollars” </li></ul>
  7. 7. What is Rent-to-Own/ Lease Option? <ul><li>Rent-to-own your home </li></ul><ul><li>Lease with option to purchase </li></ul><ul><li>The program </li></ul><ul><ul><li>Small initial deposit (part of down payment) </li></ul></ul><ul><ul><li>Monthly payment (partly rent, partly toward down payment) </li></ul></ul><ul><ul><li>Option to purchase the house at the end of the lease term </li></ul></ul>
  8. 8. The Differences among Rent-to-Own’s <ul><li>There are no regulated way of Rent-to-Own </li></ul><ul><li>Potential variations: </li></ul><ul><ul><li>Initial deposit requirement from tenant </li></ul></ul><ul><ul><li>Amount of credit toward down payment each month </li></ul></ul><ul><ul><li>How to establish future purchase price </li></ul></ul><ul><ul><li>How to handle expenses during the term </li></ul></ul><ul><ul><li>Types of contract: </li></ul></ul><ul><ul><ul><li>Lease with option to purchase </li></ul></ul></ul><ul><ul><ul><li>Co-occupancy contract </li></ul></ul></ul>
  9. 9. Why Rent-to-Own? – Tenant <ul><li>Opportunity to buy a house under difficult circumstances: </li></ul><ul><ul><li>Not enough down payment </li></ul></ul><ul><ul><li>Bad credit or no credit history </li></ul></ul><ul><li>Lock in purchase price when saving up for the down payment </li></ul><ul><li>Pride of ownership and flexibility in upgrading the property </li></ul>
  10. 10. Why Rent-to-Own? – Landlord/Investor <ul><li>More or less worry free tenant </li></ul><ul><ul><li>Option premium </li></ul></ul><ul><ul><li>Tenant pride of ownership </li></ul></ul><ul><li>Saving in selling cost </li></ul><ul><li>Lock in profit and cash flow </li></ul><ul><li>Improve cash flow </li></ul><ul><li>Secure investment </li></ul><ul><li>Helping people and earn money (Feels Good AAh!) </li></ul>
  11. 11. Property or Tenant First <ul><li>Tenant or Property First? (Chicken or Egg) </li></ul><ul><li>It is dependent on: </li></ul><ul><ul><li>Market conditions </li></ul></ul><ul><ul><li>Investor preference </li></ul></ul><ul><ul><li>Investor financial capability </li></ul></ul>
  12. 12. Property First <ul><li>Benefits: </li></ul><ul><ul><li>Buying below market value </li></ul></ul><ul><ul><li>Time to pick and choose </li></ul></ul><ul><li>Risks: </li></ul><ul><ul><li>Potential vacancy </li></ul></ul><ul><ul><li>Not as easy to find investors to participate </li></ul></ul><ul><li>Approach: </li></ul><ul><ul><li>Find Focus area and study well </li></ul></ul><ul><ul><li>Learn to distinguish motivated sellers </li></ul></ul><ul><ul><li>Learn how to look for value in a property </li></ul></ul>
  13. 13. Tenant First <ul><li>Benefits: </li></ul><ul><ul><li>Less risk in having a vacant property </li></ul></ul><ul><ul><li>Easier to get investor to participate </li></ul></ul><ul><li>Risks: </li></ul><ul><ul><li>May not be able to buy the property at the best price </li></ul></ul><ul><ul><li>Time constrain </li></ul></ul><ul><ul><li>Tenant may change their mind at the last minutes </li></ul></ul><ul><li>Approach: </li></ul><ul><ul><li>Target market </li></ul></ul><ul><ul><li>Advertise focusing on benefit to the tenants </li></ul></ul><ul><ul><li>Good filtering system </li></ul></ul>
  14. 14. How’s it related to you? <ul><li>Your “Dead Leads” can be our potential rent-to-own clients </li></ul><ul><li>Once we qualify them, we will have a tenant first situation </li></ul><ul><li>What do you need to do? </li></ul><ul><ul><li>Simply introduce your “Dead Leads” to Bari and I </li></ul></ul><ul><ul><li>We will do the rest of the job and get them into the rent-to-own program. Our investor team will buy the property for the rent-to-own client. </li></ul></ul><ul><li>They will stay for a few years and then buy the house from the investor team </li></ul>
  15. 15. What do we need for a Rent-to-Own project to happen? <ul><li>To put a Rent-to-Own Project together, you need: </li></ul><ul><ul><li>A qualified Rent-to-Own tenant </li></ul></ul><ul><ul><li>A good property </li></ul></ul><ul><ul><li>Investor or investors to buy the property </li></ul></ul>
  16. 16. How to make money in a RTO project? <ul><li>There are 3 Key elements: </li></ul><ul><ul><li>Buy below market value (aimed at about 10% below market value) </li></ul></ul><ul><ul><li>Rental income during lease term (look for property at a good capitalization rate, market rent v.s. market value) </li></ul></ul><ul><ul><li>Property appreciation in value during lease term (look for property at good areas, target at close to 5% on average, set realistic expectation) </li></ul></ul>
  17. 17. What’s in it for you? <ul><li>For each successful referral, Bari will a share good percentage of his commission with </li></ul><ul><li>YOU! </li></ul><ul><ul><li>25% of the buying commission (for the first 4 referrals) </li></ul></ul><ul><ul><li>30% of the buying commission (from the 5 th to 9 th referrals) </li></ul></ul><ul><ul><li>35% of the buying commission (from the 10 th referrals onward) </li></ul></ul>
  18. 18. What can the tenant afford? <ul><li>Based on their Gross Family Annual Income (32% GDS) </li></ul><ul><li>Based on their current budget for monthly payment. </li></ul>$220K - $260K $2000 $260K - $300K $2300 $140K - $180K $1300 $180K - $220K $1600 Estimated Current Value of House for RTO Monthly RTO Payment
  19. 19. How to make decision on the property? <ul><li>The decisions: </li></ul><ul><ul><li>Is the project attractive to the investors </li></ul></ul><ul><ul><ul><li>Cash flow (DCR) </li></ul></ul></ul><ul><ul><ul><li>Return-on-investment (ROI) </li></ul></ul></ul><ul><ul><li>Can the tenant afford the property </li></ul></ul><ul><ul><ul><li>Save enough down payment at the end </li></ul></ul></ul><ul><ul><ul><li>Affordable monthly payment </li></ul></ul></ul><ul><ul><li>At what price should we buy this property at </li></ul></ul>
  20. 20. Sample pictures of RTO projects
  21. 21. Questions & Answers
  22. 22. We turn real estate opportunities into Happiness Inspirations

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