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Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
Rent to own real estate strategy - turn dead lead to $ march 2012
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Rent to own real estate strategy - turn dead lead to $ march 2012

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Thomas Wong, Lease Option Specialist of www.rtosc.com, presented the technique and strategy of rent to own. How this can help real estate agents to turn dead leads to $$?

Thomas Wong, Lease Option Specialist of www.rtosc.com, presented the technique and strategy of rent to own. How this can help real estate agents to turn dead leads to $$?

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  • 1.  Who want to make more money? How? Let me share some ideas LEASE OPTION SPECIALIST
  • 2.  Thomas Wong Crazy Thomas Your rent-to-own specialist A real estate investor with a process improvement background Have done over 40 rent-to-own projects in the last few years
  • 3.  Do you have Dead Leads? What is Rent to Own/Lease Option? How can Lease Option help you?Sunday, March 11, 2012 5
  • 4.  Dead leads (potential clients who cannot buy a house)  Not enough credit to get a mortgage  Not enough down payment  Cannot get on title for the house purchase due to family status changes  Cannot verify income ▪ Self employed without enough reported income ▪ Not enough business history
  • 5.  Use Lease Option Strategy to: “Turn Dead Leads into Dollars”
  • 6.  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
  • 7.  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
  • 8.  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
  • 9.  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!)
  • 10.  Tenant or Property First? (Chicken or Egg) It is dependent on:  Market conditions  Investor preference  Investor financial capability
  • 11.  Benefits:  Less risk in having a vacant property  Easier to get investor to participate Risks:  May not be able to buy the property at the best price  Time constrain  Tenant may change their mind at the last minutes Approach:  Target market
  • 12.  Benefits:  Buying below market value  Time to pick and choose Risks:  Potential vacancy  Not as easy to find investors to participate Approach:  Find Focus area and study well  Learn to distinguish motivated sellers  Learn how to look for value in a property
  • 13.  To put a Rent-to-Own Project together, we need:  A qualified Rent-to-Own tenant  A good property  Investor or investors to buy the property
  • 14.  Your “Dead Leads” can be our potential rent-to- own clients Once we qualify them, we will have a tenant first situation We will work with you as the buying agent and you can still earn the buying commission
  • 15.  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)
  • 16.  Focus on establishing a rapport with the client Clarify their understanding of Rent-to-Own Gather as much information about them as possible  Current family situation  Current rental situation  Family gross annual income  Type of houses that they want  How much can they afford (monthly & down) Set their expectation (realistic expectation) Listen carefully and aim at providing them the benefits that they are looking for Remember to ask for follow-up contact information and referral
  • 17. Mortgage Calculator Rent-to-Own Budget Current Value ofAnnual Family Income $70,000 property $ 333,753.91% for mortgage payment 32% Appreciation rate 5%monthly mortgage paymentamount $1,867 Term of program 3 year Future purchase price (at the end ofInterest rate 5.00% term) $386,362Amortization years 30 Target down payment $38,636 10%Allowable mortgage amount $347,725.69 Client initial deposit $10,000 monthly option% down 10% premium required $795Value of the house that can bebought at end of lease term (3years) $ 386,361.87 monthly market rent $1,800Appreciation rate of the house 5% monthly RTO bonus $200current value of house forRent-to-own $ 333,753.91 monthly RTO payment $2,395Sunday, March 11, 2012 20
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  • 23.  The decisions:  Is the project attractive to the investors ▪ Cash flow (DCR) ▪ Return-on-investment (ROI)  Can the tenant afford the property ▪ Save enough down payment at the end ▪ Affordable monthly payment  At what price should we buy this property at Dash Board Lease Term: 3-Year Investor Tenant Tenant Monthly Result Matrix DCR Profit % Down Payment Current Value 1.13 62% 10% $ 2,025 Target 1.10 60% 10% $ 2,000
  • 24.  Call us at 1-866-878-6884 ext 1 or 416-806-9568 and talk to Thomas for more information You can also email thomaswong@rogers.com Check out our iphone app http://www.app.cat/crazythomas
  • 25.  Cash investors (get 20% return per year for 1- 3 year terms) Mortgage partner (get >50% return per year) RRSP 2nd Mortgage investor (get 14% interest only return per year) Assign contract with confirmed rent-to-own tenant from Thomas Ask Thomas to help you to structure your own deals Let Thomas mentor you on doing rent-to-own deals

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