This document outlines an investment opportunity in rent-to-own properties that claims to provide annual returns of 25% or more. It describes the business model of renting a property to a tenant with an agreement to sell it to them after 2-3 years at a pre-agreed increased price. It notes various risks involved and assumptions required to achieve the targeted returns, such as tenants following through on purchase agreements or not requiring unexpected major repairs. Instructions are provided on investment amounts, fees, and legal agreements required.

1. Investing Information

2. Invest in a Rent-To-Own property and enjoy
about 25% ROI per year
 Non compounded, starting from your mortgage date
 Based on typical cash outlay and 80% LTV
 Assumes buyout from tenant after 2-3 year lease,
at pre-agreed price
 Assumes that warrantees cover most physical problems
 Assumes no unexpected major costs
 Does not include your costs for gas, meals, accounting, etc.
 Your money is NOT pooled – agreements are solely between
you and your tenant(s)
 Your profits are subject to Capital Gains tax

3. Through Multiple Points Of Leverage:
1) 20% down payment controls 100% of house (normal real estate leverage)
2) You sell the house to your tenant at 3%-5% annual appreciation
3) Monthly cash flow and purchase credits from tenant
4) Decrease in mortgage balance over time, paid for by tenant
Dozens of Canadian companies and individuals regularly do deals that pay
investors 15% to 35%! But the RTO business model is not yet a widely-known
concept, and some real estate investments require “accredited investor” status
and are therefore not widely known.
And of course, every single deal/property involves risk, and different kinds of
real estate investment structures involve different kinds of risk. RTO Partners
strives to create the highest chance of a high return. In fact our proposals are
designed to deliver a profit even if the tenants do not buy the house .

4. You are investing in Canada, not foreclosures in the USA or
resort developments on another continent. These are
investment properties you can visit without getting on a
plane.
You are helping Canadians to become home owners.
These are not just people looking for the next place to keep
their stuff - these are “Homeowners In Training” who have
chosen to pay a down payment up front, PLUS additional
down payment credits every month, knowing that they have
to buy the house from you in 2-3 years or lose that money.
We REQUIRE our investors to have a “tenant-first” attitude.

5. Type #1 is the most common – a family does not
qualify for a mortgage but they want to move
into a permanent home now, with the plan of
buying at the end of their lease.
Type #2 is “Rent-Back Financing” or “RTO
Financing” where the client already owns the
home – they need to sell it, stay in it as a rent-to-
own, and use the equity to recover from
debt, divorce, health problem etc. They also
use the equity to pay a larger-than-normal
down payment and in some cases, prepay 6 to
18 months of their rent.

6. Usually a 20% down payment to buy the house. Your
own credit rating etc. will determine your down
payment and interest rate. All costs are covered in
the spreadsheets we provide investors included in
every tenant proposal.
Investor Participation Fee (or “Tenant Locator Fee”) is
generally 50% - 70% of the initial down payment,
with the goal of delivering you at least 25% per
year non-compounded ROI, assuming successful
completion. This fee is payable to RTO Partners
within 2 weeks after your receipt of down payment.
HST applies to this fee.

7.  Lease Agreement - Your tenant pays you the
first month’s rent, plus down payment, prior
to moving in. Details of the lease are
negotiated between you and your tenant.
 Purchase Option Agreement - The tenant is
also paying you $200 to $500 (included in
the rent) every month (depending on house
price, amount of up-front down payment,
end-of-lease down payment target, etc.).

8.  Tenants come through advertising, mortgage
brokers, realtors, model homes, referrals, web
search traffic etc.
 We prioritize tenants based on income, credit score,
job duration, personality, etc. Less than 10% of
candidates are approved by our screening process.
 The highest-qualified tenants are the first ones that
we match with investors.

9. Based on a $200,000 home:
You make a $40,000 (20%) down payment and get a mortgage of
$160,000 when you take ownership.
The pre-agreed appreciation of the home will usually be 3% to 5%
per year.
Based on a 4% appreciation, these are the tenant’s buyout prices …
First year purchase price (day 1 to day 365) is $208,000.00.
Second year purchase price is $216,320.00.
Third year purchase price is $224,972.80.

10.  You can simplify things by hiring a property
management company to help you collect rent,
deal with any physical problems and so on. You
decide how hands-on or hands-off you wish to
be. Can be as cheap as $50 a month.
 The tenant is responsible for lawn care, snow
removal and general maintenance (unless
alternative arrangements have been agreed to in
the lease).

11.  You will decide in the lease what your
responsibility will be for repairs. Your tenant
(the Future Home Owner) is responsible for
everything else. There is generally a deductible
the tenant or investor pays per month or per
incident.
 Tenant is responsible for repairs to any
damage they cause that’s not covered by
warranty.
 Investor and tenant may privately agree to
different terms and include them in the lease.

12. 3 Things Can Happen:
1) Tenant buys house – privately, as per the Purchase Option
agreement – you pay no real estate commissions.
2) Tenant requests lease extension - we encourage investors to
offer this option to good tenants. We discourage evictions
when they’re not absolutely necessary.
3) Tenant fails to qualify, and moves out (due to divorce,
unemployment, death, forced to relocate, credit not fixed,
etc.) - you keep all purchase credits, which outweigh the
time and cost of finding a new tenant or selling the home.
(Outcomes 2 and 3 will change your ROI. It is still possible
to get an annual ROI of 10% or higher even if the
tenant does NOT purchase the house. We have the
spreadsheets to prove it.)

13.  your own advisors – lawyer, realtor, mortgage agent
 laws regarding real estate, mortgages, leasing, etc.
 industry-standard practices and paperwork
 if needed, tenant’s credit repair and mortgage
eligibility steps and goals will be managed by
On Your Side Debt Relief ™
 your ownership of real property

14. We are assuming you will have 80% financing – we
cannot rewrite deal proposals for lower LTV, as this
would be punishing the tenant in order to help you
achieve your ROI.
There is room for negotiation, within reason,
regarding down payment, rent, deductible terms for
damages, etc. – but we do not tolerate investors who
attempt to rewrite the normal, basic industry rules or
dictate how we do business.

15. The terms of this disclaimer must be accepted to access and use RTO Partners documents or join our email
updates list or use any RTO Partners web site content or standalone document. This document is an interest
seeking document only. No information, forward looking statements, or estimations represent any final
determination. This document is for general information purposes only. While the information presented in this
investor interest seeking document has been researched and thought to be reasonable, in general, real estate
investment is highly speculative, real estate values can go up or down, and thus RTO Partners AND/OR ITS
AGENTS CANNOT AND DO NOT GUARANTEE ANY RATE OF RETURN OR INVESTED AMOUNT OR INVESTMENT
TIMELINE. User of this document acknowledges and agrees that RTO Partners and/or its agents are not in the
business of real estate consulting and are not classified, or presenting themselves, as real estate experts,
professionals, or developers but preliminary information providers. The Investor further acknowledges and
agrees that RTO Partners does not assume and hereby disclaims any liability to any party for any loss or damage
caused by the use of the information contained herein or errors or omissions in the information contained in this
investor interest seeking document to make any investment decision in the venture referred to herein, whether
such errors or omissions result from negligence, accident or any other cause. Note, however, that investor
participation is secured by real estate. Investors are required to conduct their own investigations, analysis, due
diligence, draw their own conclusions, and make their own decisions. Any areas concerning taxes or specific
legal or technical situations should be referred to lawyers, accountants, financial specialists, realtors, or other
professionals who are licensed, qualified or authorized to render such advice. IN NO EVENT SHALL RTO Partners
AND/OR ITS AGENTS BE LIABLE TO ANY PARTY FOR DIRECT, INDIRECT, SPECIAL, INCIDENTAL, OR
CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER ARISING OUT OF THE USE OF THE INFORMATION
CONTAINED HEREIN EVEN IF RTO Partners AND/OR ITS AGENTS HAVE BEEN ADVISED OF POSSIBILITY OF SUCH
DAMAGE. RTO Partners AND/OR ITS AGENTS SPECIFICALLY DISCLAIM ANY GUARANTEES, INCLUDING, BUT NOT
LIMITED TO, STATED OR IMPLIED POTENTIAL PROFITS OR RATES OF RETURN OR INVESTMENT TIMELINES.

16. Investor Contact Information
FutureOwner.ca
(877) 813 6171
investors@futureowner.ca