- Joined
- Apr 5, 2009
- Messages
- 6
Hi,
The RTO program looks profitable than if you just buy an investment property and rent it out---considering my financial situation: I only have $5,000 saved up for downpayment (so the normal investment property route is not feasible yet---and CMHC does not want to insure me as I`m a casual).
I really want to start investing now instead of my savings not working for me.
Cost of membership (one-time): $600
monthly dues: $69 (you can cancel anytime)
How it works:
They have their list of tenants (normally with bad credit) wanting to buy homes. This is where I come in, along with other investors. You sell the house to the tenant after 2 years at a higher fixed price. If tenants decide NOT to buy at the end of the contract, I`ll pay the company $2,500 and they will get new RTO tenants in.
*downpayments are about 5-10% of purchase price
*rents are above market
*you charge $200-400 more on top of the rent
*you pay Homevestors 4% commission everytime you sell your RTO investment to your tenants
*...same RTO rules apply etc...
You still get leverage: positive monthly cashflow, use tenant`s downpayment to get another RTO property, property appreciation at the end of contract
My Question:
1) How often do opportunities go by since we kind of rely on a list of tenants who have already found a house and have been qualified by Homevestors---cashflowing and everything.
2) The only thing that stops me is I pay the same membership fee and monthly dues but I can only buy properties for up to $179,000. I know that most people that are on RTOs are ones who are tired of renting and would like to move in to bigger houses, which means houses that cost $230,000+
3) And oh---is this a better option than the regular property investment route since you see the numbers ahead of time and you don`t have to worry about advertising and there`s not much managing involved?
Anybody who`s heard of Bob Mangat`s Homevestor Rent to Own program? Please let me know any of your experiences and any possible downside with this investment.
Thanks a lot!
-C
The RTO program looks profitable than if you just buy an investment property and rent it out---considering my financial situation: I only have $5,000 saved up for downpayment (so the normal investment property route is not feasible yet---and CMHC does not want to insure me as I`m a casual).
I really want to start investing now instead of my savings not working for me.
Cost of membership (one-time): $600
monthly dues: $69 (you can cancel anytime)
How it works:
They have their list of tenants (normally with bad credit) wanting to buy homes. This is where I come in, along with other investors. You sell the house to the tenant after 2 years at a higher fixed price. If tenants decide NOT to buy at the end of the contract, I`ll pay the company $2,500 and they will get new RTO tenants in.
*downpayments are about 5-10% of purchase price
*rents are above market
*you charge $200-400 more on top of the rent
*you pay Homevestors 4% commission everytime you sell your RTO investment to your tenants
*...same RTO rules apply etc...
You still get leverage: positive monthly cashflow, use tenant`s downpayment to get another RTO property, property appreciation at the end of contract
My Question:
1) How often do opportunities go by since we kind of rely on a list of tenants who have already found a house and have been qualified by Homevestors---cashflowing and everything.
2) The only thing that stops me is I pay the same membership fee and monthly dues but I can only buy properties for up to $179,000. I know that most people that are on RTOs are ones who are tired of renting and would like to move in to bigger houses, which means houses that cost $230,000+
3) And oh---is this a better option than the regular property investment route since you see the numbers ahead of time and you don`t have to worry about advertising and there`s not much managing involved?
Anybody who`s heard of Bob Mangat`s Homevestor Rent to Own program? Please let me know any of your experiences and any possible downside with this investment.
Thanks a lot!
-C