Rent To Own Options

JoeRagona

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#1
Hey guys,

Sorry, but my mind is racing with ideas for the software. I am working on a rent to own option and would like to analyze this in REMA.

I know there is a selection for RTO in the house `type` but it would be great to have other variables built that can be adjusted so the RTO can be properly analyzed, reported (even to show the client) and then transferred to portfolio.

User variables would probably be:

Increase per year (maybe have option for variable increases over a 5 yr period)
One tine Increase
Length of term
Rent calculation
etc.

Maybe we can brainstorm on this.

Joey
 

GarthChapman

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Aug 30, 2007
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#2
Joey, can you provide us with a sample report that we can use to develop what you are looking for?

We are always happy to improve REMA for us all by adding in elements of REIN members` materials that they are willing to share with the community. That helps to make us all better at what we do.
 

JoeRagona

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Oakville, ON
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#3
QUOTE (GarthChapman @ Jun 4 2008, 01:38 AM) Joey, can you provide us with a sample report that we can use to develop what you are looking for?

We are always happy to improve REMA for us all by adding in elements of REIN members` materials that they are willing to share with the community. That helps to make us all better at what we do.


that`s where I probably am not the best to source. Bob hudson and Mark L are the experts on this and I have been following thier lead. I am not sure how much information they would want to source to you for the REMA application, but I can send you my `RTO worksheet` in excel if that will start the ball rolling. It`s really just an adaptation of the information I have received from them.

My struggle is that I don`t know where to put some of the proper numbers in REMA so the ROI is calculated correctly

Let me know.
 

GarthChapman

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#4
Joey, email what you have to garth@remacanada.ca and Iwill have a look at it. If you include your phone number I will call you to review how to enter your numbers for your RTO properties.

Thanks,
 

BobHudson

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#6
QUOTE (GarthChapman @ Jun 4 2008, 01:38 AM) Joey, can you provide us with a sample report that we can use to develop what you are looking for?

We are always happy to improve REMA for us all by adding in elements of REIN members` materials that they are willing to share with the community. That helps to make us all better at what we do.


Would like to help, but the analysis spreadsheet that we use was developed by my partner, Thomas Wong, and he considers it to be intellectual property. It is completely focused on lease option the way we do it. In case it is helpful to you, good features of our spreadsheet include:
  • a dashboard at the top of the spreadsheet that indicates go / nogo on four tests: computed debt coverage ratio for the deal (> 1.1 is green), cash investor profit (>= 20% a year is green), amount of credits available to the tenant as a percentage of eventual purchase (>= 10% is green), tenant monthly payment (affordability level = green).
  • we calculate options of 1, 2 and 3 year terms
  • we can adjust the expected appreciation rate of the property
  • LTT is calculatedentry fields include dale price, closing costs, property tax, insurance, tenant deposit, market rent, assignment fee, renovations, percent of base rent that will be used to determine the rent premium, and tenant`s preferred length of termwe can adjust the percentage split of money going in between the expert vs. the cash investor as well as the percentage split of profits out.profits out are calculated if the tenant goes through with the deal and also if they decide not to buy at the end of the term.the basic spreadsheet auto populates our proposal to the renter in another tab, an investor view in a third tab, and we have other tabs for cashflow and renovation plans.
Would like to share with you but maybe this will help...
 

JoeRagona

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#7
QUOTE (BobHudson @ Jun 4 2008, 07:03 AM) Would like to help, but the analysis spreadsheet that we use was developed by my partner, Thomas Wong, and he considers it to be intellectual property. It is completely focused on lease option the way we do it. Would like to share with you but maybe this will help...


thanks for your input Bob. I saw your blog that you invite many interested parties to look at and also noticed your seminar. Should one take that seminar, do you offer your spreadsheet software as part of the package so we can analyze the properties using your models?
 

BobHudson

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#8
QUOTE (JDRInvestments @ Jun 4 2008, 09:02 AM) thanks for your input Bob. I saw your blog that you invite many interested parties to look at and also noticed your seminar. Should one take that seminar, do you offer your spreadsheet software as part of the package so we can analyze the properties using your models?


When we have run the seminar, we have provided to the attendees all of the necessary materials - including the analysis spreadsheet, tenant lease option contract, JV agreement, etc. We also provided course exercises during the one day event to practice using the software to analyze potential deals.