Rent to own the good and bad....

[RussellWestcott]

Sounds like there is some great interest in this topic... and sounds like a good topic for a conference call audio recording.
Mark Loeffler contact me at the REIN™ office, and we can co-ordinate a time. I`ll interview you around this complex topic, and post the recording.

Perhaps we can work at getting you out to an upcoming REIN™ workshop.

For everyone else following this thread, please post the questions you would like to be answered, and we will try our best to cover them all.

Looking forward to seeing your questions...

 

[PeterKinchMortgageTeam]

QUOTE (dpsusanthan @ Jan 30 2009, 07:47 AM) Hi
I am a new immigrant to Canada with just over two months resident hear.I brought money as capital to offer a down payment and rest to be paied by a mortage loan after getting a employment in Canada.Now I have a employment and still not qualified to buy a house as the usual requirment of 12 month credit history from a Canadian bank and further,I hope to enter into residential property business later.But I would like to start early.
Can I hopefully try to get a rent to own(Leter) house at this circumstances? If possible who will be my supporters, such as Mortage brokers, real estate agents or banks? What should be my strategy? I like to share your experinces.
Thank you.
Susantha


Several insurers also offer programs for purchasers new to Canada so long as you have a valid work visa or your landed status. With verificaiton of employment and either a work visa or landed status, its actually possible to get financing as high as 90% without Canadian credit.

Each situation is different - but the new Canada programs, like the lease to own, can be a good fit for many clients.

 

[Dan_Eisenhauer]

One negative to RTO is that the property needs to appraise at or greater than the purchase price at the time of closing. That poses a problem for me right now, especially if the RTO term is fairly short... say a year, and the market value falls.

If the true value falls 10% over the year, and our calculations use a, say, 3% increase, our value at the supposed time of closing will be 13% apart. How is the tenant-buyer going to get the financing? One RTO "expert" I know builds a 9% purchase price increase into a one year lease, and that seems EXTREME to me, with the economy being in the shape it is.

One option is to continue the RTO agreement for a couple more years to increase the amount of DP, and hoping that values rise again.

How are those of you who are doing a significant number of RTOs handling this?

 

[cmerino]

Hi Mark and all the RTO experts of Ontario.

I have just been aproached by a couple that fit perfectly the RTO profile. I gave them a brief description on how a program like this works and they seem interested (ok, that was an understatement, they are thrilled because they don`t have the "credit record"...!!!) . Now I would like to get into more details, but when I was looking for the RTO agreements (one for lease and one for the option) there seems that our REIN database has the Alberta contracts only.

I would like to read Ontario agreements before getting into specifics with this couple. Can anyone help me here? Does anyone have some drafts that I can check?

Thanks in advance,

Carlos

 

[Thomas Beyer]

QUOTE (cmerino @ Jan 31 2009, 05:51 PM) ..
I would like to read Ontario agreements before getting into specifics with this couple. Can anyone help me here? Does anyone have some drafts that I can check?
take both AB contracts to a lawyer licensed in ON to adapt for a small fee ..

 

[jimbell]

Hi,
I would suggest you contact rein member Tony Peters. He developed a franchise business around this business model with 5 franchisees. 780-414-5282, Regards, Jim Bell

 

[markl]

Hi All,

Russell I will call you today.

Dan I will email you today.

Carlos - Thomas is right besides every contract is a little different so we always have our lawyer review them.

Regards,

 

[dpsusanthan]

QUOTE (thomasbeyer2000 @ Jan 30 2009, 09:41 AM) you should do a rent to own with a willing seller ! Talk to a realtor ..

or: rent for a year or 2 .. and then buy !

Hi
Thank you very much for your reply. Before starting with RTO I would like to gather some knowledge on that option.During the tenant period what are the differences from the usual tenancy in property tax and other taxes,utility payments and any increase in rent payments or any insurance requirements? All may depend on case to case but I would like to know it in general .Who are the profesionals deal in this aspect? Are they the same real estate agents or mortgage brokers?Who can support me on a selected deal on a RTO property at various aspect of it`s advantages and disadvantages?
Thanks
Susantha
from Winnipeg