- Joined
- Mar 19, 2009
- Messages
- 156
Hi again!I would like to learn more about rent-to-own properties. Many REIN memebers have said this is a good way to do real estate investments. Interestingly, an email came to me this morning regarding a rent to own from another member so I thought this would be a good time to learn the pro`s and con`s. I have the cash to make a down payment. Of course this is just the first step of my due diligence but I thought I would ask the question to learn more about these types of investments. Thanks MKHere it is:I would like to introduce a client of ours who is a prime candidate for a lease-to-own property.
We are looking for an investor who will purchase this home and lease it back to him for 2 years, at which time he should qualify for a mortgage.
THE HOUSE: XXX has viewed the XXX Road house with our realtor. These single family homes are in a strata community, with strata fees being only $36.25/month. These homes are only 2 years old with home warranty in place. The home is 1249 sq. ft. with a full basement that is partially finished. There is a separate entrance to the walk-out basement, making it possible to suite if desired. All appliances are included. See attached photo.
OUR CLIENT:
XXX is a widower with a X year old son. He has steady income ($55,000+ annually) working for XXX. He has worked 3 years for this company, but has 9 years experience in this field.
He was divorced from his first wife and that`s when the credit tanked. He has since built up his credit from the 400`s to currently just over 600. He is working with a mortgage broker to stay on track, and may only need 18-24 months before he qualifies for a mortgage. He has a down payment ready and can afford payments of up to $1500/month.
He has viewed a 3 bedroom/2 bath home in (north of Kelowna) which he would like to purchase if we are able to find an investor.
The house XXX has looked at is in a strata development on XXX Road. It is only 2 years old and strata fees are $36.25/month. It has a double garage (which appeals to him as he loves to do projects) and says the area feels like a secure place for his young son. It would be great if we could get them into their new home before the new school year begins.
Overview with 10% down:
Length of Term
2 years
Home Purchase Price
$335,000
Total Investment Required
$37,200
Monthly Cash Flow
$194
Total Net Profit
$23,010
RETURN ON INVESTMENT (ANNUAL): 31%
For a detailed Financial Analysis of this opportunity, please contact XXX
We are looking for an investor who will purchase this home and lease it back to him for 2 years, at which time he should qualify for a mortgage.
THE HOUSE: XXX has viewed the XXX Road house with our realtor. These single family homes are in a strata community, with strata fees being only $36.25/month. These homes are only 2 years old with home warranty in place. The home is 1249 sq. ft. with a full basement that is partially finished. There is a separate entrance to the walk-out basement, making it possible to suite if desired. All appliances are included. See attached photo.
OUR CLIENT:
XXX is a widower with a X year old son. He has steady income ($55,000+ annually) working for XXX. He has worked 3 years for this company, but has 9 years experience in this field.
He was divorced from his first wife and that`s when the credit tanked. He has since built up his credit from the 400`s to currently just over 600. He is working with a mortgage broker to stay on track, and may only need 18-24 months before he qualifies for a mortgage. He has a down payment ready and can afford payments of up to $1500/month.
He has viewed a 3 bedroom/2 bath home in (north of Kelowna) which he would like to purchase if we are able to find an investor.
The house XXX has looked at is in a strata development on XXX Road. It is only 2 years old and strata fees are $36.25/month. It has a double garage (which appeals to him as he loves to do projects) and says the area feels like a secure place for his young son. It would be great if we could get them into their new home before the new school year begins.
Overview with 10% down:
Length of Term
2 years
Home Purchase Price
$335,000
Total Investment Required
$37,200
Monthly Cash Flow
$194
Total Net Profit
$23,010
RETURN ON INVESTMENT (ANNUAL): 31%
For a detailed Financial Analysis of this opportunity, please contact XXX