- Joined
- Sep 10, 2007
- Messages
- 121
I would like to share my rent to own experience since taking the Rapid Cash Program in Toronto in February.
First of all I want to say thanks to everyone involved, as I learned a lot and it was well worth the time and financial investment.
Since coming back to Edmonton I was very enthusiastic about trying the rent to own strategy. I have experience in real estate as I already own long term buy and holds and I have done some flips. What appealed to me about the rent to own strategy was that everyone wins - the investor makes a good profit, the tenant buyer gets their dream home and I get a good return on my time and effort.
The deals I've done so far:
1. House in Stony Plain purchase price 442,000 - buyout in a year is 455,600. They had an offer on this house when I came into the picture but were turned down by the bank because they had another house that needed to be sold. They put 45,000 down.
As it turned out they went to the credit union after I came into the picture and got qualified with them. We already had our deal so they bought me out at 455,600 a week later. I had an investor on this one so we split the profit.
2. House in Sherwood Park purchase price 480,000 buyout in 3 years 545,000. They put 3% down. They have credit issues that need to be worked on.
3. House in Sherwood Park purchase price 415,500 buyout in a year 427,965. He put 5% down. He just needs to sell a house and should be able to qualify himself.
4. House in Grande Prairie - another situation where they were approved by bank buy declined by CMHC. Should only need a year to qualify themselves. Purchase price 295,000 buyout 308,275. They are also putting 5% down.
5. Townhouse in Dunce just putting in an offer tonight. 190,000 purchase price. The tenant buyer is already approved. I've been working with her for awhile. She is moving from the State to be closer to her family and is putting 4% down. Will need maybe 2 years to qualify herself. I may do this one myself as the amount to put down is quite small - 30,000.
I've used investors on 4 of these. The return to them is at least 20% per year making it a much easier sell, as the ROI is set from the beginning and it's a shorter investment period.
It's been a lot of work but WOW so rewarding when you are able to help someone out that thought they hit the wall.
Thanks
Brenda
First of all I want to say thanks to everyone involved, as I learned a lot and it was well worth the time and financial investment.
Since coming back to Edmonton I was very enthusiastic about trying the rent to own strategy. I have experience in real estate as I already own long term buy and holds and I have done some flips. What appealed to me about the rent to own strategy was that everyone wins - the investor makes a good profit, the tenant buyer gets their dream home and I get a good return on my time and effort.
The deals I've done so far:
1. House in Stony Plain purchase price 442,000 - buyout in a year is 455,600. They had an offer on this house when I came into the picture but were turned down by the bank because they had another house that needed to be sold. They put 45,000 down.
As it turned out they went to the credit union after I came into the picture and got qualified with them. We already had our deal so they bought me out at 455,600 a week later. I had an investor on this one so we split the profit.
2. House in Sherwood Park purchase price 480,000 buyout in 3 years 545,000. They put 3% down. They have credit issues that need to be worked on.
3. House in Sherwood Park purchase price 415,500 buyout in a year 427,965. He put 5% down. He just needs to sell a house and should be able to qualify himself.
4. House in Grande Prairie - another situation where they were approved by bank buy declined by CMHC. Should only need a year to qualify themselves. Purchase price 295,000 buyout 308,275. They are also putting 5% down.
5. Townhouse in Dunce just putting in an offer tonight. 190,000 purchase price. The tenant buyer is already approved. I've been working with her for awhile. She is moving from the State to be closer to her family and is putting 4% down. Will need maybe 2 years to qualify herself. I may do this one myself as the amount to put down is quite small - 30,000.
I've used investors on 4 of these. The return to them is at least 20% per year making it a much easier sell, as the ROI is set from the beginning and it's a shorter investment period.
It's been a lot of work but WOW so rewarding when you are able to help someone out that thought they hit the wall.
Thanks
Brenda