Lease to Own

[EdRenkema]

I was recently approached by my brother re a possible RE purchase he was requested to co-sign the mtg. This is his girlfriend`s sister, I don`t know her but apparently she has selected a hs to buy in K/W area of Ontario-#1 on REIN list, she has 2 jobs and 3 dependants but little for down. I advised him against cosigning and try to set up a LTO and the first step is to inquire about how much she can put down and how much she can afford for rent-to-own payments. I`m just starting to build my own portfolio and my time is at a premium. I`d like to help make this deal happen providing all preliminary criteria are met.
My question is how can I set this up so I spend my time efficiently and help them and myself?
Thank you in advance for your suggestions.

Ed R

 

[BobHudson]

You are right to be wary on this one. Make sure that she has sufficient up front deposit and the ability to pay rent above normal market. Friends and family lead to more difficulties as it is hard to treat them as objectively as a stranger.

You may want to have her financials checked out by a mortgage specialist who understands lease options, such as REIN member Guy Lew. To get Guy`s contact info, check the links at the right side of my lease to own blog http://lease2ownbob.blogspot.com/

 

[EdRenkema]

Thanks Bob, apparently she has been approved for a mortgage but it isn`t enough, I will get more details. This may turn out to be a JV opportunity for me. I have seen Guy`s name before and he is highly spoken of by other REIN members.

Ed R