Have not heard of this specific business but looks like they may be a Lease To Own RE business and intend to lease long term and sublease with an option to sell. There are more and more people doing that in the USA.
The way they make immediate cash flow is to sublease for more than they lease and also pick up $5,000 on the option for the subleasor to buy after 1 or 2 years. They get this upfront.
Your friend should check what they are doing exactly and if they plan to do this. If this group wants an option to buy the property, the owner can charge them a $5,000 option fee, pull the cash upfront and get a sale in a year or two at a bit higher than market value, meanwhile picking up rental income.
Ron
QUOTE (TylerUzelman @ Oct 5 2009, 07:56 PM) Hey everyone. I had a friend contacted by a company called MDN Finance out of Calgary looking to sign a long term lease (4 years) with them for a property they are trying to rent out. They mentioned they would be re-leasing it out and taking care of all maintenance also... I`m skeptical, so I thought I would post a thread to see if anyone has heard of, or done business with them. Please fill me in, thanks.
