QUOTE (WJW @ Nov 12 2009, 04:39 PM) Thank you everyone for your replies. This forum is amazing....
I wanted to clarify my situation. I`m a realtor and have 2 different clients that can`t buy a house the conventional way because of poor credit. They are interested in purchasing a home by way of RTO. I have investors that are willing to buy a home on their behalf and rent it out with the option to purchase.
However, when I approached my mortgage broker all I got was how `this can`t be done` answers. The confused mind will always say "no".
He brought up some valid questions like:
What if the renters can`t qualify for a mortgage at the end of the term?
What if the property doesn`t appraise for the agreed upon price when the option is up and they can`t get a mortgage?
So I guess I`m wondering if there are any mortgage brokers in the KWC area that have already helped and completed an RTO. Or does it really matter where the mortgage broker is located?
Regards,
walter
Drop your mortgage broker. Clearly you need someone who knows MORE than you do about financing, not less. I also recommend anyone on the Peter Kinch team, mark loeffler can tell you everything you need to know about RTOs. You`ve been fed some very misleading information. It should be easier to get financing on an RTO, not harder, because you have a signed lease for higher than market rent, but you have to structure it correctly. email me if you like, or talk to mark.
Also, if you cannot answer those questions posed by your mortgage broker, you need to do more research on RTOs. Those questions should be answered well before you are at the buying stage. RTOs can be very profitable but you must know all your answers before you start the process. Think of it as a joint venture with the tenant. Everything must be spelled out clearly or there will be rocky terrain ahead.
You`ve come to the right place.