rent to own seminar
DESCRIPTION
Thomas Wong (Crazy Thomas) and Navtaj Chandoke presenting valuable information on how to do rent to own in Canada. Rent to own is a great real estate investment strategy.TRANSCRIPT
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Copyright 2011 – World Wealth Builders – All Rights Reserved
Real Estate Investors Education & Mentoring
Welcome!
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Copyright 2011 – World Wealth Builders – All Rights Reserved
Real Estate Investors Education & Mentoring
Disclaimers
Information, strategies and opinions contained in this presentation are provided for general information and convenience only. Since the particulars
of each situation may differ and information may change rapidly, one must seek appropriate, qualified professionals advice before acting based upon any information provided by the World Wealth Builders or any affiliated
association.
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Copyright 2011 – World Wealth Builders – All Rights Reserved
Real Estate Investors Education & Mentoring
“How to make Money $$ Lease Option/Rent to Own”
Canadian Real Estate Investment
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Copyright 2011 – World Wealth Builders – All Rights Reserved
Real Estate Investors Education & Mentoring
Want to learn fast, then…
04/10/2023 4Copyright 1993-2012 – World Wealth Builders – All Rights Reserved
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Monday, April 10, 20235
• What is Rent to Own/Lease Option?
What is it?
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Monday, April 10, 20236
How to make money with it?
1.Option $$ upfront
2. Above market rent $500-$1,000 Cash flow a month
3. No capital required
4. Guaranteed return
Where is the money?
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
What is Rent-to-Own?
• Rent-to-own your home• Lease with option to purchase• The program
– Small initial deposit (part of down payment)– Monthly payment (partly rent, partly toward
down payment)– Option to purchase the house at the end of
the lease term
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
The Differences among Rent-to-Own’s
• There are no regulated way of Rent-to-Own
• Potential variations:– Initial deposit requirement from tenant– Amount of credit toward down payment each month– How to establish future purchase price– How to handle expenses during the term– Types of contract:
• Lease with option to purchase• Co-occupancy contract
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Why Rent-to-Own? – Tenant
• Opportunity to buy a house under difficult circumstances:– Not enough down payment– Bad credit or no credit history
• Lock in purchase price when saving up for the down payment
• Pride of ownership and flexibility in upgrading the property
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Why Rent-to-Own? –Landlord/Investor• More or less worry free tenant
– Option premium– Tenant pride of ownership
• Saving in selling cost• Lock in profit and cash flow• Improve cash flow• Secure investment• Helping people and earn money
(Feels Good AAh!)
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
What are the risks with Rent-to-Own?• Tenant moves out during lease term
– Non-refundable option premium– Contingency funding in place– Property at good location and value
• Market condition changes – drop in value/not appreciate enough– Buy below market value– Work with tenant to facilitate purchase/extend
lease term– Non-refundable option premium
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
What do you need for a Rent-to-Own project?
• To put a Rent-to-Own Project together, you need:–A qualified Rent-to-Own tenant–A good property–Investor or investors to
buy the property
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
How to make money in a RTO project?
• There are 3 Key elements:– Buy below market value (aimed at about 10%
below market value)– Rental income during lease term (look for
property at a good capitalization rate, market rent v.s. market value)
– Property appreciation in value during lease term (look for property at good areas, target at close to 5% on average, set realistic expectation)
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
The “Bag of Tricks”
• We have many tools in our “Bag of Tricks” from finding tenant, finding investor to pull it all together.
• Let’s look at a few of them
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
The Rent-to-Own Process
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Where & How to get Rent-to-Own Tenant
• Advertising: Kijiji, classified ad, signs, landing page/squeeze pages– Tips for Kijiji ads:
• Pictures• Be specific about a property• Drive them to take actions (call NOW)
• Referral, Referral, Referral– Current tenant– Potential tenant– Real Estate agent, Mortgage agent– Hair dresser– Tim Horton, Country Style…
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Basics of Your Marketing Efforts
• Expose your services to many people• Attract the attention• Drive them to take actions
– Call or email you– Leave their contact information
(sign-up form on landing page/squeeze page)
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Expected Conversion Rate
• 100-10-1 (100 people see your information, 10 people contact you, 1 resulted project)
• A good Kijiji ad can expect about 300 people looking at it in 3 days
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
How to convince a potential tenant to work with our RTO program? (The first encounter)
• Focus on establishing a rapport with the client• Clarify their understanding of Rent-to-Own• Gather as much information about them as possible
– Current family situation– Current rental situation– Family gross annual income– Type of houses that they want– How much can they afford (monthly & down)
• Set their expectation (realistic expectation)• Listen carefully and aim at providing them the benefits that they are
looking for• Remember to ask for follow-up contact information and referral
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Tool to set Tenant Expectation
Monday, April 10, 2023
20
Mortgage Calculator Rent-to-Own Budget
Annual Family Income $70,000
Current Value of property 333,753.91$
% for mortgage payment 32% Appreciation rate 5%monthly mortgage paymentamount $1,867 Term of program 3 year
Interest rate 5.00%
Future purchaseprice (at the end of term) $386,362
Amortization years 30 Target down payment $38,636 10%Allowable mortgage amount $347,725.69 Client initial deposit $10,000
% down 10%
monthly option premium required $795
Value of the house that can be bought at end of lease term (3 years) 386,361.87$ monthly market rent $1,800Appreciation rate of the house 5% monthly RTO bonus $200current value of house for Rent-to-own 333,753.91$ monthly RTO payment $2,395
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Explaining RTO Simplified
Monday, April 10, 2023 21
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Explaining RTO Simplified
Monday, April 10, 2023 22
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Explaining RTO Simplified
Monday, April 10, 2023 23
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Explaining RTO Simplified
Monday, April 10, 202324
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Explaining RTO Simplified
Monday, April 10, 2023 25
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Where & How to find investors• Who you know is important; Who knows you is critical• Networking
– Physically attending PREIG Canada network meetings/events
– Social media – Facebook, Twitter, Linkedin– Need to show up. Need to be consistent.– Establish relationship with “Center of influence”
• Referral, Referral, Referral– Current investors– Real Estate agent, Mortgage agent– Hair dresser/cell phone story– Having lunch
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
What to do with potential investors?
• Be passionate with your investment strategy
• Establish rapport• Share the stories of your project• Tell them enough to generate interest, not
enough to make decision. Decisions are for follow-up meetings
• Focus on helping them to understand
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Feasibility Analysis
Monday, April 10, 2023 Copyright 2012 – Rent to Own Specialist Canada – All Rights Reserved 28
Lease Option Feasibility Analysis:Dash Board
Result Matrix DCRInvestor Profit
Tenant % Down
Tenant MonthlyPayment
Current Value 1.36 70% 10.3% 2,080$ Target 1.10 60% 10% 2,000$
Description of the property: 1930 AshwoodType of Property: Free Hold
Current Purchase Price: $265,000
Monthly Market Rent: $1,600
Land transfer taxOther Ont. City $2,450
Rehab cost/setup cost: $2,000
Closing legal fee $2,500
Avg. Annual Appreciation 5.0%
Assignment fee $7,000
Adjusted Cost base: $278,950
Annual property tax: $3,500
After Repair Market Value: $290,000
Annual Insurance: $1,000
Selling commission: 4.50% $13,050
Financing:
1st MortgageInitial Cash Investment $66,950
1st Mortgage Amount 80% $212,000 DCR(Free Hold) 1.36 Debt coverage ratio
Interest rate 4.00%
# of Amortization Years 30
2nd Mortgage RRSP 2nd Mortgage Amount $0
2nd Mortgage Interest rate 14%
Total Mortgage $212,000
Lease Option Arrangement: Note: Input field are highlighted in
Initial Down Payment $10,000 yellow
Monthly Rent (% of avg. rent) 100% $1,600
Monthly Option Premium (% of avg. rent) 30% $480
Monthly Condo Fee $270
Tenant Total Monthly payment $2,080
Monthly Option Bonus $200 (extra money to credit to Leasee's downpayment)
Tenant's Preferred Length of Lease (# of Year) 3
Lease Term: 3-Year
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Copyright 2010 – World Wealth Builders – All Rights Reserved
Real Estate Investors Education & Mentoring
04/10/202329
Go to www.WorldWealthBuilders.com
Search for the clues
Receive your GIFTS
Priceless Gifts
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Good, Bad & Ugly• Good cases: Guelph St, Oprington,
Ecclestone• Bad:
– City Place – Bad to Great– Wexford – Bad to Good, Thank God!– Hallen Rd – Bad to Not bad
• Ugly:– Hansen Rd – Learning experience– Bramalea Rd – Turn Ugly to beauty– Bryant Crt – Ugly recovering in progressMonday, April 10, 2023 30
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
The “Bag of Tricks” or Apprenticeship
• We still have many more tools in our “Bag of Tricks” like how to pull a RTO project together and how to run the project to ensure that we are making money at the end.
• What else you may want to know:– How to choose a house for RTO?– How to negotiate the best deal from seller?– How to save money in renovation?– How to deal with tenant issues?– How to deal with investors?– How to structure a RTO joint venture ?
(make money now, make money along the way,and make money at the end)
– How to sell the property to RTO tenant at the end of the term?.....
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
How to get the rest?• You got a lot of useful tools today, you can
use right away• World Wealth Builders is offering a full day
training course to provide you all the tools• It will be in September, 2012 in Toronto• The cost is $1995 per person. Two can
attend together at $2995.• After you attend the course, you will know all
of our bag of tricks. We may even partner with you in projects….
Monday, April 10, 2023 Copyright 2012 – Rent to Own Specialist Canada – All Rights Reserved 32
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Today is your lucky day!
• Further discount from the price – twist the arm..but never break it!
• Most of you can attend the course for half priceProvided you buy the lunch for me
• You can make money with us now– For every person you refer to attend and pay
for the course, you will get $100 cash– When you refer 4 pay attendee, you attend
the course as complimentary
Monday, April 10, 2023 Copyright 2012 – Rent to Own Specialist Canada – All Rights Reserved 33
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Copyright 2011 – World Wealth Builders – All Rights Reserved
Real Estate Investors Education & Mentoring
Lease option Rent to own Canadian Real Estate Apprenticeship – LIVE
Tuition fee $2495.00 plus HST
WorldWealthBuilders.com/live
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Copyright 2011 – World Wealth Builders – All Rights Reserved
Real Estate Investors Education & Mentoring
Lease option Rent to own Canadian Real Estate Apprenticeship – LIVEToday Special $995 plus HST
Dates: September 2012
WorldWealthBuilders.com/live
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Mentoring & Coaching for Real Estate Investors
Book an appointment for 30 minute Complimentary mentoring/coaching now!
Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Copyright 2010 – World Wealth Builders – All Rights Reserved
Real Estate Investors Education & Mentoring
Monday, April 10, 2023 39
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Real Estate Investors Education & Mentoring
Lease Option Rent To Own Seminar
Copyright 2011 – World Wealth Builders – All Rights Reserved
Real Estate Investors Education & Mentoring
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