“how to make profits with rent to own” real estate investment
DESCRIPTION
“How to make PROFITS with Rent to Own” Real Estate Investment. Rent to Own/Lease Option. What is Rent to Own/Lease Option? How to make money with it?. Who am I?. Crazy Thomas Thomas Wong Your rent-to-own specialist A real estate investor with a process improvement background - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/1.jpg)
![Page 2: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/2.jpg)
Wednesday, April 19, 2023 2
What is Rent to Own/Lease Option?
How to make money with it?
![Page 3: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/3.jpg)
Crazy Thomas Thomas Wong Your rent-to-own
specialist A real estate
investor with a process improvement background
Have done over 40 rent-to-own projects in the last few years
![Page 4: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/4.jpg)
Rent-to-own your homeLease with option to purchaseThe 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
![Page 5: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/5.jpg)
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
![Page 6: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/6.jpg)
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
![Page 7: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/7.jpg)
More or less worry free tenant Option premium Tenant pride of ownership
Saving in selling costLock in profit and cash flow Improve cash flowSecure investmentHelping people and earn money
(Feels Good AAh!)
![Page 8: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/8.jpg)
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
![Page 9: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/9.jpg)
Tenant or Property First? (Chicken or Egg)
It is dependent on: Market conditions Investor preference Investor financial capability
![Page 10: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/10.jpg)
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
![Page 11: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/11.jpg)
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)
![Page 12: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/12.jpg)
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
![Page 13: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/13.jpg)
![Page 14: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/14.jpg)
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…
Technologies: Iphone app, Youtube, Google adword
![Page 15: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/15.jpg)
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
![Page 16: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/16.jpg)
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
![Page 17: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/17.jpg)
Wednesday, April 19, 2023 17
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
![Page 18: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/18.jpg)
Wednesday, April 19, 2023 18
![Page 19: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/19.jpg)
Wednesday, April 19, 2023 19
![Page 20: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/20.jpg)
Wednesday, April 19, 2023 20
![Page 21: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/21.jpg)
Wednesday, April 19, 2023 21
![Page 22: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/22.jpg)
Wednesday, April 19, 2023 22
![Page 23: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/23.jpg)
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 progress
Wednesday, April 19, 2023 23
![Page 24: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/24.jpg)
Cash investors (get 20% return per year for 1- 3 year terms)
Mortgage partner (get >50% return per year) RRSP 2nd Mortgage investor (get 14% interest
only return per year) Assign contract with confirmed rent-to-own
tenant from Thomas Ask Thomas to help you to structure your own
deals Let Thomas mentor you on doing rent-to-own
deals
![Page 25: “How to make PROFITS with Rent to Own” Real Estate Investment](https://reader035.vdocuments.net/reader035/viewer/2022062407/56812b9b550346895d8fbe15/html5/thumbnails/25.jpg)
Call us at 1-866-878-6884 ext 1 or 416-806-9568 and talk to Thomas for more information
You can also email [email protected]
Check out our iphone app http://www.app.cat/crazythomas