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Is Renting To Sell a good option for you? Well, answer these few questions:
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Is your house sitting vacant?
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Did trying to sell your house the traditional way not work well?
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Are you looking at options like renting and owner-financing in order to cover your mortgage payments?
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Are you willing to wait a couple years to get your equity out of the property?
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Would you benefit from positive cash flow from the property for a couple of years?
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Do you owe less than the property is worth?
If you answered "Yes" to some, or all, of these questions, our Rent-To-Sell Program might be a good solution for you!
We are a Vancouver based real estate investment company that specializes in selling houses using our unique Rent-To-Sell system in select cities across Canada. We work with a small number of properties in each city at any one time, thus giving your property maximum exposure. Our target market is relatively small, but highly motivated.
What is Rent-To-Sell?
Renting to sell is just one untraditional technique you can use to sell your home. The Tenant-Buyer (tenant) signs a lease, with an Option To Buy, that is any where from 6 months to 24 months, and occasionally up to 36 months, in length. The Tenant-Buyers pay an up deposit, called an Option Fee, of approximately 2% of the current value of your property. That Option Fee forms part of the purchase price, and is yours to keep.
Next the rent is calculated to include:
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mortgage payments
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realty taxes
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condo fees (where applicable)
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a return on your equity
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monthly purchase credits (which become part of the Tenant-Buyers' purchase price)
As a general guide line, the Rent To Sell rent will be about 25% higher than market rents for the property.
The purchase price is preset in the Option Agreement.
How will RentToOwnItNow.com find us a Tenant-Buyer?
The first thing we do is determine whether or not we will accept the house into our program. We consider the following:
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neighbourhood and community
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condition of the property (Houses in our program must be in good to excellent condition.)
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the current loans to value ratio on the property (Properties with more debt than value are not good candidates for our program.)
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the ability and of the owners to delay recovering their equity in the property by up to 36 months.
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the property value (It must be within 15% of the community average.)
The second thing we do after accepting the property into our program is to sign a non-binding Option Agreement with the home owners for us to rent the property. The non-binding nature of this agreement allows the home owner to continue to offer the property for rent or sale at the same time as we are looking for or qualifying a Tenant-Buyer. If the property is sold or rented before we sign an Option Agreement with a Tenant-Buyer, the home owner owes us nothing.
How do you qualify a Tenant-Buyer?
RentToOwnItNow.com has strict criteria that each Tenant-Buyer must meet. In the same way we work with a limited number of Sellers, we also limit the number of Tenant-Buyers we select for each city at any given time. Our criteria includes, but is not limited to:
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having sufficient Option Fee
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family income is more than 3 times the rent
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no serious recent credit issues, such as bankruptcy or foreclosure
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do the Tenant-Buyers really want to own the house 2 - 3 years from now?
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no evictions for the last three years
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good references from landlords and employers
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can't owe alimony or child support payments
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do they have a realistic chance of getting a mortgage at the end of the agreement?
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what will they have to do to qualify for a mortgage at that time?
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are they committed to restoring their credit?
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FINALLY, we review the application with the home owner.
When the home owners approve the Tenant-Buyer, we will then sign the Option Agreement with the Tenant-Buyer in our name, before assigning that Option Agreement to the home owners. The home owners are the landlord and beneficiary of the Option Agreement. Title remains in thie names.
How does RentToOwnItNow.com get paid?
We get our money from the Tenant-Buyer.
Why would a home owner use this method to sell?
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It all but assures a sale wthin 24 - 36 months
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tenant-buyers are required to maintain the property and tend to treat a home with more respect tha traditional tenants, sometimes even improving it
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the home owner pays no Realtor fees (unless a Realtor has referred the home owner to us, and then the fees might be negotiable.)
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the home owners get higher than average monthly rent, resulting in a positive cash flow
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the future sale price is set in advance, and the home owners can all buy rely on that sale going through at a price higher than today's price (A small percentage of Tenant-Buyers do not complete the purchase, in which case they forfeit the Option Fee and Monthly Purchase Credits.)
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the mortgage principal will be paid down during the term of the lease, further increasing the net proceeds from the sale
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