PokerNutter

Yea exactly..It seems like this group does just that: website 1 and website 2. I haven`t worked with them but this brokerage is dedicated solely to real estate investors and rent to own seems to be their preferred method. I`m sure they are double or triple dipping where applicable. I would rather do straight up CA`s or L20`s with motivated sellers but at least this way provides me an opportunity to still do a deal when sellers are scarce.

There are advantages and disadvantages of getting the T/B first. It was a great selling point for them as they feel more involved and have more say but you have to really have motivated T/B`s otherwise you could waste a lot of time. As I wasn`t dealing with motivated sellers, they were able to browse on MLS and I had a real estate agent help them in selecting a house. The sellers paid for my agent so why not? He knew what was going on and so there has to be a level of trust b/c obviously the deal won`t go through unless I find an investor. It was a win win for everybody and I`m teaming up with another agent now trying to replicate the process.

I did something similar last december. I first found tenants and then had them choose a house in an area they liked. I got it at a modest discount and found investors to come in and buy the house, leasing it to the tenants I found. I took a fee upfront and also a portion of the cashflow as I`m sticking around and managing the deal. It was hard to find investors as I didn`t have a lot of experience and that was probably the hardest part. I think it is a great idea to employ in an area that isn`t saturated with motivated sellers (read: Canada lol) and if you have a binder showing how many deals you`ve done, then winning over investors should be easier. Actually I know of a few people doing just that and they are inundated with investors it seems. This was in your neck of the woods btw Doug..KWC, so definitely worth considering. What investment group emailed you?

This is an article that made the front pages of The Toronto Star. Worth a read for some canucks.. Article link: http://www.thestar.com/article/498670

Thanks for the response Doug. I`ve encountered a seller or two that were frustrated with their agents and considered lease to owns, good to see its still an option. In your experience, do you always deal with the agent first? I`m wondering if I can work out a deal with the seller and just notify the agent of whats occuring and offer the split just to keep them happy. Maybe it would minimise the chances of them mucking it up?

Doug, in these scenario if the owner agreed, how would the agent be compensated? Also, are you presenting lease to owns or CA contracts (or both)?

Hello Guys, My name is Sandrine, I`m 23 years old from Mississauga in Canada. I`ve bought the manual and been a forum member for probably 2 years. I tried a L2O that didn`t work out and more or less put real estate on the back burner. I completed school and got a job working for the bank in the meantime but the real estate bug has never left so i`m back at it again. This site is one of my favourites and I`m sure you members will be a great resource and I hope I can eventually be one to you as well. My primary goals at this point are to focus on 1.CA`s with motivated sellers 2. Pure Options (where I assign to other investors or retail buyers if spread is enough). I`m doing this to build a significant amount of cash reserves. After that I`ll work on sandwich L20 or L20/buy and hold strategies with investor partners. Any advice or comments are appreciated. Thanks! Sandrine

The above post was from me btw. Forgot to login...

Allow me to chime in here. As a Canadian, I can attest to Dougs frustration. Sending out postcards and coldcalling may or may not be methods of finding sellers but we're forgetting an important factor. There is a societal aspect to these sort of creative deals that just hasn't caught on in Canada. That coupled with well appreciating markets and more stringent lending requirements make for a significantly less proportion of viable 'motivated sellers'. Im not saying its not possible but highly unlikely given the circumstances to do as well here as is being done in the U.S. Remember that saying, if it was easy, everybody would be doing it -- the same applies. I too am now in the process of setting up partnerships in order to acquire real estate and sell conventionally. It should work out alot better.

What exactly do you plan on doing? Matt is full of it and I have 500+ worth of credit card bills as a result. I'm not sweating it, that's one deal or two shifts of working. It can be rent to somebody else. If you have sensitive information and choose not to disclose thats fine. I do think that you should still try to expose him and prevent him from doing to others what he did to you. If only I had found MC sooner...*sigh*.

Another Canuck here checking in....I'm from Mississauga. Been really busy with non-RE related things but hope to be back in service soon. Good to see other Canadians dabbling in creative real estate as well.

Happy to see football is back. Looking forward to see my Eagles take title of the Superbowl this year in Detroit.

Sorry Michael for posting in the wrong section *oops* Anyways thanks to those that responded. I appreciate your help....

Hey guys, I recently came across a woman in a forum interested in a rto in Michigan. Oakland county or Detroit, Oak Park and Southfield areas. Thats all the information i've recieved but can put the two parties together. I know Adam is in Michigan so I thought i'd throw it out there. If you want to pass along your contact information or gather hers let me know. Thanks.

Sorry, forgot to sign in. I've decided on a CA because the spread if it was a SLO isn't enough for the associated risk. That being said the contracts I need and there associated questions are the: Option to Purchase 1.Should I determine a number to put in section 3 for option consideration or leave it blank as I don't know exactly how much the market will support. Suppose I put a number but can only get less or are able to receive more? 2.Same section, what date should be filled in as receiving the option consideration? CA Residential Lease Agreement 3.I can just leave the Occupants section blank right? CA Assignment of Agreement 4.I haven't found my assignee so do I leave that blank as well and just get mine and the sellers signatures or come back with that when I have the t/b. Also, the seller was willing to do a 4 year lease for a SLO. Any suggestions on how long I should make the term for a C/A? I'm thinking 1 or 2 years but also renewable.

Just an update. We're meeting this Thursday to 'consumate' the deal. This is a condo SLO btw. So far the terms are 3br/2ba condo 4 year lease 1500/mth + utilities with 250 rent credit on purchase price. 160,000 purchase price. Comps are currently low to mid 160's so not much of a deal on the current price. From all indications, rent in this area is 1500-1800 inclusive. Appreciation is about 3-5% in this area. I have no clue on how I should structure it for my t/b's. Also, should I keep this as a SLO or turn it into a CA? Your thoughts?

Seeing that it's already August 8, there is no way that a September 1 start up date is realistic. Even if you were to find someone tomorrow, most locales require a tenant to give thirty days notice before vacating. October 1 is more reasonable and, depending upon your market, possibly November 1. If this is a sandwich lease, you don't want to start out with a vacancy. The homeowner should switch his insurance to a Landlords Policy. This will cover the premises physically, and also include liability coverage in the event someone is hurt on the property and wants to sue. What do you mean when you say "in the event of an accident, my interests and those of my buyer are protected?" Necessary? No. But a good idea. This means you would make your payments to a third party, such as a title company, or an escrow company. They then make the payments to the lender, as per your instructions. You shouldn't take a chance making your payments directly to the homeowner. How can you be certain that money is going to the bank, and not to the slots at the local casino? As many as you can get. More is better. We don't enter deals looking to back out, but we still need a safety net beneath us in case things don't go as planned. <{POST_SNAPBACK}> Thanks for the reply. Yes, you're correct in your assumption. It is a SLO.

Just an update. I went, took pictures, we talked. He agreed to go down on price of the place as well as monthly payments. I'm going to call him back and set up the last meeting (contract signing) this week. Here are some of my concerns 1.This is a LO and he wants to be out of the place by Aug.1st. I doubt that is enough time for me to find people. What time should I start the lease? Sept1st? 2.I'm not sure what type of insurance he has now but should he have a certain type of insurance so that in the event of an accident, my interests and those of my buyer are protected? 3.The residential lease with option to purchase agreement, section 18."ESCROW" Is this necessary? What exactly is it referring to? 4.How many days I should i give myself as a right to cancel? Any suggestions are welcomed.

I think you misread a portion of my post. I wasn't referring to the contract, I was referring to the short offer form/letter. I was going to leave that with him because it isn't binding and it details the terms of the deal. Second, by alter, again I'm referring not to the contract but to the terms. (say if his friend suggests that he get money down or change the monthly payments) obviously we'd have to resolve that. Thanks for the info but my main concerns weren't addressed. Should I bring the short offer forms/not and what should I wear? Thanks

I'm meeting with a seller today. He's already agreed to the rent-to-own and terms. I'm only looking at the place today though. I think he's afraid it may not be 'up to par' so to speak. He said if I like the place then we can do a deal. If it has a roof and a door, i'm taking it. I just need this 1st deal out of the way. This is a LO at the point. Should I bring him a short offer letter/ form? He said his business saavy buddy wants to look over the terms so he's not being duped, which is fine as long as he's no real estate agent. I'm thinking go today, take pictures, give him offer on paper. He can have friend review it (sans real contract) and come back to me with alterations or appointment to sign. Should I wear business attire? I look young so I don't want to go 'casual'. Any other suggestions are appreciated. I'm just trying to take things in stride. Thanks in advance.

Sorry to hear that Doug. How did your seller and buyer get together though? Also have you talked to the sellers, maybe they'd compensate you for your time?

Another question if you don't mind. When going to sign with the sellers? Do we need a notary for CA/LO papers present?

Hey guys, I understand the least amount of downpayment buyers are allowed to put is 5% (generally speaking). Would CMHC and GE allow that 5% to be carried by the owner. Allowing the buyer to be 100% financed really but only 95% through them or is there regulation against this?

Hey guys, When you decide on a payment for a RTO you're doing, how do you incorporate taxes and utilities (basically anything besides principal,interest)? Do you advertise 1300+Maintenance+Taxes+Utilities or do you estimate what they'd be and increase the payment to one bulk payment? I'm interested in knowing for both a LO or CA. Thanks

Michael, by "found the seller through the realtor" I mean using any form of marketing that the realty employed. This counts as house signs, flyers and even mls online if done through a listing agent. I guess i'll insist like Doug that they cancel their listing agreement. The agents commission would probably eat at the deal. Thanks for the all the help guys. Happy Canada Day fellow canucks!