About us | Contact us | Affiliate Links | Blog

Investors - Real Estate Investment Opportunities

Are you looking for an excellent real estate investment without all the headaches of average tenants? Would you also like to add higher cash flow and higher returns to your portfolio? How about a unique and profitable way to invest in real estate with sophisticated Buyers that are emotionally and financially invested into the deal!
A real estate investor is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. A passive investor might hire a firm to find and manage an investment property for him/her. Typically, investors choose real estate for several reasons: cash flow, appreciation, depreciation, tax benefits and leverage.
A cash flow investor might opt to put various percentages down when acquiring a property. This may allow the investor to obtain favorable financing terms and a lower mortgage payment. This will often result in positive monthly cash-flow, crudely derived by subtracting the monthly debt service from the monthly rent.
Appreciation occurs over time, generally, though an investor may "force the equity" in a property by making enhancements to it or the surrounding environment to increase its value. In general, residential real estate is valued by the "comparable sales" method which estimates the value of property under the principal of substitution.
Depreciation is one of the many benefits afforded to real estate investors. Although the property is actually increasing in value, the government allows owners to systematically depreciate the property over its projected useful life span. Depreciation is an allowable tax deduction. In addition to depreciation, an investor will usually claim the interest portion of his monthly mortgage payment as a tax deduction. Professional and sound advise from a certified tax specialist should always be sought.
Leverage is a powerful reason for investing in real estate. If an investor used 100% cash to acquire a house worth $100,000, and the house increased in value by $5,000 in one year, then the investor made a return of 5% (assuming no other costs in this case). However, if the investor obtained 95% financing, only $5,000 Cash would be required at the closing table, and a bank or other lender would loan the remaining $95,000 to acquire the property. Assuming the same $5,000 increase in value, the investor's cash contribution of $5,000 would yield an increase in equity of $5,000 in one year, a 100% return.
So why invest in Rent To Own? Simply put, you can enjoy the above benefits plus have the peace of mind knowing you have a pre-determined exit strategy! It would be a mistake to exclude Rent To Own from your portfolio considering the injection of wealth it can help create. Read More

Contact Us

*Your name:

*Your e-mail:

*Comments / Request:


 
*Type the code in the blank box:


  

* - required!

 
How does Renting-To-Own a property work?

Our Rent-To-Own program consists of two separate parts, a Lease and an Option. These together give rise to the other commonly used name for this real estate strategy: “Lease Option”. Simply put, our client rents the property from us as a normal tenant would, and also has the option to buy the property at a pre-determined price.

The Lease portion of our program is a simple Lease, and we will often use the Provincial Government’s own version, if one exists.

The Option portion is where, as they say, “the rubber meets the road”. It is designed to work with the Lease and requires all aspects of a Lease to be in good standing. The Option is where the client is granted, for a fee, the Option to Purchase the property at set price, and for a set length of time. It also sets out additional obligations and rewards for our client.

The additional responsibilities are along the order of “perform all maintenance and repairs on the property”. In this way we ensure our clients are well established in the mindset and routines of a home owner, so the transition from renter to owner is natural and easy. Our client is further rewarded, when they perform these obligations, with a monthly credit towards their down payment, which builds until they go to purchase the property.

The most common length of time for our Rent-To-Own program is between 1 and 5 years. This seems to be enough time for our clients to fix whatever credit, or debt issues stop them from purchasing today, and it’s also enough time for us to help them save their down payment.

It is our intention that ALL our clients have the capability and means to purchase the home they Rent-To-Own from us. We carefully screen our clients and pre-qualify them for the future purchase, usually before they’ve even seen the property! We also ensure through the monthly credit we give our client, that they have sufficient funds for their down payment when they go to buy the property. Furthermore, we aim for our clients to want to buy the property they rent from us - the most effective way we have found to do this is to sell our clients the home at below fair market value; our clients actually make a profit when they work with us!

Over the years we have run our Rent-To-Own program, we have helped many people help themselves to go from renting a property, to owning their own home. While we treat our Rent-To-Own program as a profitable business, it is also our pleasure to help people achieve their dream of home ownership; we feel it is a way we can give something back to the community.

Close it