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Feb
07

Real Estate Investing – Some Tips On Investing In Apartment Buildings

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Some Tips On Investing In Apartment BuildingsSome Tips On Investing In Apartment Buildings

Investing in real estate goes beyond having cash at your disposal and looking for opportunities to plug your money. It is never a guarantee that you would succeed. Real estate investment can be subjected to sharp swings and dramatic downturns. So you can be making a profit one moment and then lying in a ruin of losses the next moment. If you are looking to invest in apartment buildings.

Here are some tips that you can use to ensure that your investment is not swallowed up by a sea of uncertainties.

Research the Market

Smart apartment investors should always find out the going rate for vacant apartments before committing funds. A good way to obtain information is to interface with property management companies. These companies manage condominiums for other investors and can give you the heads up on any pending projects or openings. You can also get a phone book and call real estate brokers as well. They can dole out valuable information about the real estate market in your vicinity.

Familiarize Yourself

Before you buy an apartment building, you should have it inspected by a professional, conversant with commercial properties. Take heed to look at coolants, heating systems and electrical wiring more closely. Ensure that you do not have a pest problem as well. There is nothing more annoying that shaking your hands on a deal and having some pesky rodent scurry past in excitement about having a new owner. In addition, it helps to also look beyond the building and consider the area. Is it a gang area? If your apartment building is located on gang turf, the building belongs to them and not you.

Credit Scores and REIT’s

Investors interested in taking out a loan on the purchase of a condominium, need a healthy credit report that contains accurate information. It is important that this is sorted out as soon as possible. Ensure that you stay on top of things and keep the credit score as high as possible.

Moreover, owning and running an apartment complex can be a daunting task if you are ill-prepared. One way to avoid this major pitfall is to invest in Real Estate Investment Trusts (REIT). They are on the stock exchange market and are easy to weave through and make a profit unlike real estate sales that can be slow and time-consuming.

Never overpay for a property. Profits are made only when you buy at the appropriate price. If you buy beyond your budget, you have heaped pressure on yourself and might just be running at a loss or in a worst case scenario looking at bankruptcy. It is important that you stick to your purchase price and not budge no matter what.

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Jan
05

Commercial Real Estate Tips To Keep You On Top

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Commercial Real Estate Tips To Keep You On TopCommercial Real Estate Tips

Commercial real estate is a market where many people have found success. There’s no magical formula for success. What is needed is industry-related knowledge, experience, and much hard work. Read on for some advice about how to be successful in the field of commercial real estate.

If commercial property is something you’re thinking about investing your time and money in, take the tax advantages under consideration. As an investor, you might receive interest deductions as well as depreciation benefits. Sometimes an investor will get a bit of money that is taxed even though it is not received. Take this possibility into account when drawing up an investing plan.

Bigger is better when you are thinking of purchasing commercial real estate. If you are considering buying a five-unit building, remember that managing 50 units is just as easy as handling five. Both require commercial financing, and a larger building will cost less to finance per unit.

When you are purchasing a piece of commercial real estate, know in advance what you plan to do with it. Do you want to start your own business there or do you want to lease the space? You can save effort and time by defining your commercial property needs before you set out on your search.

Understand how the firm you’re looking to work with conducts its business and measures results. There are a number of details that will affect you critically, such as methods of negotiation, property selection criteria and the amount of space you need. Find out exactly how these sorts of considerations will be determined. Knowing these things before signing with them can be very helpful.

Before being occupied, your new purchase might need some improvements or remodeling. The changes could be rather cosmetic. Sometimes it is as simple as painting a wall or moving some furniture. In many cases, it may be necessary to move walls or rearrange a floor plan. Be sure to negotiate who is responsible for these changes ahead of time so that you do not have to pay for the full cost.

When you are hunting for a permanent home for your growing business, keep in mind that size matters. You should rent commercial properties that will allow your business to grow.

If you are selecting a broker, ascertain the amount of experience they have had within the commercial real estate market. Verify they have experience in working with the type of properties you are interested in. You and this broker should enter into an agreement that is exclusive.

If you plan to finance your commercial investments, you must first ensure that you are backed by a competent legal adviser. If a complication arises relating to your real estate transaction, you should be represented by the best person in order to set everything straight.

Having the right approach is one key to succeeding with commercial properties. Take that you’ve learned in this article and use it in your business strategy. You don’t want to stop here though. You want to continuously expand your brain with knowledge that you can use and apply. As your experience grows over time, so will your success.

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Jan
05

Things To Remember When Buying Real Estate

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Things To Remember When Buying Real EstateThere are different rules when it comes to financing, searching, and buying a home, so the whole process can be overwhelming and complex. Discovering the various insights and ideas for a winning journey are important before you start looking for a home.

If a seller doesn’t accept your offer on the home, don’t be surprised if they still manage to make the home affordable for you. Sellers will often cover repairs or closing costs, in order to help a buyer afford the property.

If you want to buy a portion of a building, or perhaps the entire building, to open your own business, be sure that the building is in a nice, safe neighborhood. If you choose a bad neighborhood as the venue for your business, you probably won’t get a lot of customers. Seek the advice of a real estate professional regarding the best place to start your business.

This is the best time to start investing in real estate. Property values are very low now because of the crash in the housing market. When buying a house for your personal use, research the real estate market in your area and use a qualified local agent. The market is going to rise again, and it will make your investment profitable when it does.

Keep your eye on the market for pre-foreclosures. If you can afford to wait before investing in a home, pre-foreclosure can be a good option. Pre-foreclosure properties are ones where the owners of them have risk of losing their home because of delinquency. A list of possible pre-foreclosures can be gotten from any lender. You could also advertise you purchase homes for cash. However you find owners of pre-foreclosures, find out what the owner owes, and make an offer that is a couple thousand dollars above that amount. You will discover that you will get a great deal because most owners owe less than the property’s market value.

Ask your Realtor if they can give you a checklist. Realtors usually have a list that you can go over to ensure that you take care of all necessary things when you are looking for a home and trying to finalize the mortgage. The checklist can help you organize everything before you go forward to make sure you have everything.

If you are going to purchase a house, hire the workforce that you need on your own. You might be tempted to use the seller’s house inspectors or appraisers. It can be difficult to open your wallet for something you know could be obtained at little to no cost at all. Yet, it’s still a better idea to surround yourself with your own crew that you know you can trust. A home is an expensive endeavor, getting the real truth now can save you a lot of money in the future.

Use the tips you’ve just read to jump-start your education in home-buying. Use what you’ve learned in your search to avoid the missteps others have taken before you. Good luck in your search and enjoy your new home.

Things To Remember When Buying Real Estate

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Jan
05

Tips To Make Smart Commercial Real Estate Choices

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Tips To Make Smart Commercial Real Estate Choices Are you ready to buy your first commercial property? At this stage, you probably have many questions about how to get started, however, you do not need to worry, as this article is packed full of advice for the aspiring commercial property developer. Here is some advice to get you on your way in commercial real estate.

Take a good look at the property’s surroundings. You will have to clean up environmental wastes from your building. Perhaps you are looking at property located in a flood plain. Think long and hard before continuing on that path. Certain agencies are available in most areas that will provide substantial information regarding the local environment, its conditions, weather patterns, and any concerns you should have as a real estate owner.

Interest rates fluctuation is a major threat to commercial property investors. Current conditions, with their unpredictable rises and falls, leave investors room to make a great profit or to suffer an incredible loss. Always keep these rate fluctuations in mind while shopping for properties so you can understand the long-term impact of them on your purchase.

Take into consideration any possible environmental problems. Hazardous waste on the property is a large area of concern. You are responsible for these problems if they occur on your property, even if you are not directly responsible.

You need to acknowledge that property has a limited lifespan. If you ignore this, it could cause you to spend more than you had planned keeping up the property. The building may need repairs such as a new roof or an electrical system update. Every piece of commercial property needs maintenance sometimes; however, some buildings require more extensive or frequent repairs than others. Make sure you develop a plan for the long term to manage repairs such as these.

Don’t underestimate your relationship with private lenders or investors when you buy commercial real estate. Some of the best deals are made on properties that are never even publicly listed. Knowing the right people and being in the right place at the right time is the only way to get in on such deals.

Before offering to purchase a commercial property, secure a lender. Speak with your investors and friends to make a small list of the area’s best lenders. Before you even embark on a course to buy commercial real estate, do some research and choose one lender that can meet your needs. Making arrangements in advance can pre-qualify you for loans or otherwise expedite the loan process.

Ensure that you have reviewed your contracts before negotiating leases so that you minimize the chances of default. This will decrease the probability of the tenant defaulting on the lease. You want to ensure this doesn’t happen at all costs.

With this newly learned information, you are better prepared to handle commercial real estate. Even if you thought you had a grasp on the basics before, the pointers in this article should make it that much easier to go out with confidence. Hopefully, the tips that you read gave some clues that will help you get started with your commercial real estate adventures, so that you can be successful with them.

Smart Commercial Real Estate Choices

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Jan
05

Be Smart And Follow These Tips On Buying Real Estate

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Be Smart And Follow These Tips On Buying Real EstateTips On Buying Real Estate

The main issue of real estate is the risk that a property will lose its value. Here’s some tips on this subject:

When making your offer on a house you are interested in, it is possible to ask the seller to help with closing costs or provide other financial incentives. For example, you might request that the seller buy down the rate of interest for a couple of years. Some sellers may not want to give you a price break on the home if you ask for financial perks.

Sellers will warn to you when you carry around a letter of mortgage approval with you. Waiting for approval will also cost you time during the process of buying, which might ultimately cost you dollars as well.

If you’re buying real estate, seek the guidance of a broker or real estate agent. These people have a lot of resources that you might not be able to get. One of the useful tools brokers work with is special software that sorts through MLS listings based on various types of criteria. This specialized software makes your search for a new home more efficient and ensures that you don’t miss any listings.

You can often find bargain prices on homes requiring a large number of repairs and improvements. This permits you to save your money on the purchase price, and you have time to work on your home at your own pace. You can build up equity with each and every improvement as well as get the exact home you want. Try to envision what the house might look like once all the improvements are made rather than dwelling on its current condition. The home of your dreams might be waiting for you behind an outwardly rough exterior.

A professional inspector should be hired to perform an inspection on any piece of property you are looking to buy. Though it may seem like an unnecessary expense if a buddy thinks he can do it; hiring a professional will give you an expert perspective on the quality of your potential investment. A certified professional can also be held accountable for his opinion, unlike your buddy who will leave you holding the bag.

Before you put an offer on a home, measure it yourself. Make sure the listed square footage is in compliance with public records. If these numbers do not match up closely, you should not buy the property without consulting your agent to have it fixed.

If you are interested in a rental property, make inquiries regarding who is responsible for the gardening before you sign the lease. Some rentals will make you take care of this chore, while others will include a gardener as part of the rent. Other rentals will have this service done for you, and it will be reflected in your monthly payments.

Most first-time buyers are surprised to find out how complicated purchasing a new home is. This advice should be utilized well when it’s time to purchase property.

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Oct
15

About Commercial Real Estate

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About Commercial Real EstateCommercial Real Estate – A Primer

When speaking with a bunch of real estate investors recently in Greater Toronto Area, the question arose as to what percentage of them have completed a commercial property deals in last one year, and interestingly, the answer is none. It seems that many of investors were either happy with the present market conditions or they did not actually have the ability to go for acquisition of a commercial property.

Market specialization? No. It appears that most of property transactions go something like this:

  • Residential real estate is that the sweet spot of the small real estate investor.
  • Commercial real estate is usually left for the small business owner, who has opted to stop renting.
  • Both of the above two factors of the real estate industry do have some crossover, but the last two statements are the common norm.

So how specifically are commercial properties being bought, sold, and rented? What’s the best method to acquire a commercial property and who you need to assist you in buying commercial real estate?

Here are five key points to consider:

  1. By far the most common business entity for owning commercial real estate is currently the incorporated company.
  2. Commercial real estate, in general, less common subject, in part, as a result it isn’t as personal and does not tug at our own financial purse strings.
  3. Commercial real estate could be a term to explain a property with five or more units. Commercial real estate is a vital element of any well-run business.
  4. Investment in commercial real estate is riskier and more expensive than investment in residential property – however ultimately it can be way more profitable.
  5. Commercial real estate could be a business investment driven by market economic factors, not so much the real estate itself.

Investing in commercial real estate can be a decent way to invest, however, you must make certain that you’re well represented by an experienced real estate broker, an attorney and accountant before moving forward since buying commercial real estate will have vital tax consequences and if you are buying or developing commercial real estate, it is very important to protect your financial interests with legal assistance. It’s going to sound surplus, however, the axiom location, location, location, is a very important factor in buying real estate property too. Here is the key to purchasing commercial real estate: the one with the most info wins.

The winners are the folks that acknowledge that the world of commercial real estate is continuously changing and understanding the nature of commercial real estate could be a precondition to the timing question.  They also understand property data and realize that information is the most critical aspect of any transaction. In other words, the key to successful buying commercial real estate is maximum market and property information.

About Commercial Real Estate

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Jun
05

Tips for Becoming an Effective Real Estate Agent

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Real Estate Game – Becoming an Effective Real Estate Agent

The real estate game is a very competitive one. If you do not man up, you can easily get blown away by the competition. There are 1000’s of agents all over the country fighting for pole position, trying to represent the interests of potential clients every day. These clients want the best of the best.  They are always on the lookout for agents who are effective and who offer a wide array of great services.

Here are some tips that can help you become an effective real estate agent.

  • Negotiating Skills

Negotiating skills are a crucial component for any serious-minded agent. Negotiation includes bagging the best price for your deal and also ensuring your commission part works out as well. Sterling negotiation skills aligned with effective communication abilities are important.  And this actually begins when your first potential client steps on the scene.

It is vital that you sell yourself as an effective agent first to the people that you want to do business with. Then you can continue the negotiations with potential sellers over the phone, by email or in person. Getting a buyer to sign a contract is a daunting task, one that only a good negotiating agent can win.

  • Ask for Referrals

Never take it for granted that your clients would automatically refer people to you. You might have done a good job. But they need to be reminded. Do not think that this is awkward. Most clients would do this for you without too much thought if your reputation is a good one.

If you are avoiding this, it means that you want to spend 1ooo’s of dollars in advertising and marketing instead. And with that there is no guarantee that it would be as effective as asking for new clients from previous ones.

  • Get on the Internet

Never believe the old-timers and think you can make this business work without leveraging on the Internet. The world has gone digital and you need the Internet to compete favorably in today’s real estate market. You will need to build a website, use social media, learn how to upload attractive pictures of your listings and get a hang of SEO optimization as well.

There would come a time when it would be hard to get your marketing out the door because you are occupied with other things. So you need a virtual assistant working for you overtime, without pay 24-7 and 365.

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Jun
05

Advantages of Buying Over Renting

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Although there are advantages to renting, the rewards of purchasing a home far outweigh the pros of renting. The most basic of pros for buying a home is equity in the home that you are building. Essentially, as you make your mortgage payments and the more the home value increases, the more money you are “saving.” Owning a home also tends to represent the Canadian way that provides you a place of your own, and is a representation of permanence.

  1. Building equity is the strongest argument for owning a home versus renting. Mortgage payments decrease the amount of money you owe on a home and you can also consider your mortgage as a forced savings plan. If you pay for rent you are actually paying a mortgage for someone else and creating equity for them. Why do you want to create a savings for someone else?
  2. Tax benefits for homeowners include being able to save on taxes.
  3. Homeowners can always renovate, change and customize their home; whereas, if you rent you are at the mercy of what the landlord will let you do to the home. It is always fun to create a living style that is all your own. You can paint the walls any color you wish and hang pictures where ever you want. You can knock out walls, add floor space, carpet and redo the kitchen or bathroom. In a nutshell, you can do whatever you want with your own home.
  4. The stability you feel when you own a home is unparalleled. You know that if you lock in an interest rate your payments will not change. If you rent a landlord can increase your rent whenever they want and landlords may also evict you or sell the rented home out from under you.
  5. Home ownership contributes advantages for the future. You are continually building equity, but when you pay off your home, it is yours and no one can take it away from you.

Renting is a great place to start, but when you own or are buying a home you do have a sense of permanence and a place to just call your own. Home ownership equals building for the future, provides stability, and helps give you a pride in owning something. Home ownership also provides security for your family in knowing that they have somewhere to call their own.

Discover more about the joys of home ownership over renting today and see about making a move in your own lifestyle and budget. Then instead of tossing money out each month needlessly on rent, you can be saving and investing in your future.

Advantages of buying over renting

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Jun
05

Tips in Selling a Property – Dress Your House to Sell

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Dress Your House to Sell

If you want your house to sell and sell quickly, you need your house to shine. You may be happy with your decorating style and it may be great, however, potential buyers may not agree with you.

In order to effectively sell your home you do need to follow some tried and true principles.

  1. First and foremost you must de clutter your home. Walls are filled with family decorations, but when selling a home; you need to depersonalize your walls. Put away your priceless belongings and clean your closets. The appearance of organization is crucial when trying to sell your home. Clean out closets and store unused clothes in boxes and put in a storage unit. You want your closets to look organized.
  2. Box up decorations, dishes used sporadically, family photos and knickknack collections. Things that you will not need to use while selling your home should be packed. For your own security, be sure to mark your boxes clearly. A note to remember when dressing your house to sell is to remember that the seller wants to see your home, but not your personal belongings.
  3. If furniture is frayed or horribly outdated, cover it with inexpensive furniture covers. Move heavy couches and chairs away from windows and avoid blocking doorways with furniture.
  4. Hire someone to fix those little broken items in your home. These may include leaky faucets, light switches that do not work, and toilets that sing.
  5. Paint rooms that are in need of painting and replace hardware such as door knobs and cabinet handles.
  6. Purchase new towels for bathrooms, take magnets off the refrigerator, and clean kitchen counter-tops. A good rule of thumb: less is more.
  7. Have the carpets cleaned professionally and use area rugs to emphasize room decor.
  8. Leave your home when potential buyers come over to inspect your house. There is nothing more disconcerting than a home owner hovering over potential buyers.
  9. Use a professional stager. These employees will come in a help you decorate for selling. Generally they use you own items, but do charge a fee for their services.
  10.  Think “curb appeal” and do a little landscaping. This doesn’t have to be extensive and expensive, either. Mow, do some weeding, plant some flowers and spread some mulch, if nothing else! Then drive by: how does it look from your car? Would you get out taking a closer look around?

Look at your home as if you were the potential buyer. You want to see the size of the rooms and imagine your own possessions on the wall and shelves. Take away those personal expensive items that might be of interest to a buyer and keep everything tidy, clean, and organized.

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Jun
04

Rent-to-Own – How it Works?

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The dream of home ownership is not impossible even with little or no down payment or distressed credit. You can find homes that an owner has for sell and who would be willing to rent or lease you the home. Negotiate the purchase or rent-to-own contract that will allow a portion of your rent to go to the down payment. Find the right company to help you with this option of home financing or use a real-estate attorney to set the contract in motion.

  • It is possible to rent or lease with option to purchase a home with little money down. This type of home purchase is also known as rent to own, rent option to buy or lease with an option to purchase.
  • There are companies or real estate brokerages that specialize in this type of home purchase and will guide you through the pitfalls and legalities of rent-to-own purchases.
  • Negotiate with the seller to have a portion of your rental payment go toward the purchase. You may be able to specify up to 50 percent of your rental payments be the down payment or equity of the home. To have a portion of your rental payments go toward purchase of the home you may need to follow several guidelines.
  1. Pay your rent on or before the due date. If you pay late, no credits will be issued for that month.
  2. Maintain the home. You will be required to do renovations, repairs, and upkeep that will build equity in the home. Major repairs will always be the responsibility of the owner, but your maintenance attempts will go far in assuring the landlord of your intent to purchase.
  3. Many contracts require a non-refundable payment of two to three percent. Negotiate to have this percentage go toward the purchase of the home.

If you enter a rent-to-own contract, be aware that the monthly rental price will be a set price and the non-refundable payment is typically a first and last month’s rent payment. Set up the contract to have the option payment go toward the purchase price of the home.  Rent-to-own is a very viable alternative to traditional bank mortgage payments. It is a way to help potential home owns find the home of their dreams even if they do not have the traditional five to ten percent down payment. Often rent-to-own contracts overlook credit problems and use the non-refundable option as security.

The Concept of Rent to Own Homes

If you plan to own a home but are unable to obtain financing this time, leasing a home with an option to purchase may be your best option. A lease to buy can make your rent money work for you instead of making your landlord rich. Typically rent to own homes offer rent credits that reduce the final purchase price over time.

Here’s how it works:

A home is made available via a standard lease with one important addition of an option to purchase that home at an agreed price over a specified time period usually one or three years. In order to avail that option, the renter/buyer must pay a one-time, NON REFUNDABLE, fee called the option consideration. The exact amount is negotiable, but it is usually ranges from 2.5 to 10% of the purchase price. A fair contract will credit the buyer 100% of that option consideration upon closing of the sale. Additionally, a negotiated percentage of all rent payments should be applied toward the purchase price of the home. Other typical terms and conditions one might expect to find in a contract which is as follows:

Equity Building

In order to receive a rent credit of 50%, time is of the essence. You MUST pay your rent on or BEFORE the due date of your lease, typically the first of the month. This means it must be received by the lessor (landlord) on or before the due date. Any payment received after the due date will result in a 0% rent credit for that month, a late fee may apply and you will not be building any equity.

Regular Maintenance

Maintenance is the responsibility of the Tenant Buyer. You are now renting to own and homeownership requires regular minor maintenance, which includes things like broken windows, clogged drains, peeling paint, broken appliances, burnt out bulbs, lawn work/snow removal, etc. If any major repairs are required to ensure habitability, the owner remains responsible.

Option Consideration

You need to have Option Consideration, which is typically 2.5% to 10% of the purchase price of the home. It is a non-refundable payment, of which 100% is credited toward the purchase price, which binds the lease purchase contract.

Here’s an example transaction:

We have a nice 3 bedroom, 2 bath single family home located in a near west suburb of Milton, Ontario in a great neighborhood with good schools and a strong community. It has been freshly painted, cleaned, and is ready to move in. The purchase price will be $315,000. Monthly rent payments will be $1,600 and you will receive a 50% rent credit of $800 per month. You need between 2.5% and 10% in up front Option Consideration. Let’s say your budget allows for $12,600 for Option Consideration. This equates to approximately 4.00% ($12,600/315,000). You will also need $1,600 for the first month’s rent for a total initial payment of $14,200.

It’s important to note here that option consideration is not a security deposit but a non-refundable payment toward the purchase price and is 100% credited toward reducing the price of the home.

Now let us suppose you paid all your monthly rent on or before the due date and you choose to buy the ‘rent to own home’ at the end of the 24 months lease purchase contract. You will have $31,800 in equity before even you own the home. Here’s you do the math:

– Lease Purchase Price – $315,000

– Less: Option Consideration paid at lease signing – $12,600

– Less: 50% rent credit of $800/month x 24 months – $19,200

– Net Purchase Price after credits – $295,800

You started with $12,600 and by paying your rent on time your equity position grew more than 152% (another $19,200) for a total of $31,800 with 24 months. Not a bad deal! Many people find it nearly impossible to save $19,200 in two years with all the costs of living constantly on the rise.

What’s the catch?

Now you may be thinking, “OK, what’s the catch? This sounds too good to be true.”

Answer, there is no catch.

Possible reasons for landlord/seller for entering into rent to own agreements

  • Needs to maintain ownership for at least one year for tax purposes.
  • Unable to get a fair price due to local conditions.
  • Tired of doing frequent maintenance.

Advantages for the tenant/buyer

  • Tenant becomes the Tenant Buyer through rent to own arrangement.
  • There is an immediate sense of pride in home ownership.
  • Tenant Buyer adds value to the community.
  • They take proper care of the property having feeling of ownership.
  • Goo feeling that rent money is working for them
  • Reduction in the purchase price.
  • Building equity in home ownership.
  • Initially, no bank or lender involvement.
  • Buying time to improve poor credit history.

Rent-to-Own – How it Works

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Who We Are?

At ProClient Brokers, we pride ourselves on being able to provide brokerage, franchise sales, business sales, and real estate services to our valued clients assisting in sale and acquisition of properties in Toronto Area, Ontario and beyond. As brokers, we understand what makes a good deal in a transaction.
Our due diligence, extensive and thorough research about properties are what set us apart from other companies in the industry. CONTACT US for any professional assistance. ..