Rent To Own - Done the right way!!!

Submitted by alfonso@JAAGproperties.com on Thu, 11/12/2020 - 22:47

JAAG Properties has been operating successful Rent To Own programs for over the last 7 years.
What do you know about Rent To Own?
What do you what to know more about ... please enter your questions, comments and more below

- March 16, 2021

Creative real estate in Alberta will be more prevalent going forward. A lot of bruised credit out here.

1. What are your thoughts on using RTO as one of many strategies vs your bread and butter?

2. Also...what are your thoughts on using an RTO if a) motivated seller will finance the deal and b) the market will be flat to down appreciation wise?

This model would be more about helping out a trapped seller and aquiring property/equity for zero down as opposed to getting an investor to buy and finance the deal because of high appreciation and ROI.

Appreciation is an unfamiliar word in Alberta.

Quite the question I know!

- March 16, 2021

Yes, you could have the downpament saved ... however your credit score and/or income level may not be acceptable for a lender. Yes a downapayment is required in our program.
I would be weiry of any RTO program that doesn't require a DP

- March 16, 2021

I will only address the appreciation part right now...and me I make my money in the spread between purchase price at acquisition and selling price at disposition. AKA appreciation.
So before I put ads on Kijiji in any town where I might want to set up RTO deals, I first check the appreciation over the last 5 years...and if I don't see at least 4% per annum...I'm outta there.
We bought a single family home in July 2017 in Kitchener for $365,000 and we just sold it for $552,000 on the open market. That's 51% appreciation over 3 years...or 17% per year. Maybe you should invest in Ontario Nathan...

- March 16, 2021

What kind of work history would someone have to have? Is this an option for young people to get into owning property? Can an RTO be done with more than one owner? e.g. two friends buying a house?

- March 16, 2021

I've never really understood rent-to-own. Why would I rent-to-own if I already have a downpayment for a mortgage?

I do have to put down a downpayment right?

- March 16, 2021

@Paul we typlically look at 2 years work history, consistency is key!
Rent To Own is defintley an option for young people to get into owning property and learning about their personal finances
Yes a RTO can be done with more than one Tenant Buyer.... we have had several friends partner up !

- March 16, 2021

Myslef and my company have been operating successful Rent To Own programs for over the last 7 years.
What do you know about Rent To Own?
What do you what to know more about ... please enter your questions, comments and more below

- March 16, 2021

We sold a previous home through RTO. The couple that bought it didn't have enough money for a down payment so they paid rent plus some extra that was put toward their down payment. In two years tthey had enough in the DP fund to arrange a mortgage and bought the house.