How much does investing in real estate cost?
What can I anticipate for a return for investing in real estate?
How secure is my real estate investment?
How long is a typical lease term on a property?
What does a typical tenant-buyer look like?
What is your tenant-buyer qualification process?
How does the real estate investing program work?
Is my real estate investment guaranteed?
What if the tenant-buyer can’t qualify on lease maturity?
Who manages the property?
What if I need to evict due to missed payments?
How to invest in Real Estate (Rent-to-Own)
Buying a Lease Option Property (Lease to Own / Rent to own) is the same as purchasing real estate rental property. Depending on your portfolio, down payment may be as little as 20% plus standard Lease Option Closing Costs.
With a 20% down payment, ROI is generally over 30%. A 25% down payment will usually provide a return of 25% or greater.
Your investment is as secure as your primary residence; 100% ownership.
Contracts are generally between 1-5 years. We work with a 3rd party credit consulting firm that provides a secondary assessment to determine the appropriate length required for a tenant buyer to qualify to purchase the property .
Most of our tenant-buyers are current home-owners that came across some unfortunate circumstances such as job loss, failed business venture, accident, disability, and/or illness. These mishaps usually prevent being able to renew a mortgage, or are the early stages of foreclosure (pre-foreclosure). We also have many clients that have saved their mortgage down payment, but have not been educated on credit and require a structured plan to transition them from renter to homeowner.
In order to qualify for the program, a tenant buyer must meet the following criteria:
- Must GDS/TDS the lease payment based on CMHC ratio guidelines; 35/42. If the tenant-buyer is an above average profile, we may use 39/44.
- Client must be able to verify income.
- Clients income must be consistent
- Client enters into a designated credit mentoring program
- Client story must make sense and clearly illustrate reason(s) for current circumstances.
First we go over the tenant-buyer applications and work through the qualification process with the ones that meet our program standards. Once a tenant is qualified, they complete a profile; matching homes are then located, and investors are contacted. After investors have reviewed the tenant-home package and an investor agrees to work with the tenant, we take the tenant to look at homes that match their profile needs and their approved price range.
No investment is guaranteed. However real estate is known to be a very secure investment. We properly qualify each tenant buyer, and complete a dual credit assessment to ensure a higher likelihood of success.
You have options.
- You can contact our team so we can determine how much more time is required for tenant buyer to qualify.
- You can contact us and we may have an investor that will take over your contract. You simply sell for the price as per the exercise option, and transfer option credit to new investor on close.
- You can also choose to end the lease and list the property for sale
We allow our investors to choose. It can be self-managed, or you can seek out the services of a Property Manager. Amansad Financial Services is a 3rd Party Lease Option Agency. We focus on providing great opportunities in Alberta to investors. We do not manage the properties. We do however have great relationships with property managers and can provide you references.
Depending on whether you hired a property manager or are self-managing the property will determine how you should proceed. If you hired a property manager, contact them for assistance. If you are self-managing your property, contact the designated law firm that drafted the lease. They are your legal representative for the duration of the lease. Amansad Financial Services has relationships with various property managers, so if one is required, please inquire and we’ll provide information for you to make your final decision on desired agency.
If you would like to receive regular email updates on available opportunities to participate as an Investor, please Contact Us, and you will be contacted within the next 24 hours.