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Tips on closing stubborn type of deal

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Real Estate Professional | 28 Mar 2016, 08:15 AM Agree 0
Many agents may be put off by this one increasingly popular type of deal but here is what you need to know to achieve success, according to one expert
  • Robg | 28 Mar 2016, 10:58 AM Agree 0
    Be aware that the issue is not getting the rent to own financing completed but getting the financing squared away after the rent to own contract expires.

    A lot more issues with these than you as a Realtor are typically made aware of.
  • John | 28 Mar 2016, 12:00 PM Agree 0
    Not very good article.
  • Hans | 28 Mar 2016, 01:01 PM Agree 0
    Coming up with 5% down and then having to pay extra on top of the mortgage is not a good deal, never mind all the ways you can lose your money! Stay away from this type of deal.
  • John | 28 Mar 2016, 01:35 PM Agree 0
    If you have 4% down yourself, the best way to get the LOWEST PRICE and the LOWEST PAYMENTS, is to borrow the other one per cent from a relative and if your credit is not good, get a co-signer.

    That way you get TODAYS PRICES and the LOWEST RATES
  • | 28 Mar 2016, 02:19 PM Agree 0
    CMHC requires RTO Contracts be structured a specific way in order to be acceptable at the time the mortgage is arranged. If not set up correctly from the start, the buyer can unknowingly be set up to lose their investment from day one. Please be sure to work with a licensed Mortgage Professional with a thorough understanding of the CMHC RTO rules when setting up a RTO for your buyers.
  • Maria B. | 28 Mar 2016, 02:28 PM Agree 0
    An absolutely useless articles, no help at all.


  • Matt | 28 Mar 2016, 05:50 PM Agree 0
    How and when, or how much I get paid has nothing to do with the advice I give to clients regarding RTO's.
  • | 29 Mar 2016, 11:07 PM Agree 0
    There seems to be a lot of erroneous information out there. If you would like to see all the components that are required in a legitimate, ethical R2O deal, please visit CAROP.ca. This is an informational site that explains how a R2O should be structured so the tenant buyer will have success at the end of the option term and be able to qualify for a mortgage of their own with a sufficient downpayment.

    The upfront option fee (downpayment) is added to the monthly rental credits (% above market rent that is required to save up the required downpayment over the course of the option term). The option fee that the tenant buyer puts down at the beginning of the deal does not give them equity in the property. At the successful completion of the term, the option fee and accumulated rental credits are credited (or refunded) back to the tenant buyer which makes up the required downpayment for them.

    This is not a strategy that any realtor should be involved in without specific training in lease options.
  • Gina | 03 Apr 2016, 04:40 PM Agree 0
    I would never recommend this type of purchase for my clients. There are several issues to be aware of.
  • judy | 03 Apr 2016, 10:30 PM Agree 0
    I have done rent-to-own in the past. I never recommend it to vendors in this day and age, where interest rates are so low. If a buyer has bad credit or can't even save a down payment, why does my seller need the headache?
    Most sellers who would accept these have an inferior product that is not a good risk for buyers or they are paying too much.
  • Larry | 06 Apr 2016, 01:31 PM Agree 0
    This article seems to imply that a Realtors only concern with the RTO, is their ability to collect their commission! That is not a good reflection of our profession.
  • Marcella Kammerer | 10 Apr 2016, 10:11 PM Agree 0
    I agree that rent to own is not good for the consumer hoping upon hope that they might be owning a home through this process. It is a gimmick that makes the Seller ahead of the game. Rarely is the renter able to save enough money for the needed down payment to actually close the transaction. I tell all my clients who ask me about this option to stay away!
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