Welcome to Toronto.iLease-a-House.com for all your lease to own needs
Current Times Call For
New Approaches
To Buying, Selling & Investing in Real Estate
(Updated January 2010)
The recent financial crisis and current multitude of investment opportunities is causing many to look at fresh and new approaches to the traditional Real Estate market.
Buyers are finding it increasingly more difficult to get bank approved financing, sellers are losing money on sales just to stay above water, and investors are losing money on their real estate business opportunities.
The impact has been felt by everyone right down to Agents and Brokers. A recent study showed that as many as 300 thousand listed homes in Canada did not sell last year.
We interrupt the doom and gloom for some good news!
Through all the market turmoil, one niche strategy has seen a dramatic increase in attention by solving many of the challenges posed by the current economic and social environment.
Toronto sellers are recieving their asking price while their mortgage, taxes and insurance are paid in full. Their properties are well maintained by buyers who are interested in increasing the value of the property.
Buyers are living in houses while they evaluate the property and shop for the best financing and terms. No longer simply renting, now renting to own while automatically reducing the purchase price.
Investors are increasing the cash flow potential of all thier real estate investments, and Real Estate agents are finding alternatives solutions for common problems buyers and sellers face that are limiting their success.
Click the box that best describes yourself to get free lease to own Toronto information catered to your interest, or read on to learn more about the problems and their solutions!
What is Lease to Own?
It is sometimes referred to as rent to own, lease purchase, lease option, or rent to buy. It belongs in the same real estate category as vendor financing.
Using lease to own as a real estate strategy, buyers can enter into a lease agreement on a house for a
set period of time. In addition to the lease agreement, is the lease option contract which gives the tenant the option to purchase the house prior to the end of the lease
agreement for a predetermined price.
We can all agree that sub-prime lending was not the solution to this problem. We also know that simply refusing credit based on excessive loan requirements only solves the portion of the problem that banks are interested in.
iLease-a-House.com believes in the right for every individual to own real estate equity.
So the obvious questions right now are ... Is there a way to buy a house without bank financing? Is it even possible to buy a house when you have bad credit or a below average credit score?
Unfortunately, most people will require bank financing at some point in order to purchase a home. The average mortgage amount is roughly 3 times the household income. The purchase price is simply too large to avoid having a mortgage.
For Toronto buyers right now it can be extremely challenging to get bank approval for a home loan. This way buyers get to live in the house first. They can experience what it is like to live in the house, the neighborhood, and so on. Meanwhile, if credit is an issue, the buyer has the term of the option consideration to shop around for the best mortgage rates and correct any credit report blemishes. If they decide they want to go ahead and buy the property, they know exactly what price they will pay.
Lease to Own is NOT limited to those with credit challenges!!
Banks are offering fantastic interest rates, but require 10-25% down, with excellent credit. The desired effect of making homes more accessible to first time buyers or those with lesser incomes by lowering interest rate and increasing ammortization, has been offset by the "recovery" of sales prices, which of course results in higher mortgage payments.
This is a great time for high income earners in Toronto who have an extra $50k to make a business investment, but what about the middle to lower income individuals? These are not people with credit problems. These are every day people, who want to better themselves, can make the payments, yet somehow are not qualified by the banking system.
What about the self employed entrepreneur and sole-proprietor? In exchange for pursuing their dreams, they are greeted with scepticism and hoops to jump through by the traditional financial institutions. These potential buyers are often asked for 25-30% down and a reduction of qualifying income applied to their application.
The good news is that with lease to own, you can defer bank financing for up to 5 years!!!
You may avoid bank financing entirely if the seller is in a position to vendor finance after a successful lease to own agreement with the buyer. This real estate strategy may be the answer that many sellers and buyers are looking for to tackle the 2010 real estate market in Toronto
It means that the dream of home ownership is closer for these buyers by using the lease purchase real estate strategy.
Does the rent to own strategy benefit sellers as well? 
Right now, anyone trying to sell a house will appreciate just how challenging it can be. With a lack of bank approved buyers in the market, prices have fallen drastically. Many sellers have tried selling their properties as "for sale by owner" after giving up on their Realtors. For the successful FSBO, saving the 5-6% real estate broker fee is typically the goal. The challenge of finding a qualified buyer still remains, therefore no problems are solved. More importantly, the FSBO seller becomes increasingly frustrated due to the lack of tools and exposure. If an real estate agent cannot sell a house with their specifically enhanced tools created directly for brokers, how well can a FSBO "do it yourself" method compete?
Even in times where the real estate market is strong, we find times when sellers need to carry 2 mortgages. The are many reasons this can occur, however the point being that we can all imagine the stress this puts on a family. The first option is to wait out the market and hope that someone will purchase the property at your desired asking price, while you cover the payments, taxes and property insurance.This often results in missed payments and other undue stress resulting is credit blemishes that can haunt the seller for years to come.
The second option is using the lease to own creative real estate strategy to generate income from their properties as they find buyers who are willing to lease their house from them. By choosing rent to own, the seller opens increases there market up to 25% by exposing the home to renters who are also considering purchasing. More importantly, instead of your house sitting empty for months on end you can generate rental income now and turn the property into a positive cash flow property.
Even better is that you have an extremely high chance of the person leasing the property wanting to exercise their option to buy before the end of the lease agreement. The good news for sellers is that as long as you have negotiated a fair price at the start of the agreement you can be fairly certain that they will go ahead and want to purchase the property.
So the lease purchase creative real estate strategy can be extremely effective for both buyers and sellers.
It is definitely worth considering as a sound real estate investing strategy or business venture.
As always, the most critical element for rent to own success is to have the best information available. There are various options available to buyers and sellers when it comes to creative real estate. You can purchase iLease-a-House.com's mentoring, and consulting packages found in the products section of this web site, or you can purchase do it yourself real estate investment training catered to rent to own or lease to own at The Lease To Own Store.
If you are an investor then you will also want to find all information on how use the to lease option strategy for more positive real estate investing. Investors can secure good rental returns from buyers willing to rent to own and have a ready made buyer for the property at the end of the lease period. This is a key real estate investing strategy being used right now to turn real estate investments from negative to positive cash flow properties.
Whether you own rental properties and are tired of the associated management hassles, or you want to increase the cash flow potential from your flips, or you are in the process of liquidating purchased homes for equity, rent to own is a viable option.
Traditional marketing methods for real estate are no longer as effective. By control property, not owning it, the smart investor is able to capitalize on the cash flow to create a lucrative business opportunity.
For the potential real estate investor looking for an established business opportunity, iLease-a-House.com is recruiting rent to own investors in all major cities in the US and Canada. Use the Contact Us form or email info@ilease-a-house.com for more information.
If you'd like a free consultation on how lease to own can help you with your specific needs, click the button below that best describes you, and register in our database.
