presentation on lease option for potential tenant

HAPPINESS INSPIRATIONRENT-TO-OWN

(LEASE OPTION)

Thomas Wongwww.happinessinspiration.com416-806-9568thomaswong@rogers.com

www.happinessinspiration.com Thomas Wong

Who am I?

• Thomas Wong – The Lease Option Guy in Brampton

• A real estate investor focuses on Lease Option projects in Brampton…Kitchener/Waterloo (over 25 projects in the last few years)

• Do fix and flip projects • Have rental properties• On track to do at least 2-3 projects a month• Have been a process/quality improvement professional

in my previous life


What is Lease Option?

• Rent-to-own your home

• Lease with option to purchase

• The program– Small initial deposit (part of down payment)– Monthly payment (partly rent, partly toward

down payment)– Option to purchase the house at the end of

the lease term


Benefit of Lease Option –Tenant

• Opportunity to buy a house under difficult circumstances:– Not enough down payment– Bad credit or no credit history

• Lock in purchase price when saving up for the down payment

• Pride of ownership and flexibility in upgrading the property


Benefit of Lease Option –Landlord/Investor

• More or less worry free tenant– Option premium– Tenant pride of ownership

• Saving in selling cost• Lock in profit and cash flow• Improve cash flow• Secure investment• Helping people and earn money

(Feels Good AAh!)


• Focus on Win-Win relationship• Emphasize on making sure tenant can buy the

property at the end of the term• Provide mortgage broker support and

guidance to the potential tenant• Involve tenant in the renovation process, it is

almost like buying a new home for the tenant• Ensure cash investors have reasonable return• Professional project management

Happiness Inspiration Way ofLease Option


A typical rent-to-own client

• I cannot or do not want to put 5% to 25% of the purchase price as down payment to buy the house.

• I have poor credit history for getting a good mortgage to buy the property.

• I do not have steady income record/history to get a good mortgage for buying the property.


A typical Lease Option Case


A typical Lease Option CaseAnalysis of Rent-to-own/Lease Option for Renter/Home BuyerDescription of the property: 45 Hansen - 32Type of Property: Condo

Current Value of the Property $ 187,000

3 3

3 Year Lease Opt.

Initial Deposit $4,000

Monthly Rent $1,157

Monthly Option Premium $234

Monthly Condo Fee $311

Total monthly payment $1,702

Addition Monthly Option Bonus $200

Purchase priceat the end of lease term 216,476$

Down payment credit at purchase 19,624$

% Down available at the end of Lease 9%

Monthly mortgage payment after purchase $1,268.32

Total Monthly payment after purchase (incl. condo fee) $1,579.32

Interest rate 6%


What is the catch?

• It is a commitment.

• You need to like the property.

• If you do not exercise the option or default in your monthly payment, the contract will be voided. The seller will keep the option premium.


What should you look for?• Property is in a good location and will

appreciate in value• Reasonable arrangement for future purchase

price• Reasonable portion of the monthly payment

goes towards the future purchase price – enough down payment

• Flexible buy-out schedule• Reasonable arrangement during lease term• Make sure that you can afford the property


How can I qualify for the program?

• Fill in application form– Current employment

(steady income)– Current landlord contact information

(well behave tenant)

• Credit report and consultation with our mortgage broker

– Ability and willingness to improve credit situation within a reasonable time frame


What is the next step?

• Make sure that you like the property

• Seek legal advice on the lease with option to purchase agreement

• Submit an application form and provide reference information

• Consult with our mortgage broker

• Sign contract

• Move in and Enjoy!!


We turn real estate opportunities into

Happiness Inspirations


Questions & Answers


Sample Pictures of Projects

presentation on lease option for potential tenant

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