Lease Option Real Estate Investing
There are many strategies for investing in real estate. Few of them are good for every kind of market. When the markets are low, it's a good time to buy and hold property. When the markets are high there are opportunities to buy property low and then sell it for a quick profit. A savvy investor will have a number of techniques for adapting to the changing market in order to find ways to both make a profit and protect existing investments.
More traditional means of investing in real estate tend to be considered safer.Prospective real estate investors like to start and even where many seasoned investors like to stay today. This might involve finding a good investment property” perhaps even a multi-unit residence” and renting it out, making enough profit to cover the mortgage, insurance, taxes, utilities, etc. and sitting back and enjoying the monthly cash flow. Others prefer to find an investment property to fix and flip, or rehabilitate as some like to call it, and then sell for a much higher price. Unfortunately for these types of investments, there is much that must come together successfully just to make a profit.
Some people may make some great profit on a few deals, only to lose it all on the next. Perhaps at that point they will be lucky enough to find a savvy investor to buy their failed investment and save them from bankruptcy. Even if partly successful, there are many headaches with these types of deals such as dealing with bad tenants, spending weekends on changing light bulbs or unclogging toilets, dealing with contractors, or the worst” not finding a tenant, or not getting enough rent and working with a negative cash flow. Personally, I don't need these headaches, and believe there are much easier and much less risky ways to invest in real estate that are also extremely lucrative.
First of all, prospective tenants need to be properly screened” verifying income, credit situation, employment, and so on. They need to be qualified for the lease as well as the final purchase of the property. Secondly, the real estate needs to be located in areas that provide strong investment opportunities with proven inflation and stable employment opportunities. We need to be certain that both the tenant and property are solid investment vehicles.
With lease to own program, the tenants are screened and verified to ensure that they will be able to afford the monthly lease as well as the final purchase price before even closing on the property! This means we have the investment vehicle and exit strategy in place before any transaction takes place. Furthermore, we do all of the research to determine competitive lease rates, inflation rates, hot investment areas, and so on. Of course, we don't have all of the expertise ourselves” we rely heavily on strategic partnerships across Canada to ensure we have experts and up to date knowledge in the best places to invest across the country. There is much that has to come together make these opportunities available. Fortunately, for you as the real estate investor, we have done the heavy work for you. We have made it as easy as possible for you to invest in real estate and get the kind of returns that only real estate can offer. Our opportunities will produce a minimum of 20%. By providing the minimum down payment for the property, we will put your name on the title and pay you a monthly cash return as well as pay out when the tenant exercises the option to purchase at the end of the lease term.
Of course every investment has risks and you will want to be fully aware of them before investing a cent. The biggest risk would be investing in real estate without knowing the risks, or just plain lack of experience.By investing through our program you are investing in experts who have done all of the research on the investment for you.We have mitigated every possible risk and through our program they are narrowed down to just a few:firstly, if the tenants walks away from the property.This is highly unlikely, since the tenant would also be walking away from their down payment as well a large sum of money they would have saved in a mandatory trust through the monthly lease option payments.Furthermore, if they do actually walk away, we have ensured that the property is in a sought-after neighbourhood and city, in which case we will find another lease to own tenant and take another down payment.Secondly, if the tenant is not able to qualify for a mortgage at the end of the lease term, we may extend the term until they qualify, or in a worst case, ask them to leave and find a new tenant.
These continue to come through and produce solid returns in any economy.Consider both possibilities”when the economy is good, people have money to spend and will be seeking home ownership.When the economy is in recession, lease to own may be the only option left to own a home after credit problems or bankruptcies.Either way, our investments are cash flow positive with a fixed purchase price based on inflation.
With our lease to own program, investing in real estate could not be easier. These investments are even RSP-eligible. Imagine seeing your RSP produce a 20% return” and that only our minimum” we often see opportunities produce as high as 60%!If you are interested in the kind of low-risk, high returns and passive income that only real estate can provide then it behooves you consider our incredible opportunities for investment.
World Wealth Builders offers many unique, practical, out of the box real estate investor apprenticeship which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. You can attend Real Estate Millionaire Apprenticeship . To find out more, please go to www.WorldWealthBuilders.com/live.html
The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case
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