1. Turn Dead Lead into Dollars Presented by: Crazy Thomas, Lease Option Specialist

2. How are we doing? Superfantastic! 3. Who am I?

Thomas Wong The Crazy Lease Option Guy in Brampton

A real estate investor focuses on Lease Option projects in Brampton Kitchener/Waterloo(done over 30 projects)

Have done fix and flip projects

Have rental properties

Have been a process/qualityimprovement professional inmy previous life

4. What are we talking about?

Dead leads (potential clients who cannot buy a house)

• Not enough credit to get a mortgage

• Not enough down payment

• Cannot get on title for the house purchase due to family status changes

• Cannot verify income

• • Self employed without enough reported income

• • Not enough business history

DEAD LEADS 5. Do you want to make more $$?

Who want to make more money?

How?

We are here to help

LEASE OPTION SPECIALIST 6. What do we do?

Use Lease Option Strategy to:

Turn Dead Leads into Dollars

7. What is Rent-to-Own/ 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

8. The Differences amongRent-to-Owns

There are no regulated way of Rent-to-Own

Potential variations:

• Initial deposit requirement from tenant

• Amount of credit toward down payment each month

• How to establish future purchase price

• How to handle expenses during the term

• Types of contract:

• • Lease with option to purchase

• • Co-occupancy contract

9. Why Rent-to-Own? 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

10. Why Rent-to-Own? 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!)

11. Property or Tenant First

Tenant or Property First? (Chicken or Egg)

It is dependent on:

• Market conditions

• Investor preference

• Investor financial capability

12. Property First

Benefits:

• Buying below market value

• Time to pick and choose

Risks:

• Potential vacancy

• Not as easy to find investors to participate

Approach:

• Find Focus area and study well

• Learn to distinguish motivated sellers

• Learn how to look for value in a property

13. Tenant First

Benefits:

• Less risk in having a vacant property

• Easier to get investor to participate

Risks:

• May not be able to buy the property at the best price

• Time constrain

• Tenant may change their mind at the last minutes

Approach:

• Target market

• Advertise focusing on benefit to the tenants

• Good filtering system

14. Hows it related to you?

Your Dead Leads can be our potential rent-to-own clients

Once we qualify them, we will have a tenant first situation

What do you need to do?

• Simply introduce your Dead Leads to Bari and I

• We will do the rest of the job and get them into the rent-to-own program.Our investor team will buy the property for the rent-to-own client.

They will stay for a few years and then buy the house from the investor team

15. What do we need for aRent-to-Own project to happen?

To put a Rent-to-Own Project together, you need:

• A qualified Rent-to-Own tenant

• A good property

• Investor or investors to buy the property

16. How to make money in a RTO project?

There are 3 Key elements:

• Buy below market value (aimed at about 10% below market value)

• Rental income during lease term (look for property at a good capitalization rate, market rent v.s. market value)

• Property appreciation in value during lease term (look for property at good areas, target at close to 5% on average, set realistic expectation)

17. Whats in it for you?

For each successful referral, Bari will a share good percentage of his commission with

YOU!

• 25% of the buying commission (for the first 4 referrals)

• 30% of the buying commission (from the 5 thto 9 threferrals)

• 35% of the buying commission (from the 10 threferrals onward)

18. What can the tenant afford?

Based on their Gross Family Annual Income (32% GDS)

Based on their current budget for monthly payment.

$220K - $260K $2000 $260K - $300K $2300 $140K - $180K $1300 $180K - $220K $1600 Estimated Current Value of House for RTO Monthly RTO Payment 19. How to make decision on the property?

The decisions:

• Is the project attractive to the investors

• • Cash flow (DCR)

• • Return-on-investment (ROI)

• Can the tenant afford the property

• • Save enough down payment at the end

• • Affordable monthly payment

• At what price should we buy this property at

20. Sample pictures ofRTO projects 21. Questions & Answers 22. We turn real estate opportunities into Happiness Inspirations