If you are looking to create an income with real estate investments, using lease options as your vehicle, then the Investor package is right for you. Investors have an opportunity to make money by introducing both homeowners and people that want to get into homeownership to their personalize lease option site. From the database that we maintain of properties and clients, investors can play matchmaker and work their leads in putting together optionees and optionors and create straight or sandwich lease option transactions.

The hardest part in developing a real estate business is generating your database. This takes time, money and great sales skills. Because we at Canadian Homeownership are creating a database of both properties and optionees, and giving you a personalized website to work with and market, all you really have to do is obtain business cards, and monitor the site's listings and play matchmaker.

Realistically, you need to sign up, have a laptop or computer with internet access and a cell phone. Additionally you'll want to create business cards to hand out (adding to the professional image), but we even provide you with templates to use for this.

A license is not required as long as you sign proper legally binding contracts and agreements, such as a lease and a purchase and sales agreement.

Yes. Many real estate investors have worked with lease options for both residential and commercial properties. As with any real estate investment, you need to have a goal in mind. You'll be using lease options as a vehicle to achieve this goal. Then you need to create a plan of action. Once you have an idea of what it is you want to accomplish, make sure you have the knowledge of how lease options work (you can take a Lease Option Retreat {link to seminar section of site} for the first time or as a refresher to brush up on your knowledge and skills), you feel confident negotiating contracts and terms, and have a passion to help optionors achieve their goals (sell their home) and optionees become homeowners. If you know what you are doing and can educate sellers/homeowners and buyers/optionees about how lease options work and what the benefits are to them, then yes, it will be a viable way for you to make money.

This depends on you. Consider that an optionee you have for the property will need some time to repair their credit or save for a down payment, or both, so a term under one year may not be of benefit to them,

There should not be any. The seller/homeowner pays half and your buyer (the optionee) pays the other half, if you have written the agreement properly.

It all depends on the deal. If your monthly cash flow is strong and you have a long lease option from the seller, you might choose a not so qualified tenant or buyer/optionee. If your largest profit comes from the difference between your sale price and your option price, you might choose to hold out for a qualified buyer.

You will have to fix it. Keep in mind that you are dealing in higher price houses and quality people when working with optionees (not necessarily tenants). This will not be near the problem it is with cheaper houses.

Anyone looking to get started as an Investor {link to investor page of Canadian Homeownership} is strongly encouraged to attend a Lease Option Retreat {link to lease option seminar page} so that they get a good basis on how to qualify and work with optionees. When you sign up as an Investor, you will also be given access to different resources that can help you qualify optionees.

In addition, Eminence Financial {link to their website} offers a great course on how to get you prepared to work with real estate investments. This information you can take and apply to your optionees to help them qualify.

It is perfectly legal, as long as you have a written agreement or contract with the seller, you do not need ownership of the property in order to sell it, rent it or option it. Renting or selling someone else's property without a written lease or option agreement is illegal.

There are various benefits. You have the decision to work your business as just introducing people to Canadian Homeownership's services and receiving referral income or you can actually work with people and put together sandwich lease option transactions. Should you decide to work with the latter, you can benefit from:
Buying properties at a fixed price
Not having to put much of your own money into a transaction
You don't have to own the property, you just control it during the deal
Monthly cash flow
Helping solve people's problems and creating win-win-win situations

When you're working with more than one party in a transaction, as you would be in a sandwich lease option, you can run into some hurdles, but all can be overcome. For example, the homeowner may want to change the deal or terms when it comes time to exercise the option. Because you also have an optionee to work with, one party wanting to make changes to the agreement you have with them may affect the other agreement you have with the other party. In addition, if your optionee wants to purchase the property, you must also exercise your option or have the seller agree to an assignment agreement. Should they not want to accept an assignment agreement, then you must qualify for the property in order to buy it and then re-sell it to your optionee. As an investor, you are doing the majority of the work, as a transaction engineer. But as such, the rewards are great for doing so. You need to weigh the pros and cons and see if this is the right business for you.

The market will indicate that. This is your biggest protection device against default and vandalism. The general rule is about 3% to 5% of the final selling price or two monthly payments. For example, if the monthly payment is $2,800 and the final purchase price you've agreed upon is $350,000, then you can ask for $5,600 up to $17,500. This amount will also depend on your optionee's situation since most optionees will be looking at lease options to help them save for a down payment, you may look at something closer to the 3% range.

This will depend on the deal and on what your end party wants. If you're working with a tenant that wants to rent and can afford what the property is demanding on a monthly basis, then you may just decide to rent out the property once you've arranged for a lease option with the homeowner. But you have to think of what the benefit will be for you. Are you trying to acquire property for yourself? Are you planning exercising the option at the end of the term if you have only a tenant renting it from you? You will also have to consider that a tenant may not maintain the property as much as an optionee who has the intent on buying would.

Typically, as little as possible. Yet, it is not a wise choice to destroy a decent deal, because you had to pay a few hundred dollars more. Remember, you will get it back shortly from the tenant at rent deposit/security deposit (lease option with a rental) or from your buyer/optionee as their option deposit/option money (sandwich lease option).

This is an option however it can get messy should something happen to the homeowner. For example, since you are not the owner of the property and are in a lease option agreement with the owner, yet are committing to sell the property in the rent-to-own agreement with your tenant, should the homeowner lose the property, you can have a big liability issue on your hand with the tenant who is in a contract to buy it from you. We wouldn't recommend you structure a deal this way.

This depends on what you and your optionee agree upon. This can range from a few hundred dollars a month up to the entire monthly payment (since the credit is really coming out of appreciation of the property). You'll want to use the monthly credit as an incentive to have your optionee be willing to make higher monthly payments.

Possibly, if the seller has a lot of equity or you are paying a higher price that you would like. Do not get greedy though; your profit should be in the deal without the monthly credit.

That depends on your personal situation and other factors. If you locate a house with very little equity, it might still be worthwhile to lease option. This will allow you to get the non-refundable deposit from your optionee and the monthly spread. If you cannot get much spread on the price or the monthly amount, and you do not see at least a $3,000 deposit in sight, you should walk.

There is no harm in having the other party show any agreements to his/ her lawyer as long as you have drafted the contracts properly. We have provided you agreements to use as part of your Investor package, however we recommend that all transactions and their agreements are reviewed by your lawyer since every deal will be different. As such, there is no harm in having the other parties have the agreements reviewed either.

Canadian Homeownership wants to make sure that people using our services are who they say they are. As such, anyone listing a property should be the owner of that property. Since we cannot guarantee this, then the first thing you should do once you have located both parties is to verify that the owner on title to the property is the person you'll be signing a contract with. Once this is verified, then you can proceed to sign a lease option agreement with the homeowner and then with the optionee. To commit the optionee and not to bind yourself in an agreement with the homeowner, you may obtain a commitment letter from the optionee or an option deposit agreement with them.

All the legal issues that we discussed in the legal aspects chapter should help you with this question. There are ways to protect yourself legally from all perspectives, whether you are the seller, buyer or tenant. For this situation you could, for instance, put the title documents in the hands of a third party.

Yes, you should try, but if he/she refuses you can try and get around it in other ways, such as signing an affidavit for the whole contract.