- Joined
- Sep 2, 2007
- Messages
- 97
Basically you find a disgruntled Home Owner (Joe Seller) who can`t seem to sell his house. You contact him and tell him about how you can find a Rent-To-Own Tenant for him. All Joe must do is give you an option to buy his house 3 years from now for 200k. Initial Option Deposit of 10k and monthly credits of $300 per month plus market rent. You have a clause saying something along the lines, if you don`t have a TB buy such and such a time the option becomes null and void.. He likes the idea and you go to work and a few weeks later you bring a qualified/screened /serious TB to the table you connect your TB with a mortgage broker who he can work with over the term of the option. You assign your option to the TB for $5000. The TB does not have a problem with this assignment fee because he knows its going towards his purchase price 3 years from now as it says in the option agreement.. Joe Seller is happy because he has $5000 in his jeans plus an extra $300 per month plus rent and he does not see my $5000 fee for 3 years from now, plus my services were far cheaper than a Realtors.
Would my assignment fee I take from the T/B still be seen as partial payment for him through CMHC`s eyes when it comes time for the T/B to qualify conventionally?
I see the maximum assignment fee I would charge would be from $2500/5000 since that is what I see most T/B`s have. I still would let the TB determine that for me..
I will not be seen as a Realtor since I am simply looking for someone to assign my option too?
Obviously the seller would not let you tie up their house for 3 years. So is it possible to insert a seller clause in the option that says if i don't have a qualified T/B in 6 months time the option becomes null and void? When a qualified T/B comes to the table where both parties agree the 3 year kicks in providing the T/B does not breach the option to purchase contract in his duration of the RTO term.
Pick this idea apart please` any thoughts?
Cheers
Luke
Would my assignment fee I take from the T/B still be seen as partial payment for him through CMHC`s eyes when it comes time for the T/B to qualify conventionally?
I see the maximum assignment fee I would charge would be from $2500/5000 since that is what I see most T/B`s have. I still would let the TB determine that for me..
I will not be seen as a Realtor since I am simply looking for someone to assign my option too?
Obviously the seller would not let you tie up their house for 3 years. So is it possible to insert a seller clause in the option that says if i don't have a qualified T/B in 6 months time the option becomes null and void? When a qualified T/B comes to the table where both parties agree the 3 year kicks in providing the T/B does not breach the option to purchase contract in his duration of the RTO term.
Pick this idea apart please` any thoughts?
Cheers
Luke