Powerpoint For Brokers

©Home Owner Soon, 2006-2009 1

Home Owner SoonThe $ecret Weapon of $ix-Figure Broker$


With strict approval guidelines and lenders tightening their belts, it's becoming increasingly more difficult to get clients approved.

Gone are the days when only the irresponsible were unable to obtain financing.

These days, those with high income, those new to Canada, and even entrepreneurs feel the wrath of the stringent financing qualifications.

Times are Tough


Do these clients deserve to fall through the cracks, while leaving you with nothing to show for your efforts?

Home Owner Soon Is Your Solution!

•No longer will you need to let another valuable client leave unsatisfied.

•No longer will you spend hours upon hours on a client only to end up getting zero for your efforts!

Throwing Declined Tenants a Lifeline


Home Owner Soon is a Toronto-based companythat offers rent to own solutions for both renterswho are passionate about becoming home owners, and the brokers who fight to fulfill their dream.

In 2006, Realtor Alex Kluge (top right), MBA and Broker Guy Lew (bottom left), AMP identified a hole in the industry – a hole that was only getting larger as time went on.

The market was saturated with smaller, local lease players, but there was no company with the kind of reputation and clout needed to fill the ever-increasing demand for a national rent to own option.

Who is Home Owner Soon?


We are a people driven company governed by those values that best serve our future homeowners, our investors and our team of brokers.

We are well aware others have copied our business model, but we continue to lead and thrive in this industry because our values are what set us apart.

The model does not work without a value based philosophy behind it and a commitment to not only uphold those values but truly live them.

We pride ourselves on being the standard for this industry.

What is Home Owner Soon?


What’s in it for you!


• You have a solution to your clients problems when other brokers and banks don’t even know that this type of quality program exists

• Your client benefits over long term since their credit is slowly being rebuilt so they then quality for that traditional mortgage

• You create additional income when, in the past, these declined deals didn’t get you paid

Why it makes sense to work with us?


•You get paid top fees without jumping through hoops and fewer documents to submit.

•We pay 100 bps for every client who does a rent to own deal with Home Owner Soon

IT JUST DOESN’T GET ANY BETTER THAN THAT!

How we will compensate you


NO THERE ISN’T. You can send as many as you have at any time, PAST or PRESENT.

How great is that?

Is there a limit to the number of clients you can send us?


Sounds great but how does it all work?


Rent to own is also commonly referred to as Lease to own. The terms are interchangeable.

Rent to own is a lease agreement between the owner of the property (the lessor who is a Home Owner Soon investor) and the tenant owner (the lessee) .

Leases are agreed upon by both parties and the lease payments are paid monthly over the lease term-generally 2 years.

Rent to own explained


Option Credits…A set portion of the lease (20%) is credited towards the down payment and later used to purchase the home at the end of the lease term. This is accomplished through the monthly option credits.

Security Deposit…

The tenant-owner is required to bring in a minimum security deposit of 5% which is held by the lessor with no obligation to pay interest.

What are option credits and security deposits?


Your client chooses the property they want, within the amount they have been approved for.

Unlike some rent to own set ups, they are not forced to choose from a few homes. They can pick any affordable home they want, in any area that best suits them.

This means the house they loved and were initially declined for from the bank could be theirs after all.

Where does the property come from?


There are two sides to Home Owner Soon.

So who buys the house?

Investor

Home Owner Soon

Tenant-Owner


Home Owner Soon essentially sits in the middle, with our eager investors on one side and our eager tenant owners on the other.

When your client, which you have referred to us, finds that dream home they are looking for, they let us know.

We then tap into our database and offer the deal to one of our savvy investors. The investor that scoops up the deal then purchases the home in question and the lease to own agreement then kicks in.

So who buys the house? continued...


The lessee has the option to fulfill the purchase at the end of the term. A sale or transfer price is set at the beginning of the lease based on realistic appreciation rates for the area in question.

The lessee also has the option to walk away from the purchase at the end of the lease.

Doing so however, would mean the forfeiting of all monthly credits accumulated and the entire security deposit to the lessee.

What happens when the lease is up?


Tell me more about the tenant?


• Low beacon score due to late payments, collections and judgment.• Absence of established credit (beacon R or I).• Bankruptcy and consumer proposal.• Non-renewable mortgage, or deals that are pushed into power of sale.

What conditions make someone suitable for rent to own?

• Business for self, commission or cash business that has insufficient business history to qualify with CMHC.• Current income shy to qualify under TDS rules, but expect income to rise significantly higher due to the nature of the job


• GDS is 30% based on combined monthly income

• Gross Annual Income / 12 Months x (.3) = Maximum Lease Payment

• Lease Payment / (.009) = Maximum House Value Tenant Can Be Qualified For

For example…

Income = $60,000 /12 = $5,000 x (.3) = $1,500/ (.009)

Maximum Purchase Price =$166,667 or $170,000

How we calculate their purchase price


Income is King!They need to have a sufficient income to be able to cover the monthly rent plus the monthly option credits.


Why might a deal be

declined?


•Lack of security deposit; a minimum deposit of 5% is required since this is the foundation for the down payment in the future.

(Note: deposits can go up due to type of employment, property location, and extent of credit bruising.)

•Property values priced beyond what the lessee could afford.

Continued…

Things that can decline a deal


• Location is too rural and not marketable if it is in the middle of nowhere.

• Property is too specialized like cottages or mobile homes.

• Property is in disrepair with such things as roofing or foundational issues or outstanding work orders.

• Type of employment is too unstable ie. industries that are currently in jeopardy.

Other factors for deal declines…


What We Are Looking For

In A File


For successful candidates, the some of the following documentation is required…

•Application•Credit bureau•Job Letter•Pay stubs•Notice of Assessment (most current year)•T4 (last 2 years)

What we require for file submission


How to submit a file


If you have a deal to send our way, please submit to…

Guy [email protected] or 416-293-7536

Got a deal to send

mailto:[email protected]


Hopefully, you now see the tremendous potential our program has for both you and your clients.

Please don’t hesitate to contact us if you have any questions.

We look forward to working with you in the very near future.

Sincerely,

The team at Home Owner Soon

We looked forward to working with

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