1. Rent to Own proposal for Home seller
By Street Smart Buyer
First of all thanks for being here. I appreciate you keeping your word. I want to let you know that is really important to me and it’s a great way to get off on the right foot… Are we still good to meet for about 30 minutes today? Great. I have a presentation for you. I would like to talk to you about 5 things.

2. 5 Things My credentials Numbers on the Deal- what I propose
Some real life examples that have worked
How it will work
Next steps……..
The 5 things are: My qualifications when it comes to real estate investment, I want to go over the numbers with you and give you an idea of what I propose, and I would also like to show you some real life examples that have worked. Then I can walk you through how it works and finally, I would like us to decide together whether it makes sense for us to move forward.

3. How would it feel? To be able to walk away
To be able to relax about the property
To know it was looked after?
Before I get into the 5 Topics, I want to ask you a couple of questions about how you are feeling about us potentially working together… Specifically- How would it feel for you to be able to Walk away, to be able to relax about the property, and to know it was looked after?
(NOW I am going to STOP HERE!!! Write down how it would make them feel. Then say:)
Great. Well I appreciate your honesty…and I sincerely hope we can work together to create a solution.

4. My credentials
Graduate of “The Street Smart Seller” Class of hands on training from an Expert
Graduate of “The Street Smart Landlord”- hands on Landlord training to ensure I select a property Tenant that will take great care of properties.
First of all, I want to tell you why I am qualified to take over your house. I haven’t just come off the street wanting to “Dabble” in Real Estate. I have invested a substantial amount of Time and Money Training with a Real Estate investment Coach who has transacted over 300 deals and over 80 million dollars of real estate. I also have extensive training in Land lording- in order to make sure that When I rent the Property- that I will do what I have been trained to do- find a quality person or Family to live in the house.

5. I am here to Buy You
I am basically here to buy you time. I want to help you use time to your advantage. Time to let your mortgage get paid down and time to let the market recover.
TIME

6. If you decide to work with us.
Costs Covered.
Timing- avoid costly prepayment penalties
The mortgage can get paid down more.
The Property is SOLD
No worrying
No realtor fees
CERTAINTY
I want to outline the benefits to you if you decide to work with me (us). It is our intention to make sure that all of your costs are covered- your mortgage, your taxes, as well as your insurance.
This will also enable you to avoid costly prepayment penalties (if Applicable)
Again, by letting me take over your property, the mortgage is going to get paid down over time.
And you will know that the property is SOLD- so you are not going to have to worry about paying a realtor, someone moving in, etc. we will agree on a price today. And I will pay that price to you in (3, 4, 5) years time.
What I hope to provide you along with Time, is Certainty when it comes to the house.

7. Your House Total: $15,000.00 Worth about $300,000
Financing at about $295,000
Plus Commission…. $13,000
Prepayment penalty..$3,000
Total:
-$11,000= Total Loss
( Commission plus pre-payment penalty)
Potential
Rent to own future value
X 3 years= $300,000.00
Debt pay down: $285,000, or $10,000
Plus $5,000 as soon as I find a tenant.
Total: $15,000.00
OK so here is a snap shot of your house. On the left your house is worth about 300,000
The financing is about $295,000.
Now if you were to sell this house through a realtor, it would cost you about $13,000 PLUS a pre- payment penalty of $3,000. So selling right now is going to cost you about $11,000 out of your pocket.
Now I am prepared to offer you $300,000 for the property in 3 years. And I want to show you how you will make money.
First of all, your debt will be paid down by $10,000 from $295,000 to $395, That’s $10,000.
I will pay you $5,000 as soon as I find a tenant (or tenant buyer) and the balance at the end of the term. During that time, your mortgage will be paid down by $10,000. So at the end of the term, you will actually come out ahead by approximately $15,000.
THIS IS INFORMATION BASED ON THE MOTIVATED SELLER WORKSHEET. THIS INFORMATION WILL CHANGE FROM DEAL TO DEAL INCLUDING WHAT YOU PAY FOR A DOWN PAYMENT, AND WHAT YOU ARE WILLING TO PAY AS A PURCHASE PRICE, AS WELL AS THE TERM, AND OF COURSE HOW MUCH THEY WILL END UP MAKING (IF ANY) AT THE END OF THE DAY.

8. How do you do it? You allow me (us) to market the property
We will market the property as a rental
Handle application and interview for potential Tenants or tenant Buyers to fill the house
You need to approve the people as well.
Administer Paperwork completion
Lease/ Option or Agreement for Sale
Real Estate Purchase Agreement
Registration of Paperwork on Title
So how do we do this?
Well you allow me to start marketing THE PROPERTY as a rental right away (I would like to get it filled as soon as possible)
I’ll handle all the tenant phone calls, the applications, the interviews and showings. And of course I would place a tenant without your approval.
I’ll also handle all the administration of paperwork. I will be working closely with an attorney to make sure that both of our best interests are protected and that everything is done properly. Including, Leases, Options to Purchase AND OR Agreements for Sale, Real estate Purchase paperwork, and Registration of paperwork on title.

9. Mallach Road Need to sell.
I want to give you a few examples of properties that have worked in the past. This is a property where the Owners lived in another province. They were tired of losing money every month because the rent wasn’t high enough. And they were just not able to look after it.
The Investor Took over the Payments for the Owner, and rented it out to a local family. The Investor was able to make a little money, and the Owners didn’t have to look after the property (or lose money anymore).
Need to sell.
Bought a little high. If they were to sell now they would break even.
Took over financing, rented it out for them.
They don’t have to worry about the property any more.

10. Beaumont No Equity HUGE Payout Penalty
Rented for 3 years. Everything covered.
This was a property in Alberta. The Owner was moving to Hawaii and didn’t want to deal with renting it out. She was ready to move on. The Investor (someone like me) took over the property for her, covered all her expenses for 5 years, and then paid off her mortgage for her. She didn’t have to deal with the property again except for signing a bunch of paperwork.

11. 11302 97 Street Edmonton Tough Rental….
This property was Sold from a Flipper to and Long term hold Investor (like me). He was tired of paying for this vacant house for 5 months. The investor came in, paid him $15,000 up front and took over all the expenses for 4 years. It was a really handy situation because the Basement suite tenant ended up looking after a lot of the property management for the Investor. It was a huge win for everyone.
Tough Rental….
Basement Suite tenant took over managing.
No more tenant hassle
He made $50,000 in equity the day he bought it because of the Market
I made $15,000 I would not have made as a landlord- WORTH IT!!!

12. What happens: We agree to purchase the house in 3 years
Once a Tenant is Selected and their paperwork is complete,
We lease option the property from you and take over your costs
The tenant moves in and pays us rent.
Full disclosure…. We intend to make a Profit.
You can move on knowing your expenses are covered for the next three years
You get your Price that you want
You can move on
Alright- so let me walk you through what I propose.
I agree to Purchase your house in 3 years time
THIS WILL DEPEND ON THE SITUATION
We will sign a Lease Agreement that agrees to cover your monthly expenses. And WE will sign together an Option to purchase the property in 3 years.
Once I select a great tenant, the tenant will move in and pay ME rent. You simply cash my cheques every month. It will be my responsibility to make sure it is rented. Now I want to tell you right now, I hope to make a profit on this house. I don’t know for sure you much. But I want to make sure you are aware of that…..
The best thing about this is you can move on knowing your expenses are covered over the next 3 years. You will get the price that you want and make Cash now and some additional money at the end of the term.

13. In 2019…. I get my own financing OR sell the house to another.
You get your price of $300,000
Your Mortgage paid off.
And $10,000 extra
I get my own financing OR sell the house to another.
You get your price of $300,000
Your Mortgage paid off.
And $10,000 extra

14. Remember? To be able to walk away
To be able to relax about the property
To know it was looked after?
Now remember at the beginning of this conversation, you said it would feel great, like a weight lifted off your shoulders to have this property off your hands?
AGAIN THIS WILL DEPEND ON WHAT THEY SAID- THAT’S WHY YOU HAVE TO WRITE IT DOWN!!!

15. 2 Types of People
Yes, I think this is a good fit for me (us). I like the sound
of it. Let’s take the next step.
No thank you.
So there are typically 2 types of people. Yes, this sounds like a fit- let’s take the next step. Or No, thank you. This is not a fit for me. Which person are you. Person A or person B?
THIS IS WHERE THE BEST THINGS HAPPEN. MOST PEOPLE NEVER ASK FOR THE SALE. THEY DON’T WANT TO BE PUSHY. BUT YOU MUST! AND THIS IS A REALLY “NOT PUSHY” WAY TO DO IT. Also note, some people will be a combination of A and B. They will need to discuss with their lawyer or another decision maker. That’s ok! Just remember to book another appointment to get a yes or a no! And remember! There is always another bus! If someone is really motivated. And they want help. And they think you can help them.. They will say yes. Only people who are “kicking tires” say no.

16. Well thank you so much for your time today.
IF IT’S A YES- BOOK ANTHER MEETING TO GO OVER Paperwork and GO TO THE NEXT SLIDE.
IF IT’S A “WE WANT TO THINK ABOUT IT”. Make sure you book a meeting to get a decision.
IF IT’S A NO- Here’s where it ends.

17. Next Steps.. Sign some paperwork
Lease Plus Option to Purchase/ Agreement for Sale
Letter of Understanding
(We will start marketing it for rent ASAP)
Paperwork prepared, reviewed and Signed at Lawyers office.
So again, here are the next steps: We need to complete the paperwork, either a lease option or an agreement for sale
We will also need to complete something called a Letter of Understanding which will make sure we are both on the same page. I would like to start marketing it for rent right away. And all the paperwork we sign together will be prepared, reviewed and signed with Lawyers of course that is for both of our protection.
AND BOOK ANOTHER APPOINTMENT!!!!