Gary Hibbert - Smart Guide To Real Estate: Step by Step Rent to Own Investors Edition

www.SHCInvestor.ca
Copyright

Copyright 2012 Gary Hibbert and SHC Publications

All rights reserved. No part of this book may be reproduced by any mechanical, photographic, or electronic process, or in the form of phonographic recording; nor may it be stored in a retrieval system, transmitted, or otherwise copied for public or private use without the prior written permission of the author.

Library and Archives Canada Cataloguing in Publication

Hibbert, Gary, 1974

Smart Guide to Real Estate. Rent to Own: Investors Edition / Gary Hibbert.

Issued also in electronic format.

ISBN 978-0-9880794-0-3

1. Real estate investment. 2. Renting to own. I. Title.

HD1382.5.G54 2012 332.63'24 C2012-905034-2

SHC Publications
P O Box 51109
Rossland/Harwood
Ajax, ON
L1T 4S0

Note to the reader: This publication is sold with the understanding that neither the author nor publisher is engaged in rendering legal, accounting or other professional service. If legal advise or other expert assistance is required, the services of a competent professional person should be sought.

Printed and bound in Canada

The information contained in Smart Guide to Real Estate. Rent to Own Investors Edition is meant to serve as a comprehensive collection of time-tested and proven strategies that the authors of this guide have applied to substantially increase their monthly passive income revenue on www.shcinvestor.ca. Summaries, strategies, tips and tricks are only recommendations by the authors, and reading this guide does not guarantee that ones results will exactly mirror our own results.

The authors of Smart Guide to Real Estate. Rent to Own:Investors Edition have made all reasonable efforts to provide current and accurate information for the readers of this publication. The authors will not be held liable for any unintentional errors or omissions that may be found.

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This book is a step-by-step guide on how to rent a home for top dollars as an investor. Many new investors get into Real Estate with the full intent to be investors and end up becoming landlords.

When I say landlord, what Im referring to is running around fixing leaky faucets, changing light bulbs, cutting lawns and collecting rent cheques each and every month. You didnt get into Real Estate investing to become a Jack of All Trades. I imagine you got into Real Estate to create additional streams of income and to live life to the fullest. If you are like most investors, you got into Real Estate to get out of the 9-5 rat race and to stop living pay cheque to pay cheque.

This guide offers a step-by-step process that I have used to fill all of our properties as well as other investors that I have worked closely with. By following these steps, you too can fill your home for top dollars, receive large deposits before handing over the keys, attract great tenants and at the same time create a win-win scenario for both you and your tenant (who we like to call future homeowner).

Throughout this book you will see icons below. Ive added these to help draw your attention to important and very useful information.

Watch for margin notes like this that highlight key
information for you to pay attention to

Why isnt my home being rented fast enough?

Am I doing what needs to be done?

What if it doesnt work?

I have had days like these where I ask myself hundreds of questions, and it stressed me out in the beginning. This is why I decided to write this easy to follow guide to show you exactly what to do, but more importantly, to enjoy what you are doing.

One of the most important things I have learned is, once you have systems and processes in place and they work, dont change them. By doing this, you can almost guarantee success by duplicating your process over and over again until it becomes second nature.

It is also very important to track what is happening while you are renting your home. Imagine tracking calls, knowing that if you have 20 calls, 10 will book an appointment, 5 will show up, and 2 will be serious candidates. Its almost like being able to forecast when your home will be rented. How exciting is that?!

I dont have all the answers however, I do have the experience, a great team behind me (lawyers, accountants, mortgage brokers), and have dug myself out of some deep holes. I do mean deep!

What has helped me through the tough times is my core team, who has stuck together during the rough times, stayed focused on our goals, and continue to motivate each other. You see, when you hang around great people, their energy cant help but rub off on you. As long as 2 or 3 people can agree upon a common goal, nothing is impossible. Remember that!

This is not a get rich quick scheme but a way to secure your financial freedom within the next 10 years. Now I know 10 years may seem like a long time but if you look at the previous 10 years, how fast did they pass? I would recommend planning for your future today and taking the necessary steps to start working on your dreams right now.

The only time you can do anything is NOW! The past and the future are only an illusion. Think about it.

You cant do anything to change the past, and to affect the future you have to act NOW. The purpose of life is not what you get, but what you become.

FACT: Did you know that approximately 70% of all millionaires make their money through Real Estate?

So what exactly is Rent to Own? The process works similar to leasing a car. Renters (a.k.a. future homeowner) pay a certain amount each month to live in the home and at the end of the term (usually 2 to 3 years) can purchase the property from the seller at a pre-determined amount set at the beginning of the term.

Generally, prior to the tenant moving into the home they pay an option fee (usually 3% of the purchase price) plus first and last months rent. In order for them to be in a position to take possession of the home within the next few years, they will need to build on their initial deposit to acquire the Banks required 5% of the agreed upon purchase price of the home. In order to accomplish this, a portion of their rent (called rent credits) goes towards the down payment which is accumulated on the initial deposit (option fee) when the tenant first moves in. In many cases the rent premiums for Rent to Own homes are an amount slightly above the market rent price with a portion of that money going towards the down payment of the home.