Family Getting Back into Homeownership

Rachel and Greg are married with 5 kids (19, 18, 18, 15, 12). They owned a home before. They amassed a lot of debt as a result of a litigation battle concerning their son. Last year their son was diagnosed with autism and was being bullied at school, which caused Greg and Rachel to spend a lot of money on lawyers and counselling programs. The situation has since been resolved, positively in their favor. As a result, their son was moved from the public school system and is now thriving in the proper placements and community programs.

While trying to keep up with expenses related to the 2019 litigation process, Rachel and Greg fell behind on their credit cards and bills. The amount of debt made them uncomfortable. Instead of filing for a Consumer Proposal, the couple chose to sell their family home to pay off debt. They set aside $30,000 from the proceeds of the sale and would like to invest that money in their fresh start. Greg’s younger brother, Justin will also be moving in with Rachel and Greg to help contribute to the household income, rather than renting an apartment on his own. Through our RTO program, this family will work together to qualify for a mortgage in 2023.

The combined household income for Rachel, Greg and Justin is about $157,000. Greg is a Screening Officer at GARDA Security Screening Inc. Has worked there full-time since 2009, and currently earns $56,000 annually. Justin also works for GARDA as a Screening Officer. He has been there since 2009 as well, and earns $52,000 annually. Rachel manages the household and looks after their kids, with extra focus on their 18-year old twins who are autistic. Each year Rachel receives $31,000, which contributes to the household income. In addition, she earns $18,000 a year working part-time as a secretary for an accountant.

Greg’s score is 559. Proceeds from the sale of their last family home are being used to pay off debt. Over the next 3 years Greg will work with a mortgage agent to improve payment history and raise his score. Rachel’s score is 517 because of late payments in 2019. She will be working with a mortgage agent to ensure everything is back in balance over the next 3 years. Justin’s score is 566. He will pay down his balances and will work with a mortgage agent to ensure he uses credit cards more effectively going forward. Greg, Rachel and Justin will receive assistance with credit repair and money management to help them qualify for a mortgage in 36 months. Both Greg and Justin are essential workers and will not have to worry about being laid off during COVID-19.

The priority for this family was to find an affordable house in Angus (Barrie area) that is spacious enough to accommodate their whole family. They are tied to the Barrie area. The goal is not to uproot their two autistic children, since they receive care and are involved in special programs in that area. The property they picked is close to their previous home and they love the area. The house is located in a commuter-friendly area, close to Hwy 400, which makes it easier for Greg and Justin to drive to work together.

Next Steps
If you can qualify for a $452,000 mortgage (based on a 20% down payment), and would like to earn about $1019+ in monthly cashflow to help Greg and Rachael Rent to Own, please call or text Rachel at 416-450-1940.

Investment Property Highlights

  • Your investment is $105,400
  • Estimated annual return on investment is 27% (based on a mortgage rate of 3.54 and 30 yr amortization –approximated)
  • Your estimated NET profit $85,831
  • Your NET monthly cash flow is approx. $1019+ a month
  • Tenant-buyers have $30,000 for the down payment
  • Tenant-buyers has household income of $157,000

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About the Property

  • Purchase price is $565,000
  • Target closing date is 30 days
  • Tenant-buyer agrees to pay $3,502 monthly
  • Monthly carrying costs $2,500 (or less)
  • Tenant-buyer will buy this house in 2025 for $644,759

Next Steps

  • Yes, I want to proceed with this opportunity
  • Meet realtor and sign conditional offer
  • Confirm your financing
  • Review inspection report
  • Review contracts
  • Go firm on the deal
  • Tenant-buyer’s $30,000 down will be used as the deposit on the property with accepted offer
Rachel and Neil Oliver
Rachel and Neil OliverCo-Founders, Managing Partners
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