Rare RTO Deal: Below Market Value. No Bidding War.
Jorge and Maria are a married couple. To make homeownership more achievable and affordable, the couple pooled their resources with Jorge’s sister, Patricia. This family was qualified for our RTO program several years ago. Combined, the three of them had a strong enough household income to rent-to-own a home near Barrie, Ontario – a highly desirable market that is out of reach for many first-time buyers. The family has been paying on time and maintaining the property. However, they need a little more time and support to be mortgage-ready by 2024.
The investor who is currently holding title on this RTO deal must sell, due to a family emergency. As a result, you have an opportunity to purchase a great house below market-value. Today’s fair market value of the house is estimated at $900k. The current investor is willing to sell the property to a Clover Properties investor for $670k. By doing this deal you enable the tenant-buyers to get an extension and while also accessing a significant return on investment by putting less capital into this deal.
The combined household income for this family is $180,000. Jorge works as a unionized framer for Pure Building Group, a construction company. He earns $100,000 annually. His wife, Maria, also works for Pure Building Group in an administrative role and earns $40,000 annually. Patricia works for a commercial cleaning business called The Right Way Building Maintenance. She has been with the company for 10+ years and earns $40,000 a year.
All three members of this family have excellent credit and strong payment history. Patricia’s score is 720. She is not carrying any debt. Maria’s credit score is very high – 752. Jorge’s credit score is 716. He has two car loans on his credit, which are in good standing. Jorge needs to pay down the loans over the next two years before a bank will approve their mortgage application. A Clover Properties-approved mortgage professional is going to be working with this family to help them exit into their own mortgage at the end of the 2-year term.
This single-family detached house is located in Essa, about 20 minutes from Barrie, Ontario. This property has 3-bedrooms and 3-baths. It features a finished basement with living space and a kitchenette. The house is well-maintained, featuring a durable steel roof and windows are fairly new. The house is conveniently located near hear highway 400, making it easy to access Barrie and Toronto.
If you can qualify for a $527,024 mortgage and want to enjoy $955 cashflow each month, please click the button below to indicate your interest in helping this family complete their RTO.