The Way TFRTO Works

Tenant-First Rent-To-Own: The INs and OUTs of the Process!

Everything You Need To Know About RRSP Mortgages

What is the Tenant-First Rent-To-Own (TFRTO) strategy that we utilize to achieve great results? First, we look for a qualified tenant-buyer (TB). Then the TB, with the aid of a realtor, finds the house they like the best. After this, we purchase it for them, and then at the end of the term, they buy it from us. There is an almost 100% success rate with this strategy.

Our method is different from the “traditional” lease-to-own model where a company purchases a home (or many) and then attempts to search for a tenant-buyer who (hopefully) likes the house and then purchases it.
Here is our great site where we direct potential TBs in the Ontario region:

An Overview of: Tenant-First Rent-to-Own

• We (ENDLESSVEST) spend proper time to locate and "qualify" a tenant-buyer
• The TB locates a home they desire: That they want to purchase in the 3 or 4 years
• We put together a joint venture with passive investors to purchase the home
• We then rent the home to the TB while offering them the option to buy it in 3 or 4 years
• The TB takes care of the property until it's time to purchase the home
• We (ENDLESSVEST) handle the property management until the home is sold
• The TB then purchases the home for the pre-determined price discussed in the agreement
• The investors will get the investment back and gain profit from the high interest we pay

Mark Loeffler in his bestselling book “Investing In Rent-to-Own Property” states that this one-of-a-kind method basically frees you from the obligation of being a landlord. You don’t have to worry about the responsibility of repairs, upkeep, and other time-consuming burdens. 

Why TFRTO Is a Good Deal for Our Investors

• We (ENDLESSVEST) manage the property for you;
• Tenant’s rent covers the mortgages, the insurance, the taxes and all the utilities;
• Any maintenance above a specific amount is paid by the TB (up to $750 per event/up to $2000 per year)
• ENDLESSVEST handles the repair and maintenance costs that are above the amounts mentioned
• ENDLESSVEST handles major costs incurred by the investors so they have to pay little to no pocket costs during these three years
• Before purchasing the property, it is completely inspected
• The price-to-sell is agreed in advance and sold in 3 to 4 years; and
• The bottom line is that the investor will be benefiting from the perks of being an investor as well as a landlord without hassles of handling tenants or properties

This is another great advantage of a tenant-first-rent-to-own system. The tenants will be able to perform any kind of maintenance or repair, and they can also upgrade the property or even boost the appeal and interior of the home. They are able to make any changes, as they will soon become the owners. Rather than dealing with those midnight calls from tenants complaining about the water heater or other maintenance issues, you will be getting calls about asking if they can replace old carpet with a new one? You can proudly say that my tenants have handled all the upgrades, right from changing floors, renovating kitchens or installing windows. Isn't it exciting? Mark Loeffler (aka The Versatile Investor, owner of 50 doors) states in his Canadian bestselling book Investing In Rent-to-Own Property.

Why TFRTO Is a Great Deal for the Tenant-Buyer

TFRTO gives TBs a remarkable opportunity to repair the credit and buy a house which they might not be capable of purchasing. You might be aware that over 25% Canadians who are able to afford a mortgage are not able to buy homes, because they are not qualified. That is where we come in. Here are some characteristics that are a good potential TB has, and he can get qualified in 3-4 years:

• Is able to provide a fee of $12K (minimum requirement) at front
• Is dedicated to repairing the credit
• Has no any credit history (for instance, he could be an immigrant who just came to Canada or could be anyone who always prefers paying bills via cash)
• Has witnessed situations such as foreclosure, bankruptcy, divorce, lay-off etc.
• Has decent income now (min. of $80K a year)
• Is an entrepreneur or a self-employed person
• Is trying to do everything to get home ownership and is looking for help

How We Find a Good Tenant-Buyer

We follow a thorough process to ensure our TB is a serious, qualified candidate that will be a good fit for our program. Here is a quick overview of the steps we take:
• We only consider serious potential TBs who come to us directly or are recommended to us by a trusted third party.
• After we familiarize ourselves with the potential TB over a few phone calls, we then refer them to our Credit Repair Specialist who assesses whether or not they would make a suitable TB from a financial standpoint.
• Upon receiving the go-ahead from our Credit Repair Specialist, we meet with the potential TB to cover the general TFRTO process as well as the specifics pertaining to their particular case. This includes discussing the length of the agreement, their budget for monthly rent and the option consideration fee, among other details.
• We complete an in-depth follow up with each of the potential TB’s references.
• The potential TB spends time with a realtor who helps them find a property that meets not only the TB’s criteria, but ours as well.
• Before the TB makes any offer on a property we fill out the necessary paperwork and agreements and receive a nonrefundable fee from them.
• At this stage, we make the final arrangements with the TB, informing them of both the closing date and move in date.
• Once final arrangements are made, we review what the TB must do in order to comply with a house inspection report. If the TB fails to comply with any part of the inspection, we will fix the discrepancy for them but the cost will come out of their pocket.
• Finally, our Credit Repair Specialist outlines a process for the TB to improve their credit rating so they will be able to get a mortgage in as little as three years to buy their property.
• After all of the hard work from each party involved, the TB moves in and we celebrate!


The Closing Process When We Sell to the Tenant-Buyer

• The TB has until six months prior to the expiration of the agreement to inform us of their decision regarding the option to buy the house they are living in.
• If they decide to buy the property, the TB will use the six-month period to ready their finances for the purchase. They can do so with the guiding hand of our own Mortgage Specialist, or any other specialist of their choosing.
• We close the deal on the predetermined date and with amount specified during our final arrangements made during the vetting process, and the TB officially owns the property!
• All funds are disbursed as per the agreement with the investors.

Questions? Please get in touch with us by sending an email by contact us.