Why Invest in HOS Financial Real Estate Opportunities?
HOS Financial has been offering Lease Purchase Investment opportunities since 2006. We have completed over 680 Rent to Own Programs with in excess of $ 210 Million in Real Estate. These are the high level reasons why Investors are attracted to our Real Estate Investment opportunities but there is more, much more.
There are many Real Estate Investment strategies available to every Investor. In addition to Rent to Own, there is The Buy, Rent and Hold, The Buy, Fix and Flip, The Flip, Joint Venturing just to name a few. In recent years, we are finding there is a bigger and bigger migration away from more traditional Investment strategies and more emphasis being placed on the Rent to Own model. Why? Because of the changing dynamics in the “Market”! So what is changing…
Mortgage lending rules are making it increasingly more difficult for Consumers to get approved to purchase a New Home. We know, when someone has their heat set on achieving the dream of Home Ownership, they will not stop because their Bank is saying “No”. They will and are looking for alternatives to fills that void. In steps the Rent to Own Model. As these “quality” tenants look for investors to help them obtain their goal of owning a home, the Real Estate Investment opportunities are becoming more abundant an the “quality” of the Opportunities are increasing. We are seeing many Opportunities for clients who would have been auto approved by a bank as recently as 3 years ago. Now these same “profile” consumers are being told no.
The second biggest reason we feel Investors are moving away from more traditional Investment strategies is the Market Economics. Many of the above strategies are based on the premise of Investors finding “below market value” properties. This dynamic does not exist in many of the Major Centers across Canada and specifically in Ontario and B.C. where finding a property under market value is almost an impossibility. Just recently in a Toronto neighborhood, a property listed for $ 600,000 sold for 4 170,000 over the asking price. This market economics make many traditional strategies very difficult to execute.
The last thing we hear from Investors is they are tired of many of the following:
- Late night Service Calls
- Uncooperative Tenants who pay late
- Tenants who show no pride of living in the property
- Constant calls for Maintenance
- Tenant who have no vested interest in caring for the property
- Low Security Deposits
Inability to make a good ROI (Return on Investment) because of market Economics.
So, as an Investor, are you seeing the same things with your Investment Strategies? Are you looking for an Alternative that provides:
- Higher than average ROI(ROI)
- Higher than Average COC (Cash on Cash)
- Hands Off- Passive Investments
- Investment Opportunities with a planned Exit Strategy
One thing we feel speaks for itself is HOS Financial has been offering Real Estate Investment opportunities since 2005/06.
HOSFinancial was the first and is the only Diamond Status Member with the Canadian Association of Rent to Own Professionals (CAROP). This organization has a mandate to bring Rent to Own to the market as a mainstream product and create standards for doing Rent to Own business.
Statistically, did you know more than 65% of all Non-HOS Financial rent-to-own Programs end in disaster?
Let’s not be part of that statistic…
Here are some reasons why you should consider Investing in our Available Opportunities:
- Strong Process Controls. We are the only National rent-to-own company in Canada. Most of our opportunities are a result of referrals from other Professional Industries such as Mortgage Brokerages, Real Estate Brokerages, Insolvency Professionals, Private Lending Specialists and Direct from On-Line marketing. We have gained the reputation as the “go to” firm for Rent to Own.
- Unparalleled Underwriting and Compliance. Underwriting guidelines that parallel bank guidelines done by our in-house underwriting department. Plus, our files are Compliant with the requirements set by institutions like the Major 6 Banks and High Ratio Mortgage Insurance Providers CMHC, Genworth and Canada Guaranty.
- Planned Exit Strategies. We do not approve anyone for our Program unless we are able to have a planned Exit Strategy for but the Investor and the Tenant. The success of our program is based solely on our ability to properly assess a client’s financial position and position them for an Exit Mortgage at the end of the Rent to Own Term.
- Credit management and ILA. These are both Mandatory with our program. Clients MUST get Independent Legal Advice from their lawyer, not ours. In addition, clients are only enrolled if they choose to work with our In house Credit Management Team or an accredited 3rd party. Plus our Credit management program features Debt Remedy.
- Higher than average ROI and COC %’s. the Returns for Investors with pour program are very attractive and realistic due to our STRONG vetting process.
- Higher than average Security Deposits. Typically the following apply.
- Purchase Programs for Tenants with GOOD Credit – 3% of Property Value
- Purchase Programs for Tenants with BRUSED Credit – 5% of Property Value.
- Refinance Buyback Programs for families facing Power of Sale – 10% of Property Value.
If you are looking for an alternative Investment Strategy or are new to Real Estate Investing, give us a call to learn more about what HOS Financial can offer you! It is our pleasure to answer any questions!