{"id":1322,"date":"2012-11-07T09:18:37","date_gmt":"2012-11-07T15:18:37","guid":{"rendered":"http:\/\/www.montreal-realestate.ca\/english\/?p=1322"},"modified":"2012-11-07T09:18:37","modified_gmt":"2012-11-07T15:18:37","slug":"lease-options-banks-wont-lend-to-you","status":"publish","type":"post","link":"https:\/\/www.montreal-realestate.ca\/english\/lease-options-banks-wont-lend-to-you\/","title":{"rendered":"LEASE OPTIONS \u2013 Banks won\u2019t lend to you?"},"content":{"rendered":"\n\n\n
I met Gerald Czernohorsky at my Montreal RE Investors Group<\/u><\/a>. We got together for coffee the other day and he was telling me about his lease option formula that he\u2019s built his business on. I was intrigued because I know there are people out there who have money to buy real estate, however the banks won\u2019t lend them the money because their credit score is too low or perhaps they are a new landed immegrant. If this is the case for you, Gerald has a solution. Partnering up with him will allow you to create a win-win situation and buy your dream home.Let me say from the beginning, working with Gerald, you will end up paying a little extra then getting a tradional mortgage, however saving a lot more then what a B lender would offer you and at the same time, building your credit.
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\nThe way it works is like this:<\/strong>
\n1) <\/strong>Call Gerald Czernohorsky and discuss your situation, your wants and needs.
\n2)<\/strong> From there, you can show him the house you would like to buy or ask him what he has available.
\n3) <\/strong>He will qualify you by means of a credit check.
\n4) <\/strong>Go over his agreement with your lawyer, to make sure you are well informed of all the pertinant details. These documents are create to protect both parties.
\n5) <\/strong>You will need a downpayment, minimum $10,000, which is 100% refundable if you end up buying the property at the end of the lease.
\n6)<\/strong> Make monthly payments in two cheques. First Cheque: The \u201cPITI Payment\u201d, Principal, Interest, Taxes, and Insurance. This portion is non-refundable. Second Cheque: \u201cOption Consideration\u201d This portion is refundable only if the \u201cTenant\/Buyer\u201d their option to purchase the home. Usually $200-$300, depending on the value of the home.
\n7) <\/strong>If the Tenant\/Buyer cannot afford to pay more than the \u201cPITI Payment\u201d then most likely he will not do the deal.
\n8) <\/strong>All the paperwork is documented for build your credit score.
\n9)<\/strong> At the end of the \u201crental\u201d term, the idea is to go to the bank and get a real mortgage\u2026now that you\u2019ve built up your credit score.
\n10)<\/strong> As for the selling price it is always set in advance and is clearly stated in the Purchase Option Agreement\/Contract.<\/td>\n		\"\"<\/a>
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