The following examples are just a few of the many ways we can buy your house. It is impossible to give examples of every way there is to sell a house that exists. If you can think of a way to sell your house, it can probably be done. There is always a way.
Browse through the examples below. If you have any questions, please feel free to contact us.
If you would like a no obligation consultation, please fill out the Consultation Form.
LEASE OPTIONS
Using a "LEASE OPTION", we will lease your property on a short or long term basis. We will also sign an agreement that gives us an option to buy your property sometime in the future at an agreed upon price. It goes like this:
- We sign a lease agreement for months or years.
- We sign an option agreement that gives us the option to buy your property at the end of the lease term.
- We make monthly payments to you on your home on the 5th of every month GUARANTEED!
- We handle all repairs, maintenance and management costs up to $500.
- You continue to pay the original mortgage, taxes, and insurance.
- You handle all major repairs over $500, ie furnace, roof, hot water etc.
- We buy you out at the end of the lease term.
Example #1:
| 3 BEDROOM 2 BATH 980 SQ FT HOUSE IN NE CALGARY | ||
|---|---|---|
| Purchase Price | $350,000 | Total paid by buyer | Lease Term | 2 Years |
| Down Payment | $5,000 | Negotiable |
| Monthly Payments | $1,500 | Made to seller |
| Monthly Management Fee | $200 | $200X24=$4,800 reduced purchase price |
| Cash to Seller | $340,200 | Paid at end of Lease Term |
Example #2:
| 4 BEDROOM 3 BATH 1400 SQ FT HOUSE IN SW CALGARY | ||
|---|---|---|
| Purchase Price | $400,000 | |
| Lease Term | 3 Years | |
| Down Payment | $6,500 | |
| Monthly Payments | $1700 | Made to seller by buyer |
| Monthly Management Fee | $200 | $200X36=$7,200 reduced purchase price |
| Cash to Seller | $386,300 | Paid at end of Lease Term |
AGREEMENT FOR SALE
In an "Agreement For Sale" or AFS, we will sign an agreement that says we will agree to buy your property sometime in the future. It goes like this:
- We sign an agreement to buy your home at a future date that we agree upon.
- We make monthly payments to you on your property.
- We handle all repairs, maintenance and management costs.
- You continue to pay the original mortgage from the money we pay you.
- We pay you out typically when the mortgage is up for renewal, or at another time we agree upon.
Example #1:
| 2 BEDROOM 1 BATH 980 SQ FT CONDO IN SE CALGARY | ||
|---|---|---|
| Purchase Price | $265,000 | |
| Down Payment | $10,000 | 4% of purchace price |
| Monthly Payments | $1200 | Made to seller by buyer |
| Cash to Seller | $10,000 | Paid to seller at closing |
| Mortgage Payments | $1100 | Continued to be paid by seller |
Example #2:
| 3 BEDROOM 2 BATH 1100 SQ FT HOUSE IN NW CALGARY | ||
|---|---|---|
| Purchase Price | $370,000 | |
| Down Payment | $10,000 | 3.2% of purchace price |
| Monthly Payments | $1400 | Made to seller by buyer |
| Cash to Seller | $10,000 | Paid to seller at closing |
| Mortgage Payments | $1300 | Continued to be paid by seller |
VENDOR TAKE BACK MORTGAGE
A Ventor Take Back mortgage is when the buyer obtains a mortgage from the Seller for some or all of the purchase price of the property. Below are some detailed examples of how this will work:
Example #1:
| 2 BEDROOM 1 BATH 980 SQ FT CONDO IN SE CALGARY | ||
|---|---|---|
| Purchase Price | $265,000 | |
| Down Payment | $53,000 | 20% of Purchase Price |
| Vendor Take Back Mortgage | $53,000 | 20% of Purchase Price (The down payment) |
| Bank Loan | $212,000 | 80% of Purchase Price |
| Cash to Seller at Closing | $212,000 | 80% of Purchase Price |
In this case the buyer obtains a second mortgage from the seller in order to purchase the property. The buyer does not have the $53,000 but is willing and able to make the payments. The buyer optains a Primary Mortgage from a bank. The seller recieves $212,000 from the buyers bank at closing. The seller also receives a monthly payment for the Secondary Vendor Take Bank Mortgage that he/she holds with the buyer.
Example #2:
| 3 BEDROOM 2 BATH 1100 SQ FT HOUSE IN NW CALGARY | ||
|---|---|---|
| Purchase Price | $370,000 | |
| Sellers Original Mortgage | $68,000 | Seller has a mortgage on the property. |
| Down Payment | $111,000 | 30% of Purchase Price |
| Vendor Take Back Mortgage | $259,000 | 70% of Purchase Price |
| Cash to seller at closing | $43,000 | Down Payment ($111,000) - Original Mortgage ($68,000) |
In this case the buyer has $111,000 cash for a down payment but is not able to get a mortgage. The seller has a $68,000 mortgage on the property. The buyer obtains a Primary Vendor Take Back Mortgage from the seller for $259,000 in order to purchase the property. The seller recieves $111,000 cash from the buyer. The seller pays off the his/her original mortgage of $68,000. The seller also recieves monthly payments from the buyer for a pre-specified number of years until the $296,000 mortgage is paid off. In this case no banks are needed.
Example #3:
| 2 BEDROOM 1.5 BATH 1000 SQ FT TOWNHOUSE IN NE CALGARY NEEDING $40,000 WORTH OF REPAIRS | ||
|---|---|---|
| Purchase Price | $200,000 | |
| Down Payment | $0.00 | 0% of Purchase Price |
| Vendor Take Back Mortgage | $200,000 | 100% of Purchase Price |
| Cash to Seller | $0.00 | Paid to seller at closing. |
| Cash to Seller | $200,000 - payments already made. | Paid to seller when buyer refinances. |
In this case the seller owns a townhouse with no mortgage that he/she has been renting out for 5 years. The tenants destroyed the interior and it now needs $40,000 worth of repairs. The seller has no money for the repairs and is tired of being a landlord. The buyer has the money for the repairs and agrees to buy the property with a Vendor Take Back Mortgage for the price of $200,000. The seller receives monthly payments from the buyer. The buyer makes the repairs and refinances the property with a bank at a later date. The seller gets $200,000 minus the payments already made when the buyer is finished the repairs and refinances the property.
PAY ALL CASH
In order for us to pay all cash for your home, we would have to put anywhere from 5% to 20% down and then qualify for a bank mortgage. Some times we can do this but we are limited to how many houses we have mortgaged already. Below are some detailed examples of how this will work:
Example #1:
| 3 BEDROOM 2 BATH 1100 SQ FT HOUSE IN NW CALGARY | ||
|---|---|---|
| Purchase Price | $370,000 | |
| Down Payment | $74,000 | 20% of Purchase Price |
| Bank Loan | $296,000 | 80% of Purchase Price |
| Cash to Seller | $370,000 | Paid to seller assuming no mortgage is due |
Example #2:
| 4 BEDROOM 2.5 BATH 2500 SQ FT HOUSE IN SW CALGARY | ||
|---|---|---|
| Purchase Price | $493,000 | |
| Down Payment | $98,600 | 20% of Purchase Price |
| Bank Loan | $394,400 | 80% of Purchase Price |
| Cash to Seller | $493,000 | Paid to seller assuming no mortgage is due |
