Southeast False Creek 2010 Olympic Village Update - Millennium Developments gets $100-Million Bailout from City of Vancouver

MetroNews Reports that the City of Vancouver Has Taken Over Financing of the Olympic Games Village Development

According to Jeff of Vancouver MetroNews, The City of Vancouver will finance the entire $1 billion Olympic Village along Southeast False creek waterfront proprety development after purchasing a $750 million loan agreement from New York based Fortress Investment Group yesterday morning on February 18, 2009. Vancouver Mayor said that the deal gives the city the best reutn on its investment and allows it to focus on getting the Southeast False Creek Vancouver Olympic Village ready in time for the Games. During a special council meeting yesterday morning, city manager Penny B informed councillors that an hour earlier, the City of Vancouver had transferred $319 million to Fortress Investments to purchase out the loan on the Olympic Village real estate development. The amount represents the money that Fortress Investments loaned to project developer Millennium Group, plus a $4 million early repayment fee. The buyout money for the South East False Creek Olympic Village in Vancouver is a $240 million investment of city money and $90 million of a $400 million line of credit from the Bank of Montreal. Fortress Buyout 'Best Of a Bad Situation' - The latest in the long string of bad news coming from the real estate development of the Vancouver Olympic Village along southeast False Creek property. According to 24 Hours Vancouver, the City will go it along on the struggling Olympic Village real estate project. City manager Penny announced yesterday that city hall bought out financier Fortress Credit Corporation at a cost of almost $319.5 million for the bailout of the Vancouver Olympic Village in order to stay on budget and schedule. The move means the division of struggling New York based hedge fund Fortress Investment Group has been cut out of the Vancouver 2010 Olympic Village real estate development project completely. The City of Vancouver, using a BMO Bank of Montreal line of credit up to $400 million is now the lender on the Southeast False Creek Olympic Village in Vancouver. Millennium Development remains the property developer and ITC and MetroCan the builders. After a special city hall council meeting yesterday, Vancouver Mayor called the Fortress Investment take out a turning point in the drama that has engulfed the 2010 Vancouver Olympic Village fiasco for months now. The waterfront residential project's problems clouded an election campaign that Robertson won handily last fall aft er news leaked of the city's emergency $100 million city loan brought on when Fortress stopped paying for the funding on the Southeast False Creek Vancouver Olympic Village site development. Robertson said holding teh purse strings will give the city better flexibility not and beyond. Under the terms of a tripartite deal with Fortress and Millennium Group, the city of Vancouver was liable for a construction guarantee. It paid $133 million to keep construction on the Olympic Village along Southeast False Creek going. It's estimated $690 million is still need to complete the project in time for the Winter Olympics. This by Bob and Irwin of 24 Hours.

City of Vancouver Mum about $100 Million Bailout for Olympic Village

According to Metro News Vancouver’s Maria C on the secretive bailout by the City of Vancouver for Millennium Developments cost overruns for the Olympic Village 2010. The city of Vancouver yesterday refused to comment on details of a closed door meeting that enabled a $100 million bailout to help offset the mounting costs of the 2010 Olympic Village in False Creek. “It’s not in the taxpayer’s interest to talk about the day-to-day dealings,” said Jody Andrews, the Olympic Village’s deputy manager, and project manager for the southeast False Creek real estate project, adding that the taxpayer’s “risk profile in this project hasn’t changed – the project will be delivered on time.” Furthermore, Andrews said that the “commitment of the city remains unchanged.” Vancouver city coundil approved the money in a closed door session on October 14th, 2008, when the private developer, Millennium Development Group, was struggling with the international credit crunch and cost overruns in a slowing Vancouver real estate housing market, according to new reports. Yesterday, NPA mayoral hopeful Counc. Peter Ladner reamiend tight lipped about the meeting, and was led away by staff when reporters questions him about the loan for the 2010 Olympic Village $100 million bailout plan following the Downtown Vancouver Association’s debate. Earlier, he conceded that the council is “concerned about finances.” “We’ve been prudent with (the Property Endowment Fund),” he said. “It is equipped to take situations like this and make loans like this.” Ladner was also stunned to learn that Vancouver’s director of finance. Estelle Lo, had resigned. Media reports speculate that Lo quit her position after months of expressing concern that the City of Vancouver was taking on too much financial risk in this 2010 Olympic Village southeast False Creek real estate development project. The full cost of the Olympic Village has been estimated at about $1 billion, and as part of the public private partnership some of the units will be made available as affordable or social housing.

$100 Million Handout for the 2010 Olympic Village in Southeast False Creek Vancouver

There are more questions than answers today about the financial future of Vancouver’s Olympic Village after a report emerged suggesting city council had secretly approved a $100 million bailout to the 2010 Olympic Village Southeast False Creek site’s developer. This according to 24Hours Vancouver. Senior city staff yesterday refused to confirm or deny that council had authorized the $100 million loan last month to Millennium Development Corp, which is tasked with building out the site in Southeast False Creek real estate district. And city councilors who are said to have unanimously given the deal a thumbs up, including a mayoral candidate, stayed largely silent on the issue as well. But the senior city official in charge of the Olympic Village site insisted the project was in order, despite acknowledgeing the $1 billion overall plan was roughly seven per cent over budget. “The taxpayer is under no additional exposure and it’s being complete on scheduled,” said deputy city manager, Jody Andrews. But he refused to speculate on the finances of the Southeast False Creek Olympic Village in Vancouver. “What I can say is the overall package remains unchanged,” Andrews said. “The day-to-day transactions on how to get there, we don’t reveal.” What remains to be seen is the extent of any political fallout on the issue with just over one week to go before the November 15th elections. Vision Vancouver mayoral candidate Gregor Robertson, who doesn’t currently sit on council, yesterday called for a public hearing to air out the city’s finances before the election. “The public has a right to know what’s going on before the election,” said Robertson. NPA Coun. Peter Ladner, chair of the city’s finance committee, refused to comment as the story developed yesterday but said in a press release that Robertson’s call for an open discussion on the finances “reveals his lack of experience in how civic government works.” By Irwin L. Right now, it is presumed that the Vancouver City Council has approved a $100-million loan to Millennium for the Olympic Village Southeast False Creek real estate development project.

Vancouver Olympic Housing Worries

A recent study shows previous host cities have seen negative impact on local housing markets. This by Maria for MetroVancouver. A study of seven different Olympic cities around the world found that local residents were the biggest losers when it came to the impact of the Olympic games on local housing markets. “The local people living in a city shouldn’t be adversely affected by a sporting event that lasts for two weeks,” said Clair Mahon, a principal author of the 2007 report entitled Fair Play for Housing Rights: Mega Events, Olympic Games and Housing Events. According to Jenny Kwan, NDP MLA for Vancouver-Mt. Pleasant, since the Winter Olympics were announced for Vancouver-Whistler, more than 1,200 single room occupancy units have been lost. “This is housing that’s been lost to low-income populations and it’s had a direct impact on the increase in homelessness that we’ve seen since the games were awarded to Vancouver,” said Laura Track, a lawyer with Pivot Legal Society. Activist Am Johal added that a funded watchdog group was promised but not set up, as was a civil liberties round table that hasn’t come to fruition. “Many other cities and many other people are watching what happens in Vancouver and hoping this can continue to be an example for the rest of the world in terms of how you organize an Olympic games,” Mahon said. “So the idea is to say, ‘Let’s continue to make it better.’”

Olympic Village Tab Could Rise Even Further
According to 24Hours Bob M. There could be more bailouts on the way if the Vancouver Olympic Village struggles to the finish line. The August 31, 2006 lease agreement between the City of Vancouver and Millennium Southeast False Creek Properties, obtained by 24 Hours calls for substantial completion by September 30, 2009 and VANOC to begin exclusive use November 1, 2009. A clause gives the City of Vancouver the power to order Millennium to accelerate work, but the City of Vancouver would pay the bill for extra wages, materials and heavy equipment. The contract said Millennium Southeast False Creek properties would not be liable for unavoidable delays beyond its control, such as destruction of buildings by explosion, riots or earthquake. Inability to meet financial obligations is not considered an unavoidable delay. If Millennium commits materials default by failing to pay rent or not adhering to project milestones, the City of Vancouver could “re-enter and take possession of the lands and building,” according to the contract. City council approved a $100 million bailout loan for cash-strapped Millennium Southeast False Creek Properties in a secret October 14th meeting. Information was leaked to the Globe and Mail but all NPA, Vision Vancouver and COPE councillors have refused to talk about the meeting. NPA Counc. Peter Ladner, who is running for mayor, was unavailable for comment yesterday. Ladner fought back Friday at Vision Vancouver apponent Gregor Robertson by conceding he is “prepared to lose this election to save this project and protect the city’s taxpapers.”

Vancouver Olympic Village Housing Affordability Out The Window?

According to the latest February update on the 2010 Olympic Village fiasco surrounding affordable housing and recent attempts at refinancing the growing debt, the 24 Hours magazine examines what is actually going on. Written by Irwin for 24 Hours Vancouver. There was a rush to point fingers yesterday as city officials in Vancouver searched for answers to the latest financial conundrum facing the Vancouver 2010 Olympic Village real estate development along the waterfront of South East False Creek. Soaring costs have jeopardized plans to build 252 units of affordable housing at the Olympic Village Southeast False Creek, it was revealed this week, which was a huge part of the sustainability and legacy for the development of this master planned waterfront Vancouver community. “It’s Unfuriating to inherit yet another big problem,” said Vancouver Mayor Gregor Robertston. His Vision Vancouver party has sought to pin the blame on the former ruling party, the NPA, which oversaw the project for three years. But the Vancouver Olympic Village real estate development project and affordable housing part of it was started under a previous Vision/COPE government with more ambitious social housing targets in mind for the Olympic Village along southeast False Creek neighbourhood. “It would be wrong to point to any one decision,” said Suzanne, the lone NPA councillor at city hall. “There were a series of decisions made over eight years.” Now, Vancouver city faces finding up to $77 million more to keep future rents for the Vancouver Olympic Village project affordable, or reducing the level of affordable housing at the site. But given that the affordable housing was a key part of Vancouver’s bid book promises that won the city the 2010 Olympic Games, it appears the city is unlikely to go with the latter option. Robertson suggested the city might look at building out the Olympic Village affordable housing units away from the Olympic Village property itself. Affordable housing in the Southeast False Creek Olympic Village development is at risk now thanks to cost overruns.

Hollyburn Properties presents Downtown Vancouver West End Glenmore Apartments for Rent - Beautiful Quiet Neighbourhood with Luxury Rental Condos

The Glenmore West End Vancouver Downtown Rentals and Apartments for Rent by Hollyburn Properties

A great article from the Vancouver Home Renters Guide by Zac G. goes through the Hollyburn Properties managed West End Glenmore apartment condos in downtown Vancouver homes for rent. Quiet West End Living is still available at these rental properties at the Glenmore condos for rent in downtown where renters will find quality apartments and superior management by Hollyburn Properties in this completely renovated suites in the West End rental market for apartment homes. The Glenmore West End Vancouver rental suites include studio and one bedroom apartments with new kitchen appliances including dishwashers. Other new features for these condos for rent at the West End Glenmore Hollyburn Properties managed tower include hardwood flooring, vertical blinds, mirrored closet doors and the latest in bathroom fixtures and faucets. Located on a quiet tree lined street of Barclay Street in the downtown Vancouver West End rentals, the Glenmore apartments for rent will be walking distance to Stanley Park, boutiques, restaurants and transite. There is gated parking for all renters at the Glenmore West End apartments rentals and heat and hot water are included with your rental lease. Sorry, no pets are allowed at this Hollyburn Properties Glenmore apartments that provide affordable downtown Vancouver West end rental suites. Located at 1885 Barclay Street in Vancouver, you can contact Hollyburn Properties at 604.644.0062 for available rental apartments in the West End of Vancouver. With his experience working in building management, Leigh Follack understands the challenges involved when different personalities share the same rental building. So as a resident at the West End rental properties at the Glenmore apartments, he’s qualified to critique how Hollyburn Properties manages his home – and he gives them top marks. “They score a 10 with me,” says Leight. “I’be been in a few rental buildings in the West End and I know how busy they can get. But here, everyone respects everyone’s privacy, and that isn’t the norm in the city. Sometimes you’re taking a chance.” The chance that Leigh refers to is the possibility of noise and disruption creating a tense relationship among Glenmore neighbours. He’s experienced that at other rental apartment places, and he’s quick to point to the professionalism of the resident manager at The Glenmore West End apartment rental condos as part of the reason the downtown Vancouver rental building remains so quiet and peaceful. “The resident manager here gave a very warm introduction,” says Leigh. “He is very professional and wears a uniform. The meet and greet sets the standard for living in the building.”

A Boutique Rental Building in the West End

Renovations are currently underway at The Glenmore apartments for rent in the West End of downtown Vancouver rental condo market, including new plumbing and bathrooms. Several freshly renovated studio and one bedroom suites will be available September 1st, giving future residents practically a new rental apartment home to move into. “Hollyburn Properties invests a substantial amount of money into their buildings,” says Alisa Aragon, sales and marketing manager at Hollyburn Properties property managers. “The Glenmore West End renovated suites will have hardwood flooring, vertical blinds, mirrored closet doors and new kitchen appliances, including a dish washer.” And to offer even more value, Hollyburn Properties has formed a strategic partnership with many major corporations including Co-Operative Auto Network, Shaw, Costco and ING Insurance, to pass on exclusive savings to renters at the Glenmore apartment condo West End rentals. Unlike some new buildings, the West End rental homes at the Glenmore are spacious and airy, with large windows infusing natural light into the rooms and flexible floorplans giving residents many options. Even the studio apartments for rent at the West End Vancouver Glenmore are generously proportioned, offering open living rooms nad walk in closets. “It’s a really boutique building,” says Alisa of the charming, four floor complex.

A Quiet West End Community

Located at the corner of Barclay and Gilford, this friendly neighbourhood is ideally located between the Robson shopping district and Stanley Park. It forms a peaceful pocket secluded from the big city bustle yet in proximity to every amenity for renters at The Glenmore West End apartments. Bikes and walking are the preferred modes of transportation here, creating a calming atmosphere reinforced by an abundance of trees and Gilford being a no-through road. The vibran nieghbourhood offesr an eclectic mix of residents and a slower pace than other parts of the West End rental market. “The west side of Denman is very nice,” says Leigh. “The closer to Stanley Park you are, the quieter it becomes.” Consistent with the lifestyle here, Hollyburn Properties is also committed to being eco-friendly. “Hollyburn recognizes that corporate environmental responsibility is important to both its residents and the community,” says Alisa. “We are committed to decreasing energy consumption to minimize environmental impact on our operations at the Glenmore rental condos in the West End.” Throughout the rental apartment homes at the Glenmore Vancouver Downtown you will find energy efficient appliances, Power Smart lighting fixtures and light bulbs, along with other energy saving measures.

Hollyburn Properties proudly owns and manages their buildings featuring quality West End rental apartments with superior management in Vancouver, Calgary and Toronto. The Glenmore West End is located at 1885 Barclay Street. For more information or to arrange a viewing, please call 604.644.0062 or visit www.rentersguide.com.

Institute of Commercial Real Estate (ICRE) - Vancouver Commercial Property Investment PLUS Plaza 15 North Vancouver Commercial Office Space for Sale

Plaza 15 Offices for Sale in Central Lonsdale North Vancouver

Plaza 15 North Vancouver Professional Strata Central Lonsdale Office Space for Sale right now! For sal in Central Lonsdale office space real estate: The North Shore's primary business district of Central Lonsdale that features 21 Commercial North Vancouver Strata Units with 44 individually titled parking stalls. Close to major banks, transit ourtes, city and district halls in addition to being next to the new library and significant residential condo developments on the North Shore, the North Vancouver Plaza 15 office building is now for sale. These professional North Shore offices are ideal for self employed and small business professionals. Excellent commercial office real estaet opportunities for both property investors seeking commercial Real Estate North Vancouver investments. Office/Commerical real estate ownership: The real estate developer will renovate to suit, just ask for details. In addition, there is a large roof top deck for occupants' use. Complete rewiring and individual electric meters are unique and great features for investors at Plaza 15 North Vancouver commercial real estate space. Underground secure parking, secured washrooms on each floor in addition to water available to most units is another key ingredient for these North Shore commercial spaces for sale in Central Lonsdale North Vancouver commercial real estate market. Security doors and cameras are building wide as well. There are 21 commercial strata units for sale ranging from 425 sq ft to 2152 square feet. The prices for these Central Lonsdale Plaza 15 North Vancouver commercial strata units is between $375 to $475 per square foot, very reasonable for this location. For further information, please contact the Plaza 15 Sales Centre at 778.340.7304 or info@plaza15offices.com located in the North Shore's Plaza 15 North Vancouver commercial office building. Visit www.plaza15offices.com for more details.

How You Can Get Super Rich With Vancouver’s Commercial Real Estate!

Self-made Multimillionaire reveals the next jackpot for real estate investors in Vancouver. Apartments, Offices, Retail, Medical, Warehouses, Industrial, Hotels & Resorts. Discover why Vancouver Commercial Properties are easier to own, pay greater cash flow, and are more profitable than owning rental houses... and anyone can do it! Vancouver, BC – It’s no secret that commercial real estate in Vancouver is legendary for its ability to “multiply” your net worth. And this year is poised to be one of the best years ever to invest in Vancouver commercial property and secure your retirement. The Wall Street Journal reported: “commercial real estate is showing solid fundamentals in many markets – with occupancies high, increasing rent growth and supply under control.” Now you can get a complete overview of what it takes to be successful in your own hometown investing in Vancouver commercial real estate property. A free workshop reveals how to own commercial property in Vancouver real estate area. This FREE 90-minute introductory workshop shows you how you could own lucrative commercial real estate in as little as 60 days. You’ll discover how it’s possible to: increase the worth of a commercial building by up to 30% in 30 days, quickly pinpoint the value of a commercial building – no calculator needed and also determine the highest and best use for any commercial property in Vancouver. In addition, you can find out how simple paperwork can add huge value to your property. Commercial real estate has proven to make more money much faster. Commercial real estate is richer than single family housing. You make more money, get faster appreciation, and avoid today’s residential real estate down cycle. But did you know, you can become independently wealthy on just one deal? The FREE workshop will highlight how this can be done with Vancouver commercial property. Commercial real estate beats Residential property in many ways including: huge wealth is possible and make $1 million from just one deal, little to no risk and make money without risking a penny of your own, fast income and make money in less than 30 days, steady money and generate a constant cash flow you can bank on, secure growth and get long term trenants with built in rent increase as well as less work and enjoy hassle-free, low cost or no cost property management with Vancouver commercial real estate property. Who should attend this Vancouver commercial property workshop? First time real estate investors: if you have never invested in real estate, get started with the big moneymaker right from the start in the form of a new Vancouver commercial real estate property. Residential real estate investors: find out how to move up to the phenomenal income potential of commercial real estate. Get proven strategies that take you from residential real estate in Vancouver to commercial property and put you in a whole money making league. Commercial real estate investors: discover how to construct truly powerful deals that take your income to the next level and beyond. Discover how to find, analyze and secure lucrative properties. Real estate professionals: Now it the time for you to make more money on your commercial real estate deals in Vancouver. See how you can earn more than a commission and massively increase your net worth by getting in on the action for yourself. Small business owners: stop paying rent to someone else. Build an additional cash flow stream for your business and watch your wealth multiply through owning Vancouver commercial property.

Commercial Property in Vancouver Workshop brought to you by Cherif Medawar

The workshop for Vancouver real estate commercial property is brought to you by Cherif Madawar, the founder of the Institute of Commercial Real Estate (ICRE). His education at UCLA taught him how to work for money, but now how to make his money work for him. He was working night and day as ah otel manager in California when a billionaire guest pulled him aside and said, “Cherif, come work for me. I will show you the path to wealth.” Cherif learned how to acquire properties, how real estate deals are structured, and how billions are made. ON a much smaller scale, he also began to buy his own properties and develop a personal system for creating wealth. Today, his properties are all over the world. And yet, he works less than ever. The Vancouver commercial real estate workshop will be great for beginners and seasoned property investors alike. Now you can learn ways to master the art of commercial real estate in Vancouver and get a complete overview of what it takes to be successful in your own city. You’ll get an up-close view of the best types of commercial Property in Vancouver to invest in now, and the hidden properties with big payout potential that often get overlooked including: finding prime Vancouver commercial real estate in your area before it hits the market, investing in commercial property using other people’s money, starting with a positive cashflow Vancouver commercial property, getting immediate cash back and location Vancouver real estate commercial rpoperties that can subsidize your retirement sooner. It’s OK to start at zero, as long as you start. Some of today’s most successful commercial real estate investors started with nothing. Like Cherif, banks wouldn’t talk to him. They had no personal assets. No money. Now you can find out how it’s possible to overcome the obstacles and go from $0 to millions. At the FREE 90 minute workshop focused on Vancouver commercial property for sale, you will discover the hidden real estate gems, how to structure risk-free commercial property deals and to find out how to invest in our local city. Save your free coupon and plan now to attend. See why almost anyone can tap the “millionaire mind set” and become truly wealthy through investing in Vancouver commercial real estate today. In you area for 4 days only so learn how to make money with commercial real estate investments in Vancouver. Admission is free. Sunday, September 28 to Wednesday October 1st. Presented by the Institute of Commercial Real Estate or ICRE.

Don’t Let These Myths Stop You From Owning Vancouver Commercial Real Estate!

MYTH: commercial real estate is too expensive. REALITY: it can be the best bargain in real estate investing. Fact is, it can cost no more out of your pocket to acquire a commercial property in Vancouver than to buy a house. Even acquire Vancouver commercial properties with little or no money down. MYTH: commercial real estate investing in Vancouver is too complicated. REALITY: it can be easy. Buying your first commercial property can be no more complicated than buying your first home. MYTH: Commercial real estate property Vancouver investing is too volatile. REALITY: history shows it can be much more stable than investing in houses, especially in the market we’re in today. Plus get property value appreciation, tax benefits and higher income. The biggest myth of all: only the rich can afford commercial property. REALITY: Commercial Vancouver real estate makes your rich, but you don’t need to be loaded with cash to get started. Find out why at this amazing free workshop: How To Make Money With Commercial Real Estate Investing in Vancouver.

Find Out Why the Moneymaking Potential is Spectacular – Straight from the Institute of Vancouver Commercial Real Estate

Coming soon to Vancouver is the How to Make Money With Vancouver Commercial Real Estate in 2009 seminar brought to you by the Institute of Commercial Real Estate. Today’s 2009 Vancouver real estate market gives you unparalleled advantages. Cherif Medawar will share with you key secrets that helped him become the owner of more than $200 million in historic US commercial real estate and the Caribbean. All on his own too! No partners needed. He is the chief owner of these commercial buildings. And now, the Institute of Commercial Real Estate wants to teach you how to take advantage of these great opportunities during 2009. If the economy continues to slump and the job losses climb, you can still create a financial safety net that not only protects your wealth, but grows it through investing in 2009 Vancouver commercial property. In this enlightening two hour presentation, Cherif Medawar, principal of the Institute of Commercial Real Estate will show you how to buy commercial real estate in Vancouver in 2009 using other people’s money (see why having little to no cash on your own is no problem), transition from residential to commercial and increase your wealth potential by about fifty fold as well as how to maximize the vast income producing potential of Vancouver commercial properties by learning new key strategies that have made millionaires. Before you think Vancouver commercial real estate is out of your league, wait until Cherif Medawar talks about his past and background and how he got started in investing in commercial real estate.

Commercial Real Estate Versus Residential Real Estate Investing – What are the differences and which one is better?

Commercial property values in Vancouver can rise when home values fall. Plus, commercial real estate in Vancouver can take less time to manage and it attracts a better caliber of tenants, including major companies in some places. You can also benefit from longer lease terms of about 15 years in Vancouver commercial real estate with built in escalations in rental income whereas the value of a house is based on comparable sales, the commercial property is based on net operating income. That means a modest $500 monthly rent increase in commercial real estate in Vancouver can actually increase your property’s value by up to $100,000! At the free seminar by Cherif Medawar for the Institute of Commercial Real Estate, he will show you how it’s done and why commercial property is better than residential property investing. Commercial buildings in Vancouver can be 10 times more valuable then a house, yet cost no more out of pocket to buy than a typical home. If you still love residential property, then buy a Vancouver apartment building and create mega wealth. Instead of owning one or two houses, it’s like owning an entire block through Vancouver commercial real estate investing. With commercial property in Greater Vancouver you have the best of both worlds today: solid investment growth plus truly phenomenal opportunities to acquire commercial property at low interest rates. Plus, there’s the golf mine of moneymaking potential that’s yours when you convert a residential Vancouver property to commercial. There’s no slowdown in profit making opportunities in Vancouver commercial real estate investing if you invest the correct way. Cherif Medawar will also explain how you can find prime Vancouver commercial real estate property before it hits the market as well as how to negotiate lucrative tenant deals for positive cash flow.

Lease to Own Home Ownership Model (aka Rent to Own Condos) is a Grey Area PLUS Home Owner Soon explains why this model works for both buyer & seller

Lease to Own or Rent to Own Options are a Grey Area

According to Pieta W of the Georgia Straight: On October 6, the day the TSX tumbled 1,106.95 points, Jon Murray’s phone was ringing off the hook, as it has been for the past six months. The real-estate consultant specializes in helping people – whom the banks won’t touch due to poor credit, recent immigration, lack of income proof or other reasons – buy their own homes. The strategy is called “lease option”, otherwise known as “rent-to-own” or “lease-to-own” homes. The creative financing thrives in an economy when home sellers are having trouble selling and buyers face a risk averse mortgage industry. “All day, every day, I’m on the phone because so many people want to do it,” Murray told the Georgia Straight, noting that about 100 realtors in B.C. are negotiating these leases. “Just in the last six to nine months, the lease-option or rent-to-own/lease-to-own market is starting to get really hot because there’s lots of houses not moving. The privately contracted deal is pretty simple. The home buyers seeking the rent-to-own or lease-to-own lease option puts about five per cent of the price of the home to “secure it”. Then he or she moves in. Over a period of about two years, the home buyer pays an inflated “rent”, part of which goes toward equity in the house. At the end of that period, if everything goes well, the homebuyer gets a traditional mortgage from the bank. For example, at strategichousing.ca, which specializes in lease options or rent-to-own home purchase models, a seven bedroom home with two suites in Surrey real estate market can be leased fro $2,840 a month. Of that, $950 per month goes toward equity. The rest, $1,890, is considered rent. Although lease options are relatively new in Canada, San Francisco-based real estate agent John Reed has watched them for about 25 years. He wrote about them in his 1998 self published book, Single Family Lease Options, now in its fourth edition. Reed thinks they should be illegal. “It’s generally a scam down here,” he told the Straight on the phone from his home in Alamo, California. “in 90 to 95 per cnet of cases of lease to own or rent to own lease options, the lessee never exercises the option to buy. So they lose the front-end money, which was $5,000 to $25,000 and they lose the rent they paid… it’s a heavy duty outrage.” Reed notes that even though lease options are somewhat regulated across the U.S., with 45 states with statutes in place and two federal laws pending, most home buyers who get involved in lease options and rent to own models don’t have the wherewithal to fight for their rights when the deals sour. “They think they’re just tenants,” he said. “So when they get evicted for being a day late with their rent, the agent gets to keep $30,000. They are preying on unsophisticated newlywed couples.”

More about the Lease Options Home Buying Model

In Canada, lease options and rent-to-own homebuying models occupy a hazy legal zone. They’re not covered by the Real Estate Act, according to Anthony Cavanaugh, the communications officer with the Real Estate Council of B.C. In addition, lease options or lease-to-own contracts not covered by the Residential Tenancy Act, according to the Tenants Rights Action Coalition spokesperson Tom Durning. “If it sounds too good to be true, it probably is,” Durning told the Straight. “you should get a lawyer before you sign anything, and you’re crazy if you don’t With five per cent down and these low interest rates, why rent to own?” According to strategichousing.ca owner Andy Santoso, the reality in 2008 is that 40 per cent of Canadians don’t qualify for a traditional mortgage. That’s where lease options and rent-to-own home buying models can help. “Home ownership elevates your social and financial well-being,” he told the Georgia Straight, explaining whey that 40 per cent shouldn’t be content to just rent. Sam Ryan, owner of lease2ownbc.com told the Straight he researched lease options and rent-to-own contracts thoroughly before opening his business this May. Since the real estate market slumped, he noted, interest is booming in lease options in Canada. Given the Conservative government’s cancelling of the zero-down, 40 year mortgage, as secured by the Canada Mortgage and Housing Corporation, he said, “people are more concerned about being able to get into a property rather than the actual price of it, as long as their payments are affordable.” Murray, owner of Jowen Investments and Consulting Group (jowen.ca) admits that there can be problems with unethical lease option agents and rent-to-own contract models. Individuals should protect themselves, he suggested. But in a real estate market were the banks are cracking down on who can borrow, he said, lease options and lease to own are certainly the present reality, and they may be the future too.

Why Rent When You Can Own? Rent To Own Homes Across Canada

You can choose your dream home. Select any home available for sale… anywhere with Home Owner Soon. A special advertisement from the Canada Real Estate Magazine featuring Home Owner Soon. Do you: have credit challenges due to job loss, divorce or brankruptcy? Lack sufficient down payment for bank financing? Lack established credit history? Have difficulty qualifying because you are self employed or a small business owner? We can help make home ownership a reality for you through Home Owner Soon. Visit www.HomeOwnerSoon.com to find out how YOU can Rent to Own your own dream home! Call Home Owner Soon toll free at 1.866.702.4334.

Be a Home Owner… Very Soon through Rent to Own or Lease to Own Model

By Sharon A. More and more renters who dream of owning their own home, but face some financial obstacles, are turning to HomeOwnerSoon.com. Launched in 2006, the company features two rent-to-own programs that make it possible for those who’ve been rejected for a mortgage by the big banks to buy a home in a timely manner. “Many people have difficulties obtaining conventional bank financing,” says Guy Lew, the company’s credit manager. “We fill a need in the marketplace for those who want to own a home, ut can’t obtain financing from major financial institutions.” HomeOwnerSoon.com clientele include those who lack an established credit history, don’t have enough money for a down payment ot quality for traditional bank financing, are self-employed or small business owners, or possess credit challenges due to job loss, health issues, divorce or bankruptcy. Those who think they’ll be ready to purchase a home within two to three years can take part in one of two rent to own or lease to own programs offered by HomeOwnerSoon.com. The Rent to Own Program enables participants to choose a property from among the approximately half dozen listed on the company’s website. They make a small down payment that is credited to them as a deposit that will form part of their overall equity in the property that they are lease to own. They then begin making monthly payments, which include a rental payment and a Monthly Option Credit payment (typically about 20% of the rental payment), which is saved and credited towards the purchase price of their property.

Benefits of Rent to Own Models

Rent to Own participants enjoy the benefits of a guaranteed purchase price, even though they won’t purchase the property for a while; equity appreciation right away; and affordable monthly payments. Most popular, however is HomeOwnerSoon.com’s Buyer Selection Program, which works the same way as the Rent to Own Program, but allows clients to select almost any home they wish in Canada, whether it be available through MLS or private sale. “About 90% of the time, our clients gravitate towards our Buyer’s Selection Program,” says Alex, the company’s relationship manager. “The terms are exactly the same, except people have total freedom in choosing their own home. From what I’ve seen, this is a unique program in the marketplace.” The easy qualifying process means that as long as interested individuals can afford the monthly payments, they can sign up. Once they do, they receive valuable advice and coaching from HomeOwnerSoon.com credit experts on debt consolidation and credit repair and optimization – this helps them be better prepared when, at the end of the program, they approach banks for mortgage financing. “We go through their credit bureau report with them, and if their beacon score is too low, we offer tips on how they can improve it,” says Lew. Once clients are on the road to home ownership, he says, they can enjoy the tremendous benefits that accompany it.

“If you compare owning versus renting, home ownership always increases your overall net worth, helps you build equity, and customize your home according to your needs,” says Kluge. So far, hundreds of aspiring home owners have enrolled with HomeOwnerSoon.com, including many young families, and their feedback has been overwhelmingly positive. “people don’t believe how easy it is, that they can choose any home they wish, a detached house, condo or townhouse, new or resale, and that they can make their dreams of home ownership come true,” he says. “They are very grateful to us for helping them achieve that.”