We have helped hundreds of Developers sell units that may not be moving quickly. There are a few ways we can help, depending on what works best for the Developer. In all cases, the Developer knows at the start that the property is sold and at what price. A few examples of what we have done:
- Lease option. We set the market purchase price for multiple properties up front, and then make payments that cover the costs on the property. The developer does not worry about rentals, tenants, vacancies, taxes, damage, or Realtors. GST and capital gains are also deferred.
- Seller Financing. Developers that want to get off title may consider providing a secured mortgage. We make the payments and the Developer gets of the title.
- Refinance Lease Option. Developers that need cash to do other things can have us help them get 50-60% mortgages. The Developer takes the cash to move to other things, and we pay mortgages, taxes, insurance and all other costs until future completion. Developer takes the balance of the equity at completion based on agreed price.
- Investor Buyout. Investors (maybe even the Developer’s own investors) can buy out the units at 10-15% below the market price using bank funding. We will pay the financing, and all costs on the units until we pay out the Investors at the original market price. The Developer gets paid up front, and the investor makes money with no costs or management required.
In all cases the Developer deals only with us, and we are making payments until completion, regardless of whether we have a tenant/buyer in the property. The Developer is not renting, dealing with tenants, vacancies, or damage. The Developer also does not have to deal with depreciation, as we pay the purchase price agreed at the start.
We will place a qualified tenant buyer in the property who is motivated to complete a purchase usually within 24 months. Or goal is to complete as soon as possible. If the market has recovered and our buyer is not able to complete on time, we will list the property and sell at a price that pays out the tenant/buyer and the Developer as well. If the market is down, we may need longer. In any case, we continue to pay all costs until we complete at the agreed price.
Our deals would provide compensation and options for Realtors as well.