brokerpresentation il
Lease with a Right to Purchase Program
www.homepartners.com We are not a mortgage company. We do not provide and do not have any obligation to provide financing. We cannot guarantee or in any way assure that you will be able to obtain a mortgage if and when you wish to exercise the right to purchase. ©2014 Home Partners of America, Inc. All rights reserved. Home Partners and the Home Partners of America, Inc. logo and “A New Path to Homeownership” are pending or registered trademarks and service marks of Home Partners of America, Inc. or its affiliates.
Who We Are We want to lead responsible households on a new path to homeownership. Our goal is to help 10,000-15,000 households in the next 14-16 months:
We work with households that want to rent homes with a right to purchase in the future: −
First-time homebuyers
−
Individuals relocating to a new market
−
Households that cannot obtain mortgages
A household can select any home listed for sale that meets our criteria: −
Financial obligation is limited to one year of rent
−
The lease can be renewed annually for a total of five years
−
The resident can move out after any one-year lease term without penalty
−
The resident can buy the home from us at any time during their residency
As our buyer’s agent, you will receive a full co-op commission when we buy the home. Confidential
2
How It Works Our process is simple and transparent: Agent Receives Sales Commission
The Resident can start by applying online at: www.homepartners.com/apply
Confidential
3
How to Apply We respond to an applicant within 24-48 hours of receiving all required information. If approved, we specify their maximum rental amount and copy you on the notice. We evaluate household rent-to-income and debt-to-income ratios, rental and housing history, employment history, criminal history, FICO® scores, and other elements of an application.
Basic requirements: −
Annual household income of at least $50,000
−
Stable employment
−
No history of eviction and no pending bankruptcy; acceptable criminal history
Every household must provide: −
Full Application from everyone 18+ years old
−
Application Fee ($75 total per household)
−
Supporting documents: •
Income Verification
•
Asset Verification (equal to 2 months of rent)
First-Time Homebuyer
Difficulty with Mortgage
Relocating
Concerned about Housing Market
Residents can apply at www.homepartners.com/apply
Confidential
4
Property Requirements Approved households work with you to find a home they want us to buy. It must meet the following requirements: 1. Location
In an approved community (based on default high school attendance zone, ranked in the top 50%) Not adjacent to features that may negatively impair value
2. List Price
Between $100,000 and $550,000
Minimum of two bedrooms Lot of three acres or less
Single family home or fee-simple townhome No condo associations, commercial or multi-family properties
5. Sale Type
3. Size
4. Property Type
Traditional sale or bank-owned properties No short sales or auctions
6. Safety Considerations
No material deficiencies (e.g., major structural issues, pervasive mold, etc.)
*Pools are not allowed in Illinois.
Confidential
5
How to Find a Home
We will purchase homes in communities where the high schools rank in the top 50% of the MSA.
Select the community and school district of interest ant the approved rental amount. Choose from all active for sale listings on the MLS that meet our property requirements.
Page 6
How to Submit a Property
Submit the property using our online forms:
−
It should take only 10 minutes to complete
−
The property will be submitted to our underwriting team
Send supporting documents to us at [email protected]: −
MLS Listing Sheet
−
Seller Disclosures
−
Photographs
−
Resident “Make-Ready Checklist”
Missing information will delay our offer
We value the property within 4-6 business hours of receiving all required information
Confidential
7
The Right to Purchase Once an approved applicant finds a home:
You submit it to us, and we analyze the value of the home
If approved, we send the applicant an email outlining the Total Cost Basis & what we will offer
We also outline the rent and purchase prices for each lease term
Cost Type Purchase Price
$190,000
Closing Costs
$2,000
Make Ready Estimate
$5,000
Requested Renovations
$3,000
Estimated Total Cost Basis
Confidential
Price
$200,000
8
The Right to Purchase We provide a schedule of rent and purchase prices for each lease term:
Applicants agree to pricing before we make an offer.
The rent increases by 3.75% per year.
The purchase price increases by 5% per year. Monthly Rent
Right to Purchase Price
$255,250 $243,100 Right to Purchase Price
$1,870
Rent
$1,800
$231,500 $220,500
$1,730 $210,000
$1,660
5% Annual Increases
3.75% Annual Increases
$1,600
Total Cost = $200,000
0 0
1
3
2
4
5
1
2
3
4
5
Years
Years
Confidential
9
Contract to Closing Once the applicant agrees:
We generate and sign a contract and return it with proof of funds
You make an offer on the home as our buyer’s agent
We are a cash buyer, and we bid competitively at fair market value
Once we are under contract:
The resident signs a one-year Lease and the Right to Purchase Agreement
The resident provides a two-month deposit
We schedule and pay for a home inspection
As a cash buyer, we are able to close quickly
We do not do leasebacks
Once we buy the home:
We make any Make Ready repairs or requested renovations
The broker receives a full co-op commission
The resident needs to provide the first month’s (pro-rated) rent upon move in
The resident may exercise the Right to Purchase at any time during their residency for the appropriate predetermined price with 60 days notice
Confidential
10
Our Expectations 1. Please Understand the Program
Understand our Lease with a Right to Purchase Program and explain it to applicants
2. Honor NAR Code of Ethics and Adhere to Agency Guidelines
Advocate for Home Partners – we are your client
3. Submit Required Documents
Property submittal; MLS listing sheet; seller disclosures; Comparable Market Analysis; photographs; Resident Renovation Checklist
Missing information will delay the process
4. Maintain Confidential Information
Do not distribute contracts or legal documents
5. Facilitate Inspection
Ensure access and make sure utilities are turned on
6. Conduct Final Walkthrough
Confirm property condition on the day of closing
Arrange for transfer of keys
Confidential
11
Questions?
Home Partners of America 180 N. Stetson Ave, Ste 3650 Chicago, IL 60601 Apply at www.homepartners.com/apply
For more information, please contact: Home Partners of America [email protected]
Confidential
12
www.homepartners.com We are not a mortgage company. We do not provide and do not have any obligation to provide financing. We cannot guarantee or in any way assure that you will be able to obtain a mortgage if and when you wish to exercise the right to purchase. ©2014 Home Partners of America, Inc. All rights reserved. Home Partners and the Home Partners of America, Inc. logo and “A New Path to Homeownership” are pending or registered trademarks and service marks of Home Partners of America, Inc. or its affiliates.
Who We Are We want to lead responsible households on a new path to homeownership. Our goal is to help 10,000-15,000 households in the next 14-16 months:
We work with households that want to rent homes with a right to purchase in the future: −
First-time homebuyers
−
Individuals relocating to a new market
−
Households that cannot obtain mortgages
A household can select any home listed for sale that meets our criteria: −
Financial obligation is limited to one year of rent
−
The lease can be renewed annually for a total of five years
−
The resident can move out after any one-year lease term without penalty
−
The resident can buy the home from us at any time during their residency
As our buyer’s agent, you will receive a full co-op commission when we buy the home. Confidential
2
How It Works Our process is simple and transparent: Agent Receives Sales Commission
The Resident can start by applying online at: www.homepartners.com/apply
Confidential
3
How to Apply We respond to an applicant within 24-48 hours of receiving all required information. If approved, we specify their maximum rental amount and copy you on the notice. We evaluate household rent-to-income and debt-to-income ratios, rental and housing history, employment history, criminal history, FICO® scores, and other elements of an application.
Basic requirements: −
Annual household income of at least $50,000
−
Stable employment
−
No history of eviction and no pending bankruptcy; acceptable criminal history
Every household must provide: −
Full Application from everyone 18+ years old
−
Application Fee ($75 total per household)
−
Supporting documents: •
Income Verification
•
Asset Verification (equal to 2 months of rent)
First-Time Homebuyer
Difficulty with Mortgage
Relocating
Concerned about Housing Market
Residents can apply at www.homepartners.com/apply
Confidential
4
Property Requirements Approved households work with you to find a home they want us to buy. It must meet the following requirements: 1. Location
In an approved community (based on default high school attendance zone, ranked in the top 50%) Not adjacent to features that may negatively impair value
2. List Price
Between $100,000 and $550,000
Minimum of two bedrooms Lot of three acres or less
Single family home or fee-simple townhome No condo associations, commercial or multi-family properties
5. Sale Type
3. Size
4. Property Type
Traditional sale or bank-owned properties No short sales or auctions
6. Safety Considerations
No material deficiencies (e.g., major structural issues, pervasive mold, etc.)
*Pools are not allowed in Illinois.
Confidential
5
How to Find a Home
We will purchase homes in communities where the high schools rank in the top 50% of the MSA.
Select the community and school district of interest ant the approved rental amount. Choose from all active for sale listings on the MLS that meet our property requirements.
Page 6
How to Submit a Property
Submit the property using our online forms:
−
It should take only 10 minutes to complete
−
The property will be submitted to our underwriting team
Send supporting documents to us at [email protected]: −
MLS Listing Sheet
−
Seller Disclosures
−
Photographs
−
Resident “Make-Ready Checklist”
Missing information will delay our offer
We value the property within 4-6 business hours of receiving all required information
Confidential
7
The Right to Purchase Once an approved applicant finds a home:
You submit it to us, and we analyze the value of the home
If approved, we send the applicant an email outlining the Total Cost Basis & what we will offer
We also outline the rent and purchase prices for each lease term
Cost Type Purchase Price
$190,000
Closing Costs
$2,000
Make Ready Estimate
$5,000
Requested Renovations
$3,000
Estimated Total Cost Basis
Confidential
Price
$200,000
8
The Right to Purchase We provide a schedule of rent and purchase prices for each lease term:
Applicants agree to pricing before we make an offer.
The rent increases by 3.75% per year.
The purchase price increases by 5% per year. Monthly Rent
Right to Purchase Price
$255,250 $243,100 Right to Purchase Price
$1,870
Rent
$1,800
$231,500 $220,500
$1,730 $210,000
$1,660
5% Annual Increases
3.75% Annual Increases
$1,600
Total Cost = $200,000
0 0
1
3
2
4
5
1
2
3
4
5
Years
Years
Confidential
9
Contract to Closing Once the applicant agrees:
We generate and sign a contract and return it with proof of funds
You make an offer on the home as our buyer’s agent
We are a cash buyer, and we bid competitively at fair market value
Once we are under contract:
The resident signs a one-year Lease and the Right to Purchase Agreement
The resident provides a two-month deposit
We schedule and pay for a home inspection
As a cash buyer, we are able to close quickly
We do not do leasebacks
Once we buy the home:
We make any Make Ready repairs or requested renovations
The broker receives a full co-op commission
The resident needs to provide the first month’s (pro-rated) rent upon move in
The resident may exercise the Right to Purchase at any time during their residency for the appropriate predetermined price with 60 days notice
Confidential
10
Our Expectations 1. Please Understand the Program
Understand our Lease with a Right to Purchase Program and explain it to applicants
2. Honor NAR Code of Ethics and Adhere to Agency Guidelines
Advocate for Home Partners – we are your client
3. Submit Required Documents
Property submittal; MLS listing sheet; seller disclosures; Comparable Market Analysis; photographs; Resident Renovation Checklist
Missing information will delay the process
4. Maintain Confidential Information
Do not distribute contracts or legal documents
5. Facilitate Inspection
Ensure access and make sure utilities are turned on
6. Conduct Final Walkthrough
Confirm property condition on the day of closing
Arrange for transfer of keys
Confidential
11
Questions?
Home Partners of America 180 N. Stetson Ave, Ste 3650 Chicago, IL 60601 Apply at www.homepartners.com/apply
For more information, please contact: Home Partners of America [email protected]
Confidential
12
