Agent Presentation
Lease With A Right To Purchase Program Increased Commission Opportunities Home Partners is not a mortgage company, does not have any obligation to provide and does not provide financing and cannot guarantee or in any way assure that a resident will be able to obtain a mortgage if and when he/she wishes to exercise their 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.
Company Background 7,000+ homes purchased to date $2+ billion in capital used Operating in 40+ markets nationwide
2
Mission Home Partners of America has a mission of making homeownership a reality for more people by offering approved prospective households the benefits of a transparent process that offers them: Choices, Value, Control and Flexibility Move out after each 1 year lease term without penalty Elect to rent for up to 5 years* Purchase the home any time during tenancy
*May vary in some markets
3
How it Works
Our Process is Simple and Transparent
Invite prospective households to apply for approval at HomePartners.com
Once approved, help approved prospective household find a Home Partners qualified home
Home Partners buys the home and leases it to the approved household. You earn the sales commission
Application to move-in can generally take 45 days or longer.
4
Agent Portal Home Partner’s Agent Portal allows agents to invite households to apply to the program, submit properties for underwriting, check application and property status, and market to potential candidates
In the upper right hand corner of our website click “Agents Click Here”
Click “Sign Up” to register for an Agent Portal account
5
Agent Portal (cont).
Fill out the required information on our “Sign Up” form to complete account creation
Log in to the Agent Portal and click “Invite Resident to Apply” to invite households to apply for approval
6
Resident Criteria* 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 recent 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) *Resident criteria subject to change
7
Property Criteria* Approved prospective households work with you to find a home they want us to buy. It must meet the following requirements: Property Type Single-family home or fee-simple townhome List price between $100,000 and $450,000* No condo associations, commercial or multi-family properties HOAs allowable on a case by case basis Pools are permitted in select states
Location In an approved community Size Minimum of two bedrooms Lot of three acres or less Safety Considerations No material deficiencies (e.g., major structural issues, aluminum wiring, etc.)
Sale Type Traditional sale or FSBO No REO, short sales, or auction *Property criteria subject to change *May vary in some markets
8
Property Search 1. Select “Find a Home” on the home page: - When prompted, select the metro area of interest 2. Use the white search bar to search: - City, High School, ZIP, County, Address, or MLS # 3. The search tabs allow you to narrow your search by: - Home type, price, bedrooms, bathrooms, high school, and more
9
Rental Pricing
10
Property Submittal Log in to submit the property through the Agent Portal Required items for submittal: 1) Resident Renovation Checklist 2) MLS Listing Sheet 3) Seller Disclosures 4) Photos – a full set of interior and exterior* 5) HOAs - Provide contact information (email & phone) and any other relevant information Missing information will delay our offer We typically value the property within 4-6 business hours of receiving all required information
Step 1
Step 2
*Views of front, back, side of house and yard indicating current condition of yard and any outbuildings, playsets, etc. Kitchen and baths (multiple in order to provide different views; at a minimum a view of all appliances), all bathrooms and mechanicals
11
The Right to Purchase Once an approved household finds a home: You submit a property through the agent portal
Example Pricing Structure: Cost Type Purchase Price
Home Partners will analyze the value of the home If approved, we will send the household an email outlining an estimate of the Acquisition Cost and what we will offer. We will also send a notification to the agent (via text, email, or push notification) We also outline the rent and estimated Right to Purchase prices for each lease term
Price $190,000
Closing Costs
$2,000
Make Ready Estimate
$6,000
Requested Renovations (Optional)
$2,000
Estimated Acquisition Cost
$200,000
12
Rent and Purchase Price Transparency We provide a schedule of rent and estimated Right to Purchase price for each lease term for up to five years: Households review and must agree to pricing before we make an offer Rent increases by 3.75% each year Purchase price increases by 3.5% - 5% each year Projected move-in date (minimum 10 business days)
13
Contract to Closing Once the household 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, no appraisals, and with a quick close We bid competitively at fair market value
Once we are under contract: The household signs a one-year Lease and the Right to Purchase Agreement The household provides a two-month deposit We schedule and pay for a home inspection
Once we buy the home: We perform/conduct any Make Ready repairs or agreed-upon renovations The broker receives a full co-op commission The household needs to provide the first month’s (pro-rated) rent upon move in The household may exercise the Right to Purchase at any time during their
residency for the appropriate predetermined price with 60 days notice* *Resident must secure third party financing to exercise the Right to Purchase. Approval into the Home Partners of America program does not mean that the resident will later qualify for third party financing.
14
Our Expectations Please Understand the Program Understand our Lease with a Right to Purchase Program and explain it to applicants
Honor NAR Code of Ethics and Adhere to Agency Guidelines Advocate for Home Partners – we are your client
Submit Required Documents MLS listing sheet; Seller Disclosures; Resident Renovation Checklist; Photographs Missing information will delay the process
Maintain Confidential Information Do not distribute contracts or legal documents
Facilitate Inspection Ensure access and make sure utilities are turned on
Conduct Final Walkthrough Confirm property condition on the day of closing Arrange for transfer of keys
15
Broker Opportunity
First-time homebuyers who are cautious about buying a home now, but want to be able to purchase a home in the future
Potential homeowners who recently relocated and are unsure which neighborhood to live in
Potential homeowners who cannot obtain a mortgage, but who want to live in a community with great schools
16
Marketing Resources
17
Marketing Resources Can be found in the “Marketing” section of the Agent Portal
18
Marketing Resources Can be found in the “Marketing” section of the Agent Portal
19
For more information, please contact:
(877) 234-5155 [email protected] Home Partners of America 180 N Stetson Ave, Suite 3650 Chicago, IL 60601 www.homepartners.com Follow us: Facebook - facebook.com/HomePartners Twitter - twitter.com/HomePartners
Home Partners is not a mortgage company, does not have any obligation to provide and does not provide financing and cannot guarantee or in any way assure that a resident will be able to obtain a mortgage if and when he/she wishes to exercise their 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.
Company Background 7,000+ homes purchased to date $2+ billion in capital used Operating in 40+ markets nationwide
2
Mission Home Partners of America has a mission of making homeownership a reality for more people by offering approved prospective households the benefits of a transparent process that offers them: Choices, Value, Control and Flexibility Move out after each 1 year lease term without penalty Elect to rent for up to 5 years* Purchase the home any time during tenancy
*May vary in some markets
3
How it Works
Our Process is Simple and Transparent
Invite prospective households to apply for approval at HomePartners.com
Once approved, help approved prospective household find a Home Partners qualified home
Home Partners buys the home and leases it to the approved household. You earn the sales commission
Application to move-in can generally take 45 days or longer.
4
Agent Portal Home Partner’s Agent Portal allows agents to invite households to apply to the program, submit properties for underwriting, check application and property status, and market to potential candidates
In the upper right hand corner of our website click “Agents Click Here”
Click “Sign Up” to register for an Agent Portal account
5
Agent Portal (cont).
Fill out the required information on our “Sign Up” form to complete account creation
Log in to the Agent Portal and click “Invite Resident to Apply” to invite households to apply for approval
6
Resident Criteria* 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 recent 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) *Resident criteria subject to change
7
Property Criteria* Approved prospective households work with you to find a home they want us to buy. It must meet the following requirements: Property Type Single-family home or fee-simple townhome List price between $100,000 and $450,000* No condo associations, commercial or multi-family properties HOAs allowable on a case by case basis Pools are permitted in select states
Location In an approved community Size Minimum of two bedrooms Lot of three acres or less Safety Considerations No material deficiencies (e.g., major structural issues, aluminum wiring, etc.)
Sale Type Traditional sale or FSBO No REO, short sales, or auction *Property criteria subject to change *May vary in some markets
8
Property Search 1. Select “Find a Home” on the home page: - When prompted, select the metro area of interest 2. Use the white search bar to search: - City, High School, ZIP, County, Address, or MLS # 3. The search tabs allow you to narrow your search by: - Home type, price, bedrooms, bathrooms, high school, and more
9
Rental Pricing
10
Property Submittal Log in to submit the property through the Agent Portal Required items for submittal: 1) Resident Renovation Checklist 2) MLS Listing Sheet 3) Seller Disclosures 4) Photos – a full set of interior and exterior* 5) HOAs - Provide contact information (email & phone) and any other relevant information Missing information will delay our offer We typically value the property within 4-6 business hours of receiving all required information
Step 1
Step 2
*Views of front, back, side of house and yard indicating current condition of yard and any outbuildings, playsets, etc. Kitchen and baths (multiple in order to provide different views; at a minimum a view of all appliances), all bathrooms and mechanicals
11
The Right to Purchase Once an approved household finds a home: You submit a property through the agent portal
Example Pricing Structure: Cost Type Purchase Price
Home Partners will analyze the value of the home If approved, we will send the household an email outlining an estimate of the Acquisition Cost and what we will offer. We will also send a notification to the agent (via text, email, or push notification) We also outline the rent and estimated Right to Purchase prices for each lease term
Price $190,000
Closing Costs
$2,000
Make Ready Estimate
$6,000
Requested Renovations (Optional)
$2,000
Estimated Acquisition Cost
$200,000
12
Rent and Purchase Price Transparency We provide a schedule of rent and estimated Right to Purchase price for each lease term for up to five years: Households review and must agree to pricing before we make an offer Rent increases by 3.75% each year Purchase price increases by 3.5% - 5% each year Projected move-in date (minimum 10 business days)
13
Contract to Closing Once the household 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, no appraisals, and with a quick close We bid competitively at fair market value
Once we are under contract: The household signs a one-year Lease and the Right to Purchase Agreement The household provides a two-month deposit We schedule and pay for a home inspection
Once we buy the home: We perform/conduct any Make Ready repairs or agreed-upon renovations The broker receives a full co-op commission The household needs to provide the first month’s (pro-rated) rent upon move in The household may exercise the Right to Purchase at any time during their
residency for the appropriate predetermined price with 60 days notice* *Resident must secure third party financing to exercise the Right to Purchase. Approval into the Home Partners of America program does not mean that the resident will later qualify for third party financing.
14
Our Expectations Please Understand the Program Understand our Lease with a Right to Purchase Program and explain it to applicants
Honor NAR Code of Ethics and Adhere to Agency Guidelines Advocate for Home Partners – we are your client
Submit Required Documents MLS listing sheet; Seller Disclosures; Resident Renovation Checklist; Photographs Missing information will delay the process
Maintain Confidential Information Do not distribute contracts or legal documents
Facilitate Inspection Ensure access and make sure utilities are turned on
Conduct Final Walkthrough Confirm property condition on the day of closing Arrange for transfer of keys
15
Broker Opportunity
First-time homebuyers who are cautious about buying a home now, but want to be able to purchase a home in the future
Potential homeowners who recently relocated and are unsure which neighborhood to live in
Potential homeowners who cannot obtain a mortgage, but who want to live in a community with great schools
16
Marketing Resources
17
Marketing Resources Can be found in the “Marketing” section of the Agent Portal
18
Marketing Resources Can be found in the “Marketing” section of the Agent Portal
19
For more information, please contact:
(877) 234-5155 [email protected] Home Partners of America 180 N Stetson Ave, Suite 3650 Chicago, IL 60601 www.homepartners.com Follow us: Facebook - facebook.com/HomePartners Twitter - twitter.com/HomePartners
Home Partners is not a mortgage company, does not have any obligation to provide and does not provide financing and cannot guarantee or in any way assure that a resident will be able to obtain a mortgage if and when he/she wishes to exercise their 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.
