To find a good commercial agent for your transaction in Toronto ( or anywhere) You will need to find a specialist with a skill set that corresponds to your task. For someone who works with land development, the knowledge of zoning by-laws and new developments in the area is crucial. Meanwhile, for someone who works with industrial space, the research skills and ability to sift through a complex lease paperwork is necessary. If an agent is specializing in investment properties, the agent should be an investor him/herself to understand the process inside out. Also, the knowledge of Math is particularly important – income projections and pro-formas are crucial when completing a due diligence of the property.Don’t forget to interview your commercial agent prior to signing the contract with them, to see if you can work together and if the skill set matches the task.

The lease-to-own (rent-to-own) investing model cam be advantageous when real estate market slows down or when the seller/investor is looking for a predictable return. LTO(RTO) model is also favourable for a buyer who cannot afford a full down payment and/or has a bruised credit history.

In this arrangement, the buyer and seller enter into two agreements: a lease contract and the contract with the option of purchase the property at agreed price and time period. The tenant/buyer is usually required to provide a deposit upfront and have monthly payments with a portion that is adjusted versus the purchase price. Usually, if the tenant decides to cancel the contract, the initial deposit is left behind.

If you will lose your employment due to the current pandemic situation, you are unlikely to get an approval for a mortgage. You should also consider if you still need to close the transaction, maybe it would be better to get out of it if you still can. Try to communicate the situation to the seller. However, if you are still planning to close, you can consider an alternative solution - private lender, vendor take-back mortgage (VTB) or lease-to-own strategy. Consult your real estate professional for an advice.

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