00:03.63

wongga

Hello investor community this is Garrett Wong your host of the investing to win podcast today I have the pleasure of welcoming Donna Cook our local real estate investor and we're going to be discussing rent to owns today Donna how are you great. Thanks for having me so um.

00:03.69

Donna Cook

And love your longer your host of the investing to win podcast today I have the pleasure of welcoming Donna Cook a local real estate investor and we're going to be discussing rent to owns to today Donna how are you I'm great. Thanks for having me so um.

00:21.50

wongga

Why don't we start really at the basics if you could maybe tell us or the audience a little bit about yourself. You know your story and your background. Okay, well I think investing on a young since 2009 but I did come from a real estate family. My dad was the builder. He was a landlord.

00:21.10

Donna Cook

Why don't we start really at with basic 6 if you could maybe tell us or the audience more than about yourself. You know your story and your background. Okay, well I've been investinging on my own since 2009 but I do come from a real estate family. My dad was a builder. He was a landlord. And actually before he even defined it. He did rent to own. He would just help people out and maybe they had been a renter and he just tried to you know say hey how about, but we put some money towards that house and.

00:40.31

wongga

And actually before he even defined it. He did rent to own. He would just help people out and maybe they had a renter and he just tried to you know say hey probably put the money towards our house and he carried the bargain and and then he bought in the end and so basically that was.

00:53.14

Donna Cook

Um, he carried the mortgage and and then they bought it in the end and so basically that was a rent owned but it was never defined that way. Maybe he was one of the really pioneered I think so so I mean so you're growing up sort of in a real estate.

00:58.78

wongga

Jo but it was never find that way. Oh so maybe he was one of the early pioneers today. So I mean so you're growing up sort of in a real estate family like youth so he was doing rent To- owns and somewhat rentals Well basically he was a builder So okay, just and then he had.

01:10.41

Donna Cook

Family like so he was doing rental owns and somewhat rentals. Well basically he was a builder so you know just the odd time and then he had rental property. So the odd time you know you might get someone that is willing or wants to be a homeowner and needs a little help and that's what he would do.

01:18.54

wongga

So the odd time you know you might get someone that is well a who wants to be a homeowner and needs a littlell help and that's what he would do he managed quite few properties or he did like he was a contractor so did all kinds of renovations on for people all over the city.

01:27.41

Donna Cook

Um, he managed quite a few properties or he did like he was a contractor so did all kinds of renovations for people all over the city and he built a lot of houses in Stoney Mountain and stonewall. Okay, that's great. Well what about your.

01:37.70

wongga

Built a lot after this and stone at stonewall. Okay, well, that's great. Well what about your personal real estate story. You know, tell us when did you start? What is your portfolio look like today. Well I so I wonder I had it this while my kids were growing up and that was like a.

01:44.97

Donna Cook

Personal real estate story. You don't tell us when did you start with is 0 portfolio. Well I so I was um I had a business while my kids were growing up and that was like a counting bookkeeping service and actually I did it for um property managers as well.

01:56.83

wongga

<unk> bookkeeping service and actually I did corrupt Property manager as well and I was seem to not I started fliing close this with my son and we did quite a few house this then and and then we also started our rental work.

02:03.98

Donna Cook

And then in 2009 um I started flipping houses with my son and we did quite a few houses then and and then we also started our rental portfolio then as you remember we bought one from you and um and got a long stock exactly um.

02:17.24

wongga

As become. We bought one from you that goes back a long time. Um, and then point into mother strategy I did a couple work conversion had you know.

02:23.10

Donna Cook

And then just got into some other strategies. You know we did a couple of conversions and ah you know a dupe or single-family into a duplex. We built some cottages and.

02:34.11

wongga

Single family into a dulex. We built some cottages and did burs like to sit some were just absolute lips. We smoothed them off and and then that's pretty building up real estate rental portfolio after that and then also my spend.

02:39.63

Donna Cook

Did Burs and like I said some were just absolute flips. We sold them off and and then butt started building up the real estate rental portfolio after that and then also my son has his own business now with ah my other son and so I'm doing it.

02:54.50

wongga

Now with my other side that so do and myself and and then also towards land development of it. But my main needs is red. Oh okay, so um, that's a lot of stuff I think let's put some context on it. Um.

02:57.57

Donna Cook

Myself and and then also looking towards land development a bit but my main niche is rent to own. Okay, so um, that's a lot of stuff I think let's put some context on it. Um.

03:13.34

wongga

How long have you been investing in real estate if you could estimate it make the very rental with probably about 2005 okay so almost twenty years and how many.

03:13.43

Donna Cook

How long have you been investing in real estate. Um good estimate I think the very first rental was probably about 2005 okay so almost twenty years and how many how many I guess private actions deals. Do.

03:29.44

wongga

How many I guess transactions deals do you I mean ballpark it for us right? I think I'm trying to establish you know some credibility here. Um, you haven't been in it for a year and you have one flippped to your name. You know you mentioned the old land deals and a whole bunch of other things but you know put us give us some context. No I haven't got it late.

03:32.40

Donna Cook

I mean all market for us I don't know yeah which you know some credibility here. You haven't been in it for a year and you have one flip to your name. Yeah, you know you mentioned know land deals and a whole bunch of other things but you don' put us give us some context you know I haven't looked at it lately. But I know.

03:48.41

wongga

But I know couple of years of I looked and I figure we did find about 60 Wow as far wils or some maybe were kept does some li and then now I half order rent help go home to that I just purchased and with the giant.

03:49.50

Donna Cook

Couple years ago I looked and I figured we had done about 60 Um, as far as flips or some maybe were you know, kept us ah like a bur. Um, and then now I have more rental rent-ows too that which I've just purchased and with a joint venture partner and not done any renovations on. Okay well I mean I kind of spoil this through the audience at the beginning I brought you on the podcast.

04:07.20

wongga

And not okay. Wow Well I mean I kind of spoiled it for the audience at the beginning I brought you on the podcast because you specialize in rent to own properties and I personally like your philosophy on it.

04:17.90

Donna Cook

You specialize in rental own properties and I personally like your philosophy on it. So for our audience can you please Define What a rent To-ow property is well. It's the way we do it. There's lots of different ways to do it. But for me, it's finding a qualified tenant.

04:22.38

wongga

So for our audience can you please Define What a rent To- own property is well. It's the way we do. There's lots of ways to do it but me finding a couple of tenant helping up mind the host that they like and then make sure that they will be able to.

04:34.74

Donna Cook

Um, helping them find a house that they like and then we make sure that they will be able to afford it. But at this point they are a renter when we move them into the house. They have a contract with us for when they're purchasing it and then we help them purchase it in 3 years

04:42.18

wongga

Board it. At this point they are a rent when we move them into the house. They have a contract with it or where they're purchasing it and then we help them purchase it three years so in a sense of medical while we're in training. Okay.

04:54.70

Donna Cook

So in a sense are kind of a homeowner in training. Okay so typical contract you is around 3 years what I mean what is industry do is are kind of average I think it depends where you are too because some of the higher.

04:59.68

wongga

Um, so typical contract length with you is around 3 years what I mean what does the industry do is that kind of average or is it depend I think it depends where you are as some of the higher markets in Ontario quite often. They go 5 years and

05:12.86

Donna Cook

Um, markets that you know Ontario quite often. They go 5 years and I don't want to do that I feel like I want to help them get them in and out you know so talk about the talk to me about the you know advantages disadvantages of a shorter versus a long contract like what it would we try to do.

05:17.82

wongga

I Don't want to let want help them get the yeah knowledge now. So talk about the talk to me about the you know advantages and disadvantages of a shorter versus a longer contract length What? what are we trying to achieve here with a rent to own well shorter contract.

05:32.85

Donna Cook

Cheaper rental well shorter contract usually means as an investor we're making a little bit less money and then of course it's good for the rent own client as long as they can do everything they need to in those 2 years

05:36.71

wongga

Usually as an investor we're making a little bit less money. Um and then works as good for the rental client as long as they can do everything they need to for those 2 years but I've only have by that 2 years and the most are 3 Um.

05:50.30

Donna Cook

Um, but I've only had 1 at 2 years and the most are three we look at what needs to be done with their credit or also saving for that deposit because you know if you do it in a shorter time. That's a.

05:55.63

wongga

We looked at what needs to be done with their credit or also saving for that de deposit because you know if you do it in the shorter time more. They have to put aside every month okay um

06:07.30

Donna Cook

More they have to put aside every month okay um I did a little bit of research re show. But again this is more of an educational project. So I want to kind of dive a little bit deeper with the beads on what you just said so a shorter come ontra.

06:11.99

wongga

I Did a little bit of research pre-show. But again, this isn't more of an educational podcast. So I want to kind of dive a little bit deeper into the weeds on what you just said so a shorter contract you mentioned less money for the investor kind of maybe works out better for the rent to own client. The tenant.

06:24.16

Donna Cook

Mentioned less money Attorney message How maybe works on better mental clients attendance What? what do we mean there mean you say less we're talking profit then yeah because part of your profit is the cash flow or the mortgage paydown. So the longer you have a property you get a little bit more of that. But you know.

06:29.46

wongga

What what do we mean there like when you say less money we're talking profit then yeah because part of your profit is the cashched one or the mortgage. You know so the longer you have a property you get a little bit more of that. But you know we're making sure that so and made no matter what the like is.

06:44.70

Donna Cook

We're making sure that it's a win-win win No matter what the length is has to be a win for the tenant has to be a win for the investor and for myself as the rent own provider. Okay, so I'm thinking can get rental homes. Um.

06:48.43

wongga

Has be a win for tenant must be a win for the investor and for myself as the rental provider. Okay, so I'm an investor I'm thinking of getting into rent-a- owns? um maybe I partner with you Maybe I don't maybe I've I've.

07:03.22

Donna Cook

Maybe I partner it with you. Maybe I don't take the I've you know gone on Youtube and learn how to do with there. It is obviously a rental component. Um I imagine there's purchase price. How do you determine a purchase price. It's based on today's value

07:05.94

wongga

You know gone on Youtube and learned how to do this. There is obviously a rental component. Um I imagine there's a purchase price. How do you determine a purchase price. It's based on today's value you know it'll be a value in the fears.

07:21.21

Donna Cook

Ah, no, it'll be the value in the three years and we're looking at the market. What's it been doing the last five years you know where's it located. Where do we think that market is going and you know it's a discussion with our our realtor as well. And.

07:25.70

wongga

<unk> looking at the market. What's that they're doing in the last five years where is it located where do we think that market' is going and it's so discussion our our real here as well and and that has to be expense and we want to know to you know.

07:39.74

Donna Cook

And it has to make sense and we want to know too that you know course there's no 100% guarantee in real estate but we're not setting it too high that it's not going to get qualified for at that price in 3 years okay so I mean for we guys all so we have toate how.

07:43.69

wongga

Course there's no hundred percent rentive real estate but we're not getting it too high that it's gonna get qualified for at that price 3 years okay so I mean nobody has a crystal ball so we have to use history how how are we.

07:59.58

Donna Cook

Are we determining our percentage. Yeah, mostly looking at a percentage and um, but historically Winnipeg is a very stable market and even the last couple years with all the price spikes and that we were still able to buy.

08:00.95

wongga

Determining that are you using a percentage model or yeah, mostly looking at percentage and but his historic win pay is the very stable market. Okay, and even the last couple years with all the price spiked then that we were still able to buy good.

08:18.48

Donna Cook

Good You know I mean like we just didn't go into those bidding Wars or you know or maybe we did but it's still we didn't go crazy. We still had to buy it at a decent price you know and and you know you want a good starting point for that client and then and make sure that it.

08:19.16

wongga

You know I mean like we just didn't go into those fiting mores we you know or maybe we did but it's that we didn to go crazy. We still have to buy at a de of price you know and and you know you want a good St start to point our client and then make sure that it does appreciate properly and it's for new.

08:35.28

Donna Cook

Does appreciate properly and it's going to appraise for that in the 3 year term right? right? Okay, so that's where the knowledge based on the experience comes from um pres show you have mentioned you know that you're using a percentage I guess based on history of what.

08:38.77

wongga

For that in the 3 year term right? right? Okay, so that's kind of where the knowledge base and the experience comes from um pre-show you had mentioned you know that you're using a percentage I guess based on history of what. I guess what real estate appreciates that every year is that like a national average or do you use a Winnipeg average chimppeke. And yeah, you know getting a what we want. Sure. Yeah I guess area is important too. Exactly.

08:54.70

Donna Cook

Guess what? we just appreciates that year beside National coverage or do you use what they ever the winnipeg and that area and you know depending on what we bought it for and what you know so support to exactly? Yeah okay, are there any or print.

09:09.31

wongga

Okay, are there any different types of houses that this works better for or neighborhoods. Well I'm doing all of them in a good neighborhood I don't want to be in an area. We're concerned about well we're only buying houses that cho they're in which shape. Not only.

09:11.50

Donna Cook

Use of houses that this works better for or neighborhoods. Well I'm doing all of them in a good neighborhood. Um I don't want to be in an area. We're concerned about. We're only buying houses that are in good shape. Um, not only are we worried about let's say the 3 years but we want it to be a good investment for the tenant once they're out of the program. Um, in general, we're looking at a 3 bedroom 2 bath full basement garage and then if for some reason and that it doesn't work out then we still have plan b.

09:29.30

wongga

Read about. Let's say the 3 years but we want it to be a good investment for the tenant once they're out of the program. Um, in general, we're looking at a 3 bedroom 2 path full basementage and then if for some reason that it doesn't work out then we still have plenty e at see there. Don't if.

09:47.40

Donna Cook

And see you know if we wanted to sell it or you know rent own it to someone else or you know, whatever and then I have them in Winnipeg but also in the surrounding communities too. If it's a vibrant community that's growing and they're close to a big center. Let's say like.

09:48.89

wongga

A sellage or rent own it to something else or you know, whatever. Okay and I have that way to pay but also in this renting communities to if it's a vibrant community that's growing and they're close to a big center. Let's say like you know I consider accivator.

10:05.32

Donna Cook

You know I consider steinback a bigger center and or if it's close to the city. Okay, so ah when I say clients times I think about my investor for my my other company my management company but when you say client you're speaking about a rent own tenants right? Yeah, okay so they are what I asked.

10:07.78

wongga

Venor and or gets close to the city. Okay, so you have when I say clients sometimes I think about my investors for my my other company my management company but when you say client you're you're speaking about a rent to own tenant. Okay so they are. When I asked about areas I mean really, that's a determining factor too because you have a client who wants to basically purchase a house. This is a house purchase for them even though it's structured as a rental at least for a shorter period of time from the investor right right? and we're looking at area.

10:24.97

Donna Cook

Areas and we really that's a target with factor too because you have a client who wants to basically purchase a house. This is a house purchase for them even though it's structured as a rental at least for shorter period of time from the investor right. Right? And we're looking in areas we're looking at what can they afford? Um, what are their needs and we want to make sure we get something that they need or else. They're not going to stay in it and it has to work for their family and then sometimes it takes a while sometimes we find something right away.

10:44.22

wongga

Have board. Um, what are their needs and we want to make sure we get something that they need or else. We're not going to Scan and it has to be for their family and then sometimes it takes a while sometimes we find something right away and and then usually they have an n area that like put.

10:59.90

Donna Cook

And and then usually they have an an area they like let's say because of schools or work or something and so we try to get that as well. Um, let's talk with clients for second plans who would want a rent on rather than a kids canada go mar house.

11:03.16

wongga

Because of schools are work or something and so we try to get that as well. Okay, um, let's talk about the client side for a second. The tenant who would want a rent to own rather than a typical hey I'm going to go out and buy a house. Why don't you walk me through that. It's good.

11:20.40

Donna Cook

Don't you walk me through that it's going to be someone that has not been able to save up for their down payment yet. So if they have 10000 now and you know let's say with the house. They're going to purchase. They actually need 25000 well then over those 3 years they'll be able to save that 15000 the difference.

11:22.27

wongga

Um, one that has not been able to save up for their dam payment yet and so if they have 10000 now and you know let's say with the house they're going for it just they actually need 25000 well then over those 3 years they'll be able to save that 15000 the difference it could be someone that.

11:39.16

Donna Cook

Um, it could be someone that's self-employed and doesn't have their 2 years history yet. It could be someone new to the country and ah, you know, maybe someone just going through a divorce you know hasn't worked out everything.

11:41.55

wongga

Employyed and doesn't have their 2 years history yet could be someone new to the country and you know maybe someone just going through a divorce you know has like worked out everything or someone with for credit you know, maybe they had some glitches and then we'll help them.

11:53.95

Donna Cook

Or um, someone with poor credit. You know, maybe they had some glitches and then we'll help them work through that and fix that by the time they are going for their mortgage financing. Okay, that's why you would break it down a few minutes ago that maybe years.

12:00.28

wongga

Work through that and fix that by the time they are going through their mortgage finance. Okay, so that's you referred to that a few minutes ago that maybe 2 years as a contract length isn't long enough so you're also referring to the ability to repair somebody's credit. Okay.

12:11.36

Donna Cook

Contract Room isn't long enough so you're also referring to the ability to repair exactly right? Yes, yeah, okay I know that I alluded to that at the beginning of the podcast when we introduced you. But why don't you tell us you're unique.

12:19.18

wongga

Um, I know that I had alluded to that at the beginning of the podcast when I introduced you? Um, but why don't you tell us your unique kind of strategy and how you counsel your clients I find that very fascinating. Well we have a couple people but we do have a mortgage work or she does there.

12:27.90

Donna Cook

Kind of strategy how you can your clients that are very fascinating. Well we have a couple people but we do have a mortgage broker. She does their initial assessment and so we're looking at can they afford the rent and the option payment right now.

12:38.61

wongga

So assessment and but we're looking at can they afford the rent and the option payment right now and then also what do they need to do with their wage and you know where their credit is and their debt. What can they afford in 3 years

12:46.82

Donna Cook

And then also what do they need to do and with their wage and you know where their credit is and their debt. What can they afford in 3 years so she does that initial assessment and then once we all come to ah an agreement on where we're at with that.

12:58.20

wongga

Sheetta fa mic she assessment to plan months. Well how come to ah an agreement on where we're at with that she will pass that through the 3 year process she keeps checking on them and then we also have someone else that will do.

13:05.95

Donna Cook

She will counsel them through the 3 year process she keeps checking on them and then we also have someone else that will do um more of the budget work with them. They have workshops that they can go to on just in general finances like insurance and you know.

13:14.53

wongga

The budget work with them. They have workshops that they can go to on just in general finances like insurance and you know how how that all works that are budgeting and goals and goal settings and then we keep track of their credit.

13:23.44

Donna Cook

How how that all works budgeting and goals and goal setting and then that we keep track of their credit report too. So they have to track it just on the free reports like borro well or credit karma and then about once a year we're going to check in as well too.

13:32.95

wongga

Too. So they have to track it just on the free reports like Bor well or credit karma and then one senior year we're gonna check camp as well too and make sure it's on track getting better and sometimes there's a you know mistake or a mistake with e facts. We've can fix that or.

13:43.00

Donna Cook

And make sure it's on track getting better and sometimes there's a you know mistake or mistake with ecofax we can fix that or we also make sure that they have to check in with us and don't go buy a car or something and then that you know that wrecks their chance of getting a mortgage. Yeah Google that I think are.

13:52.29

wongga

We also make sure that they want to check in with us and don't go buy a car or something and then that you know have direct their chance of getting a mortgage. Yeah, you know what? I think our our listeners will really find that perspective valuable because when you talk about.

14:02.75

Donna Cook

Listening where we find that perspective valuable because when you talk about It's not just enough to repair somebody's credit. We got into this situation for whatever you think? So you're also teaching habits exactly yeah and we're looking at people that maybe had a life situation or.

14:09.40

wongga

It's not just enough to repair somebody's credit. They got into this situation for whatever reason so you're also teaching habits exactly yeah and we're looking at people that maybe had a life situation or you know maybe they were crazy but that's behind them right? You know we just we need to have the type of.

14:21.96

Donna Cook

You know, maybe they were crazy but that's behind them. You know, ah you know we just we need to have the type of people that are willing to work at it and they have to have that right attitude and be willing to learn. Yeah, it truly seems like a win-win. Yeah, or you take exactly.

14:28.33

wongga

Know that willing to work at and they have to have that right attitude and be willing to work. Yeah it it truly seems like a win-win for for all parties involved. So you have an investor who has a property. Um, they're negotiating with a client a tenant they are going to be getting.

14:39.45

Donna Cook

You have an investor who adds a property they're negotiating with a client tenant they are going to be getting or a monthly rent for a contract length period or let's say three years right? if I can summarize that ah they're going to have a future purchase price with a bit of profit in there and we also.

14:47.80

wongga

Monthly rent for a contract length period where let's say three years right? if I can summarize that they're going to have a future purchase price. So there's a bit of profit in there and they also have the benefit of this whole mortgage being paid down for an additional three years okay Okay, so um.

14:59.41

Donna Cook

Benefit of this whole mortgage being paid down for an additional three years exactly? Yeah Okay, okay, so um, maybe I I think I your kind of but I'm goingnna ask to feel the benefit of the audience so there is grant but like you said you have to build up this down paymentut.

15:07.26

wongga

Maybe I I think I understand this but I'm going to ask this for the benefit of the audience so there is rent but like you said they have to build up this down payment. Whatever that amount is so how do how do you do that on ah on a rental contract. Well, it's not part of the rental contract. It's completely separate.

15:18.20

Donna Cook

Whatever that money is so how do you do that on on rental contract. Well, it's not part of the rental contract. It's completely separate so we do have ah you know, just a standard rental agreement and condition report and that and then.

15:27.40

wongga

So we do have you know, just a standard rental agreement and condition report that and then separate from that and it's a 3 hree-year term we go raise some rents and then separate from that we call an auction to purchase the agreement and then in that agreement it shows everything that's.

15:34.38

Donna Cook

Separate from that and it's a 3 hree-year term we don't raise the rents and then the separate from that we have what's called an option to purchase agreement and then in that agreement it shows everything that's expected of them and expected of us and it'll tell it.

15:46.64

wongga

Expected of them and expected bus and and it'll tell in it. It shows what their purchase price is in 3 years that's never going to change even if the prices went up 50000 or whatever you know it's still going to be that price and shows how much they have further you deposit.

15:51.42

Donna Cook

In it. It shows what their purchase price is in 3 years that's never going to change. Um, even if the prices went up 50000 or whatever you know it's still going to be that price and then it shows how much they have for their deposit now and then how much they have to save over those 3 years

16:06.41

wongga

Now and then how much they have to save over those 3 years and they have to pay us that amount monthly. So then we know you know we audit they're ready to um and they come to the end of their chair. Okay.

16:10.34

Donna Cook

And they have to pay us that amount monthly. So then we know you know we have it and they're ready to go when they got come to the end of their term. Okay, so you mentioned you know you want people who don't necessarily have the entire down payment. You use the exact $10000 and let's say that.

16:20.50

wongga

So you had mentioned you know you want people who don't necessarily have the entire down payment like you use the example $10000 and let's say that I mean I don't know what loan to value ratios. We're talking about here like.

16:30.22

Donna Cook

I mean I don't litlock value reach. We're talking about here like would rent client have to be put down 20% or they coming down less would you tend to be they're doing ah well we like to collect 3% of the purchase price.

16:33.75

wongga

Would a rent-to- own client have to put down 20% or are they putting down less like what? what do you typically see depending on conditions. So well we like to collect 3% of the purchase price. Okay and then went get them to the mortgage fincing we're having them say 7

16:46.99

Donna Cook

And then whence we get them to the mortgage financing. We're having them save 7% so 5% down and then we save 2% for the closing costs for them unless.

16:52.69

wongga

And so 5% down and then we pay 2% for the closing costs for them unless because of credit or whatever you know special situation. We may have them save 10% for that for that mortgage financing.

16:59.69

Donna Cook

Because of credit or whatever you know special situation. We may have them save 10% for that for that mortgage financing. Okay, so for a $300000 house you're going to have to come up with over a period or 3 years about 10% of that which is thirty Thousand Ten thousand

17:09.33

wongga

Okay, so for a $300000 house they're going to have to come up with over a period of 3 years about 10% of that which is 40000 in your particular business is upfront. So now they're splitting up a $20000 um option.

17:19.64

Donna Cook

Your particular business is upfront. So now they're splitting up $20000 um option down payment. Whatever you want to call it for for thirty six months right so if I add do them half on that that several hundred dollars more per month but which were above.

17:27.88

wongga

Um, down payment. Whatever you want to call it over thirty six months so if I I can't do them math on that. But so but it's several hundred dollars more per month over and above the rent. Okay, so how how can a typical person afford that or is this one of the unique things of of the ah.

17:39.60

Donna Cook

Correct right? Okay so how how can a typical person of afford that I resist when you meet bring up of ah a proper properly qualified Bre client. Well they all have a good job for sure. Yeah, you know they have to have the correct income and like.

17:47.51

wongga

Ah, proper properly qualified rent- own client. Well they all have a good job your share. You know they have to have their correct income and you said they have to be able to afford this and so that's why you help them with their budget and you know.

17:58.60

Donna Cook

You said they have to be able to afford this and so that's why we help them with their budget and you know see what should they be paying off first if there's some credit things to pay down and just make a proper plan and they have to follow it.

18:05.68

wongga

What should they be paying off first if there's some credit things to pay down and just make a proper plan and they have to follow it and if they don't have it on that it just doesn water. Okay, so um, again, summarizing for my own brain and I'm taking notes here. Um.

18:14.85

Donna Cook

And if they don't have the income then it just doesn't work. Okay, so again summarizing from my own brain I don't taking notes here um an ideal rental or rental and client and has Dc income. They have the right intentions.

18:25.38

wongga

An ideal rental or rental- owned client then has decent income. They have the right intentions for whatever reason they either don't have the entire down payment or something in their previous life either a breakup separation or maybe they were just young um has ruined their credit and they can't.

18:32.33

Donna Cook

For whatever reason they either don't have the entire no pment or something in their previous life either a breakup separation or maybe they were just young um has root credit and can't have a typical mortgage right now they then find you um, find.

18:44.32

wongga

Um, have a typical mortgage right now they then find you um, find the house of their dreams right? because this is all you're not just putting them into a house. They're actually looking for a house that works for them and then at the end of that you've now repaired their credit.

18:50.29

Donna Cook

House of their dreams right? because this is all you're not just putting them into a house. They they're actually looking for housing works for them and at the end of that you now repair their credit to the point that they can qualify your for mortgage on their on their own and you have the data payment that already ready. So now all they have.

19:01.14

wongga

To the point that they can qualify or for a mortgage on their on their own and you have the down payment already ready. Um, so now all they have to do is basically qualify and they're already in the house and everything is a win-win right? and or send theres yes.

19:10.24

Donna Cook

Basically qualify and they already in the house and everything is a window right? and of course then there's the investor was part of it too because they're helping buy that house. Yeah, so yeah, on the investors but they're providing that house. Maybe they are maybe they've renovated it so that it is very you know.

19:21.10

wongga

Yeah, so yeah, on the investor side they're providing the house. Maybe they are maybe they've renovated it so that it is very you know desirable for this person and okay so when I'm thinking about it.

19:29.72

Donna Cook

Desirable for this person and okay so when I'm thinking about it as from an investor point of view I'm still collecting grantes Still'll have a tenant I sell the leas agreement and yet they're going to be buying a house in the future who Handles Weakness rent The tenant does interest.

19:36.94

wongga

As from an investor point of view I'm still collecting rent I still have a tenant I still have a lease agreement and yet they're going to be buying the house in the future who handles maintenance in the rent to own the that is interesting. Okay, and the way I started it up 2 days I'm working with joint venture partners. So as the rental provider.

19:49.58

Donna Cook

Yeah, and the way I set it up too is I'm working with joint venture partners. So as the rental provider I provide all the contracts you know I have ah everything in place. We keep keep up with what's going on in the industry because things change.

19:56.92

wongga

I Provide all the contracts you know I have everything in place keep keep up with what's going on in the industry because things change you never know the phc main change. There are rules tomorrow and we have to keep up with that on people think they are qualifying and I do find the rent home tenant.

20:05.74

Donna Cook

You never know Chc may change their rules tomorrow and we have to keep up with that on how they are qualifying and um I do find the Ranton tenant first because I like I said I feel like they will be likely to stay in the house longer if they are able to pick their house.

20:16.61

wongga

First because I can like said I feel like they will be likely to stay in the house longer if they are able to pay their house I have a realtor specific for that We work with she works with them to find the house and then I bring in ah, an investor and ah they qualify for the mortgage.

20:24.68

Donna Cook

Um I have a realtor specific for that We work with she works with them to find the house and then I bring in ah, an investor and they qualify for the mortgage and then I manage everything so I will manage the house. Ah, the tenant.

20:36.30

wongga

And then I manage like everything so I will manage the house the tenant and the investment to you know with collecting rents and paying the mortgages and paying out the cash. Well okay, is it very typical for the tenant to handle maintenance and a rent to own a bigger typical. Okay.

20:41.30

Donna Cook

And the investment you know with collecting rents and paying the mortgages and paying out the cash. Well okay, is it very typical for the tenants to handle maintenancex at a rental ah very typical. Yes, so that's typical but I mean how do you? what happens if the roof goes or.

20:55.99

wongga

So that's typical but I mean how do you? what happens if the roof goes or the furnace or that's something big is there are there limitations to it? Yeah well what we do is to first we're buying a house that likely that's not going to happen so far it happened you know creditella you never know what could happen and then if the furnace.

21:00.62

Donna Cook

<unk> something vague is there other limitations to it. Yeah well what we do is too. For first we're buying a house that likely that's not going to happen so far it hasn't you know, but you never know what could happen and then if the furnace went well then we will purchase a new furnace.

21:15.62

wongga

And well then we will purchase a new furna you know myself and the investor but then that gets added on to their purchase price because now their house has a brand new forest. It's worth more exactly right? Yeah and it's something like a roof you know I don't think that's gonna come up because we don't.

21:19.46

Donna Cook

Um, you know myself and the investor but then that gets added onto their purchase price because now their house has a brand new furnace. You know exactly? yeah and something like a roof you know I don't think that's going to come up because you know we know what we're looking at yeah and we.

21:35.48

wongga

We know what it's predictable right? and we we do get home inspection as well too. So we want the tenant to agree to the home inspection. They agree with everything that has come up. Is it Home inspection is perfect and then also our investors who agree to it as well.

21:37.72

Donna Cook

We do get home inspection as well too. So we want the ah tenant to agree to the home inspection. They agree with everything that has come up because no home inspection perfect and then also our investor has to agree to it as well. Okay, so I'm an investor wanting to get into this asset class.

21:53.12

wongga

Okay, so if I'm an investor wanting to get into this asset class. It sounds to me like I'm going to be doing myself a favor to be looking for a property that is distressed So that's no different than trying to flip something or maybe a Bur but then I want to fix everything up to.

21:57.27

Donna Cook

It sounds to me like I'm going to be doing myself a favor to be looking for a property that is distressed So that's no different than trying to flip something or maybe ever. But then I want to fix everything up to purchase quality and also make sure the bones of the property.

22:09.44

wongga

Purchase quality and also make sure the bones of the property have already been fixed so I don't have any surprises later for myself like when I work 1 venture partners. They don't pay that I will do that. Okay, it right? I'll take the risk on that. But at most of ours we find.

22:13.26

Donna Cook

Have already been there So I don't have any surprises later for myself like when I work with my joint venture partners. They don't do any of that I will do that if it's needed I'll take the risk on that but most of ours we're just buying as is.

22:29.60

wongga

As it is okay because we're buying good propertiesc. You can do more that way just buy lots of housessured that don't need anything and needs a little pay for whatever they can do it but okay, most of the time is just announcing. Yeah I guess ah.

22:30.77

Donna Cook

And because we're buying good properties. You can do more that way just buy. Ah, there's lots of houses out there that don't need anything and if it needs a little paint or whatever they can do it but most of the time is just an nazz is house. Yeah I guess if I was pay attention. You did mention the wheeltor I you going around with.

22:46.64

wongga

If I was paying attention. You did mention a realtor and and they're going around with with your clients. So you're kind of finding these clients that fit the model that's going to work for you and they're choosing whatever houses. Obviously they're not going to choose something that maybe they can't see past you know.

22:50.76

Donna Cook

Your clients or you're kind of finding these clients that fit the model that's going to work for you and they're choosing whatever houses. Obviously you're not going to choose something that maybe the cats be passed. You know stinky floors right? exactly? Yeah, you're looking at the same houses that anybody else would except you're helping them.

23:02.89

wongga

Stinky floors and and peeling paints. So they're looking at the same houses that anybody else would except you're helping them um, achieve their goals in 3 to 5 years okay and they make do a little bit but upgrade themselves too. They can do that you know it's their house basic right? But you enjoy have animals they can.

23:09.63

Donna Cook

Achieve their goals in 3 to 5 years right yeah and they may do a little bit of an upgrade themselves too. They can do that you know it's their house. Basically um, but you know they can have animals they can paint the walls they can do different things and if they want to upgrade something a little bit more.

23:22.95

wongga

Walls They can do different things and if they want to upgrade thing a little bit more. They just have to check in with us and make sure it's done correctly as permits if that's what's needed so again, contracts and paperwork protect yourself. You know don't do this on a handshake right? Well, that's.

23:28.31

Donna Cook

Um, they just have to check in with us and make sure it's done correctly and as to permits and you know if that's what's needed so again contracts leave the work protecture. So you know don't do this on a handhake. Yes, well, that's why you want to work with someone that knows what they're doing because that's where rentones don't go well.

23:42.68

wongga

Ah, you want to work with someone that knows what they're doing because that's where don't go well is's if they're not done properlyly or not with the contract or you know somebody who smart taking care of that 10 agenda their finances. Okay, so that is interesting because let's talk about the risks.

23:48.25

Donna Cook

Is if they're not done properly or not with the contract or you know somebody's not taking care of that tenant and their finances. Okay, so that is interesting because let's talk about the risks. Not even the risk but I would like to explore that for a second. What are the night here scenarios

24:00.78

wongga

Um, not even the risks but I would like to explore that for a second. What are the nightmare scenarios. What can happen and go wrong in a typical rent-a- own. Well I have night there I had a couple challenges and that but.

24:07.86

Donna Cook

Can happen at the wrong in typical mental. Well I haven't had any nightmares I know I've had a couple challenges on that but well I've heard more nightmares I think from the investor part of it. Um.

24:17.91

wongga

What have you heard though I mean certainly I've heard nightre stories. Yes, certainly nighthoods I think on the ester sort of event um of the contract not being great. You know things like that and then we have that contract and it's that's the way it is. That's.

24:26.30

Donna Cook

Of the contract not working out not being right? Um, you know things like that and we have that contract and that's that's the way it is. That's what they're buying it for and it lays out everything that everybody is expected to do to make this.

24:38.14

wongga

Buying it for and it lays out everything that everybody was expected to do to make this the win-wins situation. Yes, and of course there's no guarantee that with this tenant We do a lot of upfront work and you know we spend a lot of time.

24:46.21

Donna Cook

Ah, the win-win situation. Yes, and of course there's no guarantee that with this tenant we do a lot of upfront work and you know we spent a lot of time qualifying them and there's not 100% guarantee that they are going to be the right tenant.

24:57.49

wongga

Qualifying them and there's not a that guarantee or they are going to be the right tamment but they do have that deposit upfront so they they could lose it if they're going to do something like correct the house and then those deposit will go to those.

25:03.50

Donna Cook

But they do have that deposit upfront so they have ah they could lose it if they're going to do something like wreck the house and then that deposit will go to those repairs but the other thing too that could happen is you know a life change and they.

25:16.52

wongga

Repairs but the other thing too that could happen is that you know a like change and they don't buy the house. Well we will give them a portion of that deposit that back. You know sometimes life happens and yes, they've broken a contract but then you know maybe we can also make it.

25:21.93

Donna Cook

Don't buy the house. Well we will give them a portion of that you deposit that back. Um, you know sometimes life happens and yes, they've broken a contract but then you know maybe we can all still make it a win-win and work through that.

25:36.17

wongga

And work through that and then if that's the case and they didn't buy it. Maybe them a portion of their reposit back then it's up to be in our investor. Do you decide? Okay, what's our plan B want. Do we want to go get another rent toal penant. Do we want to a sellot. Do we want to rent it. There's.

25:38.32

Donna Cook

And then if that's the case and they didn't buy it and we gave them a portion of their deposit back then it's up to me in our investor did decide. Okay, what's our plan B now. Do we want to go get another rent own tenant. Um, do we want to sell it. Do we want to rent it. There's.

25:55.89

wongga

All kinds. Well, you know that's what's great about the estate. There's all kinds of different strategies. No for sure and I mean if you can negotiate that with your tenant or maybe you know depending how your contract's written. It's written in stone and these are the consequences. Um, but from what you're saying somebody just deciding to change their mind.

25:56.42

Donna Cook

All kind. Well you know that's what's great about real estate.. There's all kinds of different strategies. So sure and I mean if you can negotiate that with your talentant or maybe know depending how your contracts were mix were been sown and these are the consequences. Um, but for where you're staying. Still you just deciding to change their mind. Um I guess like happens and you kind of the situation's different right? Yeah and and somebody we had actually did a better job than what we anybody expected. You know, got a new job. They got you know more rent or um, higher income. They fixed their credit faster.

26:15.35

wongga

Um I guess life happens and you kind of every situation is different. Yeah and and something we had actually did a better job than what anybody expected. You know, got into love. They got more rent or um, higher income they fit for credit fo and they ended up on house.

26:33.56

Donna Cook

And they ended up buying a house in a different area which was their first choice before but they couldn't afford it so we gave them a portion back and they you know win-win for them. They got into that area. They really loved myself and my investor we put a little bit of money into a renovation on the basement and then we sold it and.

26:35.20

wongga

Different area was their first choice before but they couldn't afford it. Okay, so we gave them abortion back and they we win-win for them. They got into that area. They really loved myself and my investor we put a little bit of money into rent another basement and then we sold it in.

26:53.32

Donna Cook

Actually went for more than what we were originally going to sell for in another couple of years okay what happened at the end of the contract with the damage something in the house. But I think it's their house as long as they're qualifying for it long as they qualify and it appraise us properly. You know? yeah.

26:53.36

wongga

Actually went for more than what we were originally okay in another couple of years okay what happens at the end of the contract if they've damaged something in the house. But I mean it's their house technically as long as they're qualifying for it long as they qualify and replace it properly right? Yeah yeah.

27:12.73

Donna Cook

So and you know we're checking on it Anyway, we'll know if something's going on like that and I've not had anyone damage anything because you know they want to buy it. It's their house while you're also I think what I'm thinking about is.

27:12.75

wongga

And you know're protecting on it anyway will know if something's going on like that and I've not had damage anything because you know they want to buy it in their house. Well, you're also vetting them properly I think what I'm thinking about is. You know, no disrespect if you're listening out there audience if this is you and I I was like that too on my first rental you you buy a rental. You think how easy can it be? You know, throw an ad on Kajiji or Facebook they seem like a good person when you're you know, walking through you use your gut so to speak and you handshake an agreement.

27:30.17

Donna Cook

You know, no disrespect if listing on their audience. Yeah I like that too on my group rental you vi rental you think how easy can it be you know, throw an ad on because vi your Facebook they seem like a good person when you're walking through you use your request so to speak and hands shake an agreement.

27:48.89

wongga

And six months later they haven't paid you in four months and you go in there and now you've got junk hauling and everything else and animals. Um I guess the same thing can happen in a rent-to- own if you're not doing your your due diligence it could. But then they deposit that ten miles of dollars but your month would be.

27:49.10

Donna Cook

And six months later ifkeeper were in four months and you go in area them you put truck calling and everything else and animals. Um I guess anything can happen to be right to own if you're not doing your your due diligence. It could. But then they have that deposit that $10000 or their monthly deposits like they're not going to get that. It's not going to go towards a you know a purchase if they're damaging the house and not paying rent and so then we could evict them on non-payment or rent just like a regular tenant but um.

28:07.30

wongga

Okay, they're not going to be about. It's to go towards a you know a purchase if they're damaging the house and not paying rent right? and we be them on re paid for rent just like a regular tenant right? that like I said Everybodys so happy to be in a home and most of time there's.

28:21.10

Donna Cook

Like I said everybody is so happy to be in a home and most of the time they're families. We had one family that they are foster parents and they are third generation in the same rental house.

28:26.68

wongga

We have one family believe that we are foster parents and they are large in the same rental house and it's just crazy as that we are able to get them into a home that they love in a smaller community.

28:37.88

Donna Cook

And it's just crazy and so we were able to get them into a home that they love in a smaller community and break that rental cycle. Wow Yeah, no like I love this because it is that wick owner just not just know sometimes in questions from Landlords get bad and.

28:45.60

wongga

Break that my cycle. Wow yeah, no like I love this because it is that win-win component. It's not just you know sometimes investors and landlords get a bad name. You know the big bad landlord and always wanting your rent increases. It seems like a really good strategy. So um, let's talk for a second about.

28:55.78

Donna Cook

A mor home granting increases. It seems like ae strategy so second about qualifying for revision three years I know you've touched on it. Um, how how does honey worth poor credit actually qualify for mor in three short years like

29:03.38

wongga

Qualifying for a mortgage in 3 years I know you've touched on it. Um, how how does somebody with poor credit actually qualify for a mortgage in three short years like how fast can somebody really repair their beacon score maybe they've had a bankruptcy does it happen that quickly it can um.

29:15.31

Donna Cook

Something to really repair their bes for maybe bankruptcy does it happen that quickly it can um you know again, that's my mortgage broker and credit adviser telling us what can be done and how fast usually they're past the situation.

29:23.26

wongga

You know again, that's my mortgage but worker credit adviser telling us what can be done and how fast usually they're past the situation but maybe they are in consumer proposal and it's getting being finished off and you know ideally we want them to have.

29:34.80

Donna Cook

Um, but maybe they are in a consumer proposal and it's getting finished off and you know ideally we want them to have 2 years after the consumer proposal is done and and then you have to establish new credit and the bank wants to see that you know they want new credit.

29:42.32

wongga

Years after the consumer proposal is done and and then you have to deal with your credit bank wants to see that you they want new credit with let's say yeah a bank card. Um, the capital one. Okay, all right.

29:53.74

Donna Cook

With let's say a you know a bank credit card. Not the capital one. Okay, all right? So for an investor want best strategy. What are some of the challenges that you face in the path into days. Um I think the hardest is getting the right client The right.

30:00.50

wongga

So for an investor wanting to get into this investment strategy. What are some of the challenges that you've faced in the past in the early days I think the hardest is getting the right client the right tenant buyer and just over time. You know we've come up with.

30:13.88

Donna Cook

Tenant buyer and just over time. You know we've come up with you know procedures and we just follow that system all the way through and if they don't meet any of those that criteria then you know we move on.

30:19.87

wongga

Seigers and we just follow those that system all the way through and if they don't meet any of those that criteria then you know we move on to someone else. That's going to. It's going to work out for them. Okay, and and it's a challenge fighting a.

30:32.17

Donna Cook

Someone else that's going to. Ah, it's going to work out for them and and it's a challenge finding a house too sometimes too and especially the last couple of years. There's just not enough on the market and it can take a little bit longer but you know we just stick to it. We've got lots of connections and.

30:39.13

wongga

Sometimes too and especially the last couple years. So there's just not enough on the market and great. You can't take a little bit longer but you know we just stick to it. We felt lots of connections and usually find something. So yeah, if you're buying on market. You're also competing with.

30:51.29

Donna Cook

Usually find something. So yeah, if you're park lot market. You're also competing with I mean last year there were multiple offers and things like that right and some get friends. Yeah, and then you have connections. So sometimes a real tro bring you something off market and that sort of thing and so that certainly helps when you've.

30:57.70

wongga

I Mean last year there were multiple offers and things like that that I guess it's no different. Yeah and then you have connections. So sometimes you are usually playing something off market sort of thing and so that certainly helps when you've been in business for a while and you know people in your network.

31:11.60

Donna Cook

Been in business for a while and you have a lot of ah you know people in your network. Yeah, when we say your network is your network right? Yeah, that's it Yes I do a lot of networking. Well it is really no as a matter of what industry frames. Okay.

31:16.29

wongga

Yeah, what do they say your network is your net worth I I think yeah I think that's what it is. Yeah okay I do a lot of networking. Well it is really who you know doesn't matter what industry you're in right? Um, okay so you mentioned joint venture Partners to.

31:30.77

Donna Cook

You mentioned joint Recorders do Jvs rent as those opportunities things differently yes because once they understand what it's about um I have people coming to me. They just want to help people.

31:34.86

wongga

Jv's view rent-ows and those opportunities any differently? Yes, as one say and you understand what it's about by happy moneying to me. They just want to help people and that's great. You know they're somewhere in there your portfolio and and your.

31:47.26

Donna Cook

And that's great. You know they're somewhere in their their portfolio and they have a room for you know to do some rent to owns and they love helping people but in the end we're still making money. It's still an investment. It still has to be done properly but they just have that little extra that they want to help people.

31:52.73

wongga

To do some rent to owns and they'd love helping people but in the end we're still making money. It's still an investment. It still has to be done properly but they just have that little extra that they want to help people. They also like that the the renovations are paid by the tenant. There is no realtor fees.

32:04.83

Donna Cook

They also like that the the renovations are paid by the tenant. There is no realtor fees and no vacancies and so you just have a little better cash flow I guess it's predictable and probably a lot more stable because you haven't tenants for 3 years where

32:12.13

wongga

No vacancies and so you just have a little better. Well cash flow I guess it's predictable and probably a lot more stable because you have a tenant for 3 years with you know, um a windfall as well. Exactly and you know we have that great tenant and.

32:24.50

Donna Cook

You know windfall as well. Exactly and you know we have that right tenant and and then as for the investor I'm taking care of it. So it's completely passive to them once they have purchased the the home and you know, um, secured the mortgage.

32:32.60

wongga

And then for the investor I'll be taking care of it. So it's completely passive to them once they have purchase the the home and you know put secured the mortgage. Okay I do have a lot of people coming to me from placess like Ontario and Dc where you know their house is $1000000 were

32:44.40

Donna Cook

I do have a lot of people coming to me from places like Ontario andbc where you know their housing is $1000000 where here you know everything we have right now is around. You know 150 or and or 350 so they could buy like pretty well 2 3 houses here compared to their own.

32:51.74

wongga

Here. Everything we have right now you know hundred and fifty year and or 350 so they could buy like all 2 3 houses here and compared to their own.

33:03.91

Donna Cook

Provinces Yeah for sure and you also get you know the market as well and you have that clientary list you find there's a waiting list of of tenant clients trying to find houses.

33:03.92

wongga

Provinces Yeah, no for sure and you also get you know the market as well and you have that client list you find there's a waiting list of of tenant clients trying to find houses. We have made a list.

33:19.93

Donna Cook

We have ah quite a list right now and they're all in different stages of getting qualified and ah you know sometimes you're waiting for them to send their documents in or the odd time like we have a couple that were saying okay give us a call in three months because we just want them to be a little more stable in their job and then.

33:21.62

wongga

Now they're all in different stages of getting qualified and you know sometimes we wait for them to send their documents in or the odd type like we have a couple that we're seeing okay give us a call in three months because we just want them to be a little more stable in their job and we're still ready to going but you know we just.

33:38.40

Donna Cook

We're still ready to keep going but you know we just need a little bit more from them because we want someone that we know well or feel that they will. They are in a stable job and they're not going to lose it in a month down the road are you without the provinces. We're rent to homes which is coming.

33:41.35

wongga

Little bit more funland because we want something that we know well or feel that they will they are in this legal job and they're not going to lose it in a month down the road. Okay are you in other provinces with rent to- owns or just Manitoba right now we're start to look into Alberta we have a couple of malut.

33:56.30

Donna Cook

We're starting to look into Alberta we have a couple of applications there. We've had a few applications from Ontario as well. But mostly Manitoba and like I said we probably will go into that Edmonton area because their pricing is similar to ours.

34:00.75

wongga

We had a few applications from Ontario as well and mostly manitoppa and like I said we probably will go into that to marry because they're poisoning it similar to ours. Okay, very nice. Well I mean we're gonna be.

34:15.31

Donna Cook

I mean we're gonna be growing your talk page. We're making them show notes to audience if you have not any off elses your Don love to love to hear about it. Um, let's talk about lenders. Um, do lenders do run the well you do them.

34:16.80

wongga

Throwing your contact information in the show notes. So audience if you have any off market deals. Sure Donna would love to but love to hear about it. Um, let's talk about lenders though. Um do lenders view rent to owns any differently. They know anything about rental really that this is a rental poverty.

34:30.97

Donna Cook

They don't know anything about rent own. Really this is a rental property because we do have a more or a a lease in place. We don't know 100% that the person is going to buy it so it truly is a rental and.

34:35.90

wongga

Because we do have a more ground. Yeah a lease in place. We don't know 1% that the person is going to buy it. Okay truly is a rental and that's just the way they quald for the mortgage. The one advantage though is we do have a tenant right away.

34:48.30

Donna Cook

That's just the way they qualify for the mortgage. The one advantage though is we do have a tenant right away you know I know Banks don't like financing a vacant property and that's never the case we always have that tenant there. Okay, yeah, we're ready to go home then on me.

34:55.35

wongga

You know I know angs girl life finance vacant property and that's never the case we always have that tened there. Okay, yeah, they're ready to go and then on the exit strategy I guess um in 3 years it's just somebody who's trying to.

35:07.94

Donna Cook

Exit strategy I guess um in 3 years it's just some of you who trying hopes it doesn' really matter whether it's rent to own right? and it depends how we do it sometimes we do say it's a rent to own. But if we're finding that it's a little bit harder doing that right now.

35:14.60

wongga

Buy a house. It doesn't really matter whether it's rent to own or not right and it depends how we do it Sometimes we do say it's a rent to own. But if we're providinging that it's a little bit harder to elaborate now then we'll just do it at a regular purchase make sure the deposits and can account for.

35:26.72

Donna Cook

Then we'll just do it as ah, a regular purchase make sure the deposits in an account for three months and then and then they go and purchase it and and another way we get people coming to us actually is through maybe a realtor.

35:33.12

wongga

Months and then and then they go and purchase it okay and another way people coming to us actually is through maybe a realtor group has the 1 trying to qualify for a house that they've the realtors shown them and they will qualify. So.

35:45.65

Donna Cook

Has someone trying to qualify for a house that they've the realtors shown them and they don't qualify so a realtor can bring their clients to us same thing with the mortgage broker.

35:52.41

wongga

Ah, Realtor can bring them their clients to us same thing with a mortgage broker. They may have an client that doesn't quite qualify as though they sent them to us and then they can qualify them as ro okay well I mean it seems like you're concentrating on this strategy because it works for you.

35:57.64

Donna Cook

They may have a client that doesn't quite qualify and so they send them to us and then we can qualify them as a rent to own. Okay well I mean it like you're concentrating on this strategy because it works for you and you've done seems like almost everything across.

36:12.12

wongga

Um, you've done seems like almost everything across the spectrum in terms of asset classes and flips and burs and I think you mentioned vacant land as well. So yeah, that's ah, that's amazing I'd like to transition a little bit because um, it is a real estate podcast but I like to ask business questions if we have time.

36:15.44

Donna Cook

Turn it towards our asset clock. So this fliy mentioned they plan as well. So yeah, that's so that's amazing I'd like to show Ziki a little more because it is a realistic podcast but I would like to ask with this questions if we on time but you've been in the real estate. We've heard.

36:31.82

wongga

But you've been in the real estate industry for for quite a while. How have you seen it change in the past five years or even 10 years well I guess the markets gone up and down when we started flicking it. We couldn't get the house but passed it off and so and they were gone and.

36:34.22

Donna Cook

Why how have you to take for the past five years and years well I guess the market's gone up and down. You know we have when we started flipping. We couldn't get the house out fast enough and. And they were gone and then then we went through a little bit of a slower stage and so you just I think you can sell a house in any market. Just do it right? Buy it right? Do the right renovations. Don't price it too high and.

36:51.74

wongga

And we went through a little bit a slower stage and say just I think you can sell a house in any market. Just do it right? Buy it right? The recommendations don't price it too high and you can sell it if you can sell here pay time of the year for sure more houses.

37:05.17

Donna Cook

Um, you can sell it I think we can sell here at any time of the year for sure more houses sell in spring than winter. But I've sold houses on Christmas Eve and um, find that exactly but then of course this last couple years with these crazy interest rates which has never happened.

37:11.48

wongga

In spring that you winter but I sold houses on Christmas Eve but all supply and demand right exactly but then of course this last couple of years with crazy interest rates which is never happened in history. Um, you know you just have to give in and.

37:24.76

Donna Cook

In history. Um, you know you just have to pivot and do your research and keep going and all our rent to owns do cash flow. We aren't.

37:30.95

wongga

Do your research and keep going and all are meant to do cash flow if we aren't We never do negative Cash flow So that is I guess a bit of an an advantage over the regular rental property. You know we're coming into this and we're making.

37:37.51

Donna Cook

We never do negative Cash flow So that is I guess a bit of ah ah, an advantage over maybe a regular rental property. You know we're coming into this and we're making sure our costs are all covered in the rent and yeah I for the the market rents.

37:49.25

wongga

Are pots that are all covered in the rent right? Yeah, you're not necessarily. You know if the market brands take a dip for whatever reason you're choosing that and you're making sure that all the parties agree to it including that option fee and that they can afford it. So everything's very very stable right.

37:57.13

Donna Cook

Whatever reason you're choosing that and we sure that all the puies agree to it including that option fee and that they can afford it right? So everything's there there single right? I Love it. Um, okay so you grew up as was a real estate person watching your dad and.

38:08.28

wongga

Ah, love it. Um, okay so you grew up as a real estate person watching your dad I mean I normally ask what do you? You know? wish you would have known before you started doing real estate but you kind of had.

38:16.19

Donna Cook

Which I mean I normally ask you which she would have known before we started being real estate you kind of had bit of an advantage. There was there anything that you saw growing up that like I'm not going to do in a project I'm being real estate anything like that. Um.

38:23.62

wongga

Bit of an advantage there is there anything that you saw growing up that you're like I'm not going to do that if I become big in real estate anything like that. Um, well we managed those properties So that's why I had a property manager of life. Yeah I did really want.

38:32.73

Donna Cook

Well, he managed all his properties So that's why I've had a property manager I saw what that was like and I didn't really want to do that I have managed mine off and on and it's not something I particularly enjoy. But I guess I think everybody should do it just to.

38:41.90

wongga

That I have managed my knock in on and it's not something it to may enjoy. But I think everybody should do it at just to see what it's like and then they appreciate people like you that are property management company. They realize what and go through I don't know.

38:51.37

Donna Cook

See what it's like and then they appreciate people like you that are a property management company. They realize what you go through and I wish I bought houses sooner. You know when my kids were growing up I had a business and I didn't really get into real estate that much at that time. So.

39:00.50

wongga

A crisis theaterer I my kids are growing up I had a business so I didn't really get into real estate that much at that time you the legend written po twenty years ago yeah whatever well I had a quote that I put on Instagram a couple weeks ago and um.

39:08.87

Donna Cook

Ah, you know like everybody says we should have bought it twenty years ago or whatever but I cool so put on Instagram a couple weeks ago and hopefully I'm up with you. But I think it said best time to buy wheels do twenty years ago Second time second best time buys them right? right.

39:19.58

wongga

Hopefully I'm not butchering it. But I think it said the best time to buy real estate was twenty years ago the second time second best time to buy is now right? So it's never too late. Um, okay so let's talk about lifestyle a little bit. Um I know that you love traveling I obviously have said that I have the travel bug.

39:28.28

Donna Cook

Yeah, it's never too late. Okay so let's talk about life though bit I know that you love traveling on instead that I have a top bug you mentioned high in Costco Beca thought I overthre you say on every working event that you'd like to make a permanent move.

39:38.99

wongga

You've mentioned time in Costa Rica and I thought I overheard you say at a recent networking event that you'd like to make a permanent move outside like did I mishear that like what's what's your goals car I know not to live in Costa Rica I don't what to pay well I don't move outside the city.

39:47.70

Donna Cook

Do I miss here address. What's your goal well part time I'd love to live in Costa Rica I'm kind of done with winnipeg well I don't live in Winnipeg I live outside the city but I'm kind of done with winter here. So I was there I was away for six weeks Twenty five days was

39:58.65

wongga

Kind of done with with your ear so I was there I was awake for six weeks 25 nice costa ri cow okay never mind enjoying it but I worked there too but because my business style that it is I can absolutely and.

40:05.83

Donna Cook

Ah, in Costa Rica um never mind just enjoying it but I worked from there too so because my business is as it is I can work anywhere and I have boots on the ground here. So it doesn't need to be me.

40:16.54

wongga

The ground here. So it doesn't need to be me my son and I met there as well too and we traveled around and looked at different properties that we may look at buying and though that will be and then investment's as well. Though we're looking for something that's not a several units on it something we.

40:20.50

Donna Cook

Ah, my son and I met there as well too and we traveled around and looked at different properties that you know we may look at buying and so that will be an investment as well though we're looking for something that's got you know several units on it something we can build onto it and something we can all.

40:35.95

wongga

Dog to it as something we can all go down and pay ask What is our investors. Okay, so do you think that would be more of a snowbird type thing or do you think you would make a permanent move down there I don't know my family fear you right here and I'm Mont salaries here here. Yeah.

40:38.40

Donna Cook

Go down and stay and as well as our investors. Okay, so do you think I would be more of a snowber taking thing or you think it would make a permanent move I don't know because my family's here you know you always still want to be here and I love our summers here and so I guess I'd always be in Manitoba part time.

40:55.74

wongga

So I guess I know move out to aparttime if you could pick up the phone and talk to the 20 year old version of yourself. What would you tell them to make the next 10 years of their life successful. You didn't give me that question. They.

40:58.19

Donna Cook

Yeah, if you could pick up the phone and talk to the 20 year old driven yourself. What would you tell them to make the next 10 years of life successful. You didn't give me that question in advance quality.

41:14.49

wongga

I Got to throw you some curve balllls here I Guess mostly I think it would be make better plans. It's gonna just go in along like make those have goals would be really talked about goal setting that much then and.

41:17.16

Donna Cook

I Guess mostly I think it would be make better plans instead of just going along like actually make those goals Nobody really talked about goal setting that much then and and then get into real estate sooner.

41:31.75

wongga

And they get see there. Yeah, no absolutely I mean it's boat being. What do they say proactive not reactive rate any business needs that for sure.

41:35.23

Donna Cook

Yeah, absolutely I mean oh being what you say proactive? Yeah, right every any business needs that for sure. Okay, so we're at the end of you here. But and you know this one's as I ask you every guest but I do want to do.

41:45.61

wongga

Okay, so we're at the end of the the interview here. But um and you know this one's coming because I ask it every guest and I but I do want to hear what you have to say so this is the investing to win podcast. How do you define success and what does winning look like for you. Um, what a wedding wednesday.

41:54.36

Donna Cook

This is the investing today podcast. How do you Define success in what does winning look like for you. Um, while winning, let's say if we're talking about rent to own would be the win-win-win the tenant the vaster myself. But.

42:04.84

wongga

Talking about Riton would be the win-win with pennna thewester myself. But I also talked to my master. What are their goals about how do we align and so to me that's success and then of course our lifestyles your personal lifestyles have to align with that.

42:10.17

Donna Cook

Also talked to my investors. What are their goals. How do we align and so to me that's success and then of course our lifestyles. You know our personal lifestyles have to align with that as well. You know, Health and fitness and family and.

42:24.14

wongga

You know, Health and fitness and family that is the most important and longest we can arrange our business life around without and that's a win-win I couldn't agree more and that is a great time. A great place to stop.

42:29.50

Donna Cook

That is the most important and long as we can arrange our business life around that then that's a win-win I couldn't agree more and that is a great time. A great place to stop the Donna um on behalf of the and most community I would like to thank you for.

42:42.17

wongga

Donna um, on behalf of the investor community I would like to thank you for hanging out with me today and it very very insightful conversation and I learned tons and I know our audience did too. Well, thanks so much for having me and getting a strategy if there's not that many people know about it.

42:47.52

Donna Cook

And me up with today and as very very uncomfortable conversation and I learned some I know our audience too. Well thanks so much for having me and and getting the strategy out there because not that many people know about it. Absolutely, it's a lot of value and being a podcast through this is going to get a ton of downloads.

43:00.51

wongga

Absolutely no, it's a lot of value and again being a podcast I'm sure this is going to get a ton of downloads that would be great. Okay, thank you very much Kate take care.

43:06.87

Donna Cook

That would be great. Okay, thank you very much. Okay, back take care.