Canada and Montreal people! Anyone do a lease to own?

Question

Hi All,

We just purchased a property to flip a week ago on an open conventional 1 year mortgage.

But I've already found a potential buyer on a lease to own strategy.

My issue is that means my initial strategy to flip and run with the profit doesn't work.

The L2O will lock me in though, wont it?

I was thinking of maybe doing a re-fi once the renos are done, since the buyer is willing to live in it during reno's.

Thoughts?

John

John Lombardo · Answer

Thanks @Guillaume D., that's helpful.

What about refinancing it once the Lease to Own at a future value is set in place?

The property is more or less "sold" at that point, so would the banks be more inclined to refinance?

Guillaume D. · Answer

Typically, banks cannot and will not refinance on a value higher than your purchase price within 12 months of the purchase. That's a standard rule for most banks.

Canada and Montreal people! Anyone do a lease to own?

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