Three things you didn’t know about Residential Sale and Leaseback


Saskia Wijngaard

Mortgage brokers who are currently offering HELOC loans, reverse mortgages and other equity extraction loans ought to consider throwing their hat in the ring with residential sale leaseback, the option also known as Sell ‘n STAY This real estate product is 5 years old in the marketplace provides mortgage brokers access to a wider customer base than previously afforded to them in asset-based lending. Residential sale and leaseback remains a relatively unknown entity, there is a lack of knowledge and understanding surrounding the product that could potentially hinder mortgage brokers’ sale attempts or make homeowners hesitate. Which is why Sell ‘N STAY Inc. is now providing free training to all mortgage brokers. It may also provide brokers with a product to offer homeowners who would previously have had no other equity extraction option.

The Sell’n STAY program allows mortgage brokers to offer customers a solution to their financial woes based solely on the equity they have built up in their home without having to leave it. It fills in many of the gaps left by traditional equity equation products and focuses on the assets accrued by the customer over the years. It’s another program brokers can add to the relatively limited arsenal currently available for asset-based lending.

Here are three things you may not have known about Sell’n STAY:

1. It provides an additional option for a broader customer base.

Reverse mortgages come with age restrictions. Home equity line of credit (HELOC) loans come with credit restrictions and typically unattractive interest rates for those with less-than-perfect credit. Mortgage brokers who only offer these equity extraction types wind up turning down untold numbers of potential customers who walk through their door due to restrictions. For the potential customer, the fact that they have adequate equity build up in their home doesn’t even have the chance to come into play. Residential sale leaseback provides a third option for customers restricted from traditional equity extraction products, provided the home equity exists.

2. There are no age restrictions, but it isn’t always the better choice over a reverse mortgage.

Homeowners don’t have to be of retirement age to have equity built up in their home that they’d like to have access to. However, the popular reverse mortgage program for seniors doesn’t offer equity extraction to people who haven’t made it to retirement age yet. Younger homeowners needing to access their home equity should ask their brokers about the option that doesn’t have any need to discriminate based on age, opening it up to far more homeowners.

Sell’n STAY won’t be the right choice for some customers who would have qualified for a reverse mortgage. At the end of a reverse mortgage term, assuming the loan payments have all been made, the home is still the property of the homeowner — which isn’t the case with residential sale and leaseback. Customers who would like their home to stay in the family will likely not be good candidates for the new product. However, for customers to whom a stable place to live is the most important factor, this additional option can give brokers with a way to provide homeowners with that — and their equity, too.

3. It offers an option for low-credit customers.

It’s never ideal to have to turn a customer down, and it’s even worse when they have plenty of equity but have fallen on hard times. Often, the people who need access to their equity the most are people who are in trouble. When people get into financial trouble, their credit score often suffers, whether it’s from missed payments, high credit utilization ratio or just a general lack of revolving credit because they simply can’t afford anything extra.

Saying no to low-credit customers seeking a HELOC is hard, especially when they have perfectly adequate assets that they just can’t get to without leaving their home. Sell and stay does provide an option to these customers, but it’s not without its own strings attached. Debt challenged Sell ‘n Stay Clients may be required to provide a 6, 12 or 18 month voluntary rental payment out of the equity they get from the home sale — which may not be an option if the equity is needed to settle other outstanding debts — so brokers are still required to gather credit info similar to how they would with other loan types.

Of course, not every customer is willing to resort to selling their home, but with the lease conditions offered with sell and stay combined with fewer restrictions, it provides another equity release option that brokers would be wise to add to their arsenal. It comes with all the benefits of other equity extraction loans but removes many of the obstacles that can prevent potential customers approved. So long as they have substantial equity and a desire to stay in their home, this product should be an option for customers who don’t mind handing over the title.

How to exit the housing market without exiting your house

Garry Marr | March 11, 2016 | Last Updated: Mar 14 1:09 PM ET
More from Garry Marr | @DustyWallet

Let’s say you’re looking to get out of the housing market and pocket your wealth.

One option is obviously to sell, but then you have to either buy another place or rent. What if you could just lease back your own property?

It’s an unfamiliar concept in the residential housing market but a fairly common one in the commercial property sector. Most of the major banks, for example, sold off their property holdings long ago with the proviso that they could stay put for the length of the lease signed.

It’s called a sale and leaseback and now a group of Toronto realtors, who say they are specialists in dealing with seniors, are bringing the concept to the residential market. The group says they have already structured 15 deals with hopes of more to come.

“That’s kinda of the whole point of it, (not moving). We’re looking at seniors but others too,” said Chris Newell, who works with fellow realtors on a product called Sell ‘n Stay.

A large part of his business has been working with seniors and Newell is behind a new designation — not recognized by any government or agency — called the accredited senior agent. Agents can become a Master ASA after taking a two-day course, offered by Newell, and four additional courses, provided they have five years of experience of dealing with buying and selling real estate to seniors.

Seniors are a prime focus of the sale and leaseback group because they often need more money for retirement but don’t want to leave their homes. Those same seniors have been driving the reverse mortgage market, which also allows people to stay put in their homes but involves borrowing against future equity.

Reverse-mortgage advocates will tell you they’ve got the better product because it protects homeowners, whether prices are rising or falling in the market. A reverse mortgage lets you draw money out of your house with a promise to live in it for forever, with money owed on what amounts to a loan repaid out of the equity when the house is eventually sold.

“If there is no money left (from the equity), it’s our problem not yours,” said Yvonne Ziomecki, senior vice-president of marketing and sales at HomEquity, the leading provider of reverse mortgages in Canada. Under her program, you can extract up to 55 per cent of the value of your home, albeit at a hefty rate by today’s standards of 4.99 per cent. Plus, you have to pay upkeep and property taxes on your home.

The key advantage of selling your home and leasing it back might be that it allows you to exit the housing market without moving, leaving you unexposed to a crash. In Metro Vancouver and the city of Toronto, where the average price of a detached home is $1.8 million and $1.2 million, respectively, that’s no small consideration.

“What we are trying to do is a matchmaking between the investor and the homeowner,” said Newell, who lines up investors through real estate investment clubs and contacts. His longest leaseback has been 10 years.

Investors are generally looking for stable cash flow and also a chance at capital appreciation. Sellers want to make sure they have a rock solid lease that will allow them to stay in their homes for the prescribed time, though those leases often have an escape clause should the renter become ill.

The realtors hooking up these deals are getting their typical commission, about five per cent in Ontario, which is split evenly between agents acting for buyers and sellers.

Gerald Miller, a real estate and condominium lawyer at Gardiner Miller Arnold LLP, says he hasn’t seen deals like this, but says a key consideration will be the language in the lease.

“You can contractually do anything as long as it’s not illegal,” said Miller, adding that, in Ontario, the investors would not be able to evict a tenant who had a long-term lease, even if they wanted to move into the property themselves.


But, he cautioned that someone renting could find themselves out of house and home if the investor buying the property defaulted on a mortgage. Although Miller hasn’t seen these deals in residential property, he says that in commercial property mortgages any tenant “postpones their interest in the lease” to any lender. A tenancy with rights above any mortgage would make it harder to get financing.

Another friction point might be the actual negotiated rent. Based on achieving a four per cent return on a $1 million home, an investor would be looking to capture $50,000 in annual rent once operating costs like taxes are thrown in. A monthly rent of close to $4,200 is probably more than some people want to pay — even if that is the going rate to let a home.

“You’re not getting that type of money in rent,” said David Batori, the broker of record with Toronto-based Re/Max Hallmark Batori Group Inc. “You’d need $6,500-a-month rent for a $1.5 million house (in the city). It only costs $4,000 to rent that house. Rents just haven’t caught up with prices. The problem is, once you got up the price spectrum, people just say they’ll buy a place.”

Craig Alexander, vice-president of economic analysis at the C.D. Howe Institute, says the price gap illustrates how out-of-whack housing market prices have become in comparison to rental markets.

“Given how high home prices are relative to rental costs, the buyer won’t accept such a low return if they only get the equivalent rental rate. This illustrates how unbalanced the real estate market has become in the highest priced markets — with Vancouver and Toronto being the obvious examples,” said Alexander.

Author Don Campbell, founder of the Real Estate Investment Network, said sales-and-leasebacks hasn’t become a major strategy yet but acknowledges that some homeowners want a way to get their capital out of their homes.

“We are seeing different ways to do that,” he said, adding that there is a lot of inter-generational wealth transfers. “A baby boomer will renovate a house, create a secondary suite and sign a lease. They sell the home to the kids, probably lower than market price, and then rent from their kids (so they can carry it.)”

He says that in Vancouver’s pricey real estate market, laneway houses have become more common and are often used for seniors downsizing and looking to live on their property.

The bottom line, says Benjamin Tal, deputy chief economist at CIBC World Markets, is that people want to figure out a way to get the wealth out of their house.

“I think there is a market for anything that allows you to make some money without forcing you to move out of your house,” Tal said.

Illustrations by Chloe Cushman/National Post

Financial Post


How many years did you stick with the house, paying mortgage, maintenance, taxes and so forth. Now with Sell N Stay …combined with certified financial income planning, we can together ensure your Money is going to stick by you. This will become Sticky Money …to assure your Income for Life!

The Benefits of Owning Multiple Properties

HomeExpert Advice

by CRE07 Apr 2015

By Lee Strauss

Investing in cash-flowing real estate is obviously a benefit for an investor, especially if that investor holds onto the property for a long period of time. Every cash-flowing property has three income streams: cash flow, mortgage pay down, and the appreciation of the property.

Cash flow: The rent collected, minus the expenses. A modest cash flow on a single-family home in any of the large Canadian markets can vary, but let’s use $250 a month as our example. Multiply that monthly cash flow of $250 across 10 years of owning the property: that’s $30,000!

Mortgage pay down: All the while you’re holding a mortgage on a property, it’s slowly getting paid down by your tenant. When you sell the property the difference from the first day you got the mortgage until the day you sold the property is yours in the form of equity.

As an example, let’s use a $300,000 purchase price with a 20 per cent down payment, a three per cent interest rate, a 25-year amortization and a mortgage of $240,000. In 10 years, the mortgage amount would be $206,008, a difference of $33,992.

Appreciation of the property: The third stream of income and usually the largest increase to an investor’s wealth. Historically, real estate appreciates over time. Let’s say you buy a property for $300,000 with a modest appreciation of four per cent per year – in 10 years the property is worth $426,990. Congratulations, you have just earned $126,990 in equity.

When all three of these income streams are added together, the investor would have a financial gain of $190,982. Not bad for a 20 per cent down payment of $60,000. Actually, when you calculate the return on investment of the actual money invested (which is only the down payment of $60,000), that is a 318 per cent, or 31.8 per cent per year, return on your money.

I honestly don’t know where else you could find a return that good. Please take into consideration that this is just an example and, of course, there are always unforeseen variables that can cause your returns to fluctuate, such as: vacancies, repairs, interest rate fluctuations, etc. Also, appreciation rates can fluctuate, which is why it is imperative to buy your properties in areas with strong economic fundamentals.

Having many properties provides the investor with many benefits. So ask yourself this question: What if I owned multiple cash-flowing properties? After reading this article and going over the examples provided, you can answer this question. If an investor can benefit substantially from holding one property for many years, multiply these gains – to put it simply, the more properties held, the better off the investor will be.

Now for the downside. As any seasoned investor knows, issues with your properties are inescapable, and regardless of what they are, they usually do come at a cost. Just as you would multiply the returns on your properties, you may also have to multiply your problems. The question you have to ask yourself is: How many years can you stick it out?

Lee Strauss is an investor based in Kitchener, Ont.
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Press Release – Sell ‘N STAY Inc.

‘Sell ‘n STAY®’ just incorporated across Canada creating a partnership between Theresa Baird, Broker and Saskia Wijngaard, Sales Representative, from Keller Williams Realty Solutions

‘Sell ‘n STAY®’ Just incorporated across Canada creating a partnership between Theresa Baird, Broker and Saskia Wijngaard, Sales Representative, from Keller Williams Realty Solutions in order to serve Canadians everywhere.

‘Sell ‘n STAY®’ is an alternative to reverse mortgages providing 100% of the equity with no property tax, no maintenance. The Senior’s heirs loves ‘Sell ‘n STAY®’  because they don’t pay Probate on a home that needs to be sold. However, this program is not just for seniors anymore, recently 40’s and 50 year old are listing their home as a hedge against future uncertainty. This program delivers 21-35% ROI for investors, in a simple and safe way.

‘‘Sell ‘n STAY®’ s concept is so easy. Here is how it works: ‘Sell ‘n STAY®’  has a roster of Investors looking to put their money into the Real Estate market. They have no desire to live in the property, their biggest concern is getting a good tenant. But to think of it, who is better to rent from the investor than the person who has previously loved and cared for the home? With the ‘Sell ‘N Stay’ program, people can sell their home to an investor, take the money and reinvest it with their trusted financial advisor! People can pay their rent using the interest from the equity!! It’s a simple and brilliant concept isn’t it?

Saskia Wijngaard is the brilliant mind who took the idea and ran with it is a REALTOR with Keller Williams Realty Solutions, creating a solution born of the Rotary Club’s 4 way test.  Looking for a partnership to take ‘Sell ‘n STAY™’ to the next level she partnered with Theresa Baird. Theresa immediately loved a concept which protected seniors and yet benefitted investors and utilized her formidable resources to promote the concept.   Theresa Baird, Broker, as a top producer, a recognized trusted name in Mississauga, loved the concept and utilized her formidable resource to promote the concept.  “This is an alternative to the Reverse Mortgage beneficial to all parties concerned” she said.

The program has thought of all the “What ifs” and made the appropriate provisions. Someone takes a spill and needs to go into long term care? No problem. There is a clause that speaks to the various case scenarios that can occur. It is a program that works for both the Investor and the Seller. It is a win/win scenario.

About ‘Sell ‘n STAY™’

‘Sell ‘n STAY™’ which is a residential sale and leaseback program available in Ontario is now able to  Specially trained, licensed and insured real estate agents deliver creative solutions to owners of a home, condo, and townhouse.  Wherever people are located in Ontario, mostly in the Greater Toronto Hamilton Area they are able to sell your home and lease it back to investors. For more information, please go to


To learn more, please contact:

Saskia Wijngaard/ Theresa Baird

103 Lakeshore Rd E.

Tel.: 905-271-5125

Expanding Two-Fold

For immediate release:

Sell ‘N Stay INC. now provides services to everyone that loves where they live, irrespective of their age.

Sell ‘n STAY, federally incorporated on August 1st, in order to give Canadians an alternative to the Reverse Mortgage, Downsizing, or Home Equity Lines of Credit Is pleased to announce that it has broaden its reach in two ways.  Firstly, by helping all people, irrespective of age, who love where they live, and want to lock in their gains. Secondly, by training more real estate sales representatives as associate members of the program.

Originally created to help seniors by providing 100% of their equity and eliminating their property tax and maintenance costs. Now Sell ‘n STAY is helping all people, irrespective of age, who love where they live, and want to lock in their gains.  With the Sell ‘n STAY’s program, people can sell their home to an investor, and reinvest the funds with their trusted financial advisor plus experience a unique opportunity to stay in their home. Younger clients of this program are choosing to invest their equity in a new business, or to become real estate investors themselves, or as a hedge against the market softening.

Secondly, Sell ‘n STAY has now expanded their reach by training more real estate sales representatives as Associate Members of this program to better serve Ontarians.  Therefore, this program is now available in Ottawa, Hamilton, Burlington, Oakville, Mississauga, Toronto, and from Pickerington to Bowmanville. This affords the home owner the resources to enjoy their freedom while empowering them to provide financial support that is predictable, and flexible. “For those who are looking for a trusted alternative to the Reverse Mortgage, Downsizing, or a Home Equity Lines of Credit in Ontario, Sell ‘n STAY is the only program of this type.  We provide a honest assessment and a plan for accomplishing our clients goals which allows them to transition into a new lifestyle in an orderly fashion.” said Saskia Wijngaard.

“Our transparent and fantastic solution is transforming the industry positively. We’re empowering home owners to achieve their dreams and reach their financial goals.” Theresa Baird said.

About Sell ‘N Stay INC.

‘Sell n Stay’ is a residential sale and leaseback program available in Ontario.  Specially trained, licensed and insured real estate agents deliver creative solutions to owners of a home, condo, and townhouse.  Wherever people are located in Ontario, mostly in the Greater Toronto Hamilton Area they are able to sell their homes and lease it back to investors. For more information, please go to

Media Contact:

To learn more, please contact:

Saskia Wijngaard and Theresa Baird