Month: February 2021

Real estate investing has so much upside today that if you follow the “Herd Investors” you’ll be furiously competing with all of those investors for every distressed property that comes on the market. So, instead…

Don’t be a “Herd Investor.”

Standing Out in the Crowd is How to Find a Seller Now

Investing with sandwich lease options means you don’t work with desperate sellers with underwater mortgages. You don’t work with damaged houses that retail buyers don’t want. You don’t work with sellers that are ‘break-even’ on their mortgage and need to squeeze every nickel out of the deal.

Every other investor is looking for either rental houses as an owner/landlord or rehab properties that can be flipped. You are not looking to become a traditional landlord nor are you interested in a lot of rehab hassles. You want to control houses through sandwich lease options without owning them.

How to Find a Seller Now is with Sandwich Lease Options, which gives you the investing advantage… especially in this competitive market.

Your competitive advantage begins when you find someone who has equity in his or her well-maintained home. A home that anyone would be proud to own. A home that you can easily sell as a rent-to-to-own for top dollar with tenant-buyers begging you to sell to them. There is nothing like a sandwich lease option to deliver top of the market houses to highly qualified tenant-buyers excited to pay top dollar.

If Not NOW, When Will You Stand Out From the Crowd?

How profitable are these Stand Out Deals? You already know about the three paydays from sandwich leases – 1. Purchase Option Fee, 2. Monthly Rent Spread, 3. Big Payday when the purchase closes. Now, think about how to maximize your profit even more. When the seller has more equity, you are more likely to receive option credits each month. Option credits give you equity each month from the rental payment you are making. If you purchase the home for $200,000 and each month you are paying $1,000 in rental payments to the seller, ask the seller for $1,000 (or $500) a month credit towards the purchase price. That gives you equity in the house to Increase Payday #3 even more!

How to find a seller now begins by looking for sellers with plenty of equity in the house. In the U.S., more than 30% of homeowners own their homes free and clear. But sellers don’t have to own it free and clear. Home prices have been skyrocketing for several years and even people that bought just a few years ago already have tens of thousands of dollars in equity.

When sellers have equity, they have choices in how they can sell the house.

Sandwich Lease Options Put More Money in the Seller’s Pocket

Sandwich lease options are the no/low cost way for you to control real estate. What you need to do is be able to communicate with people. Using prewritten scripts is an excellent way to start talking to sellers now. They will talk to you when you begin by telling them how they can make more money on the sale of their house.

Sandwich lease options have some seller benefits in common with seller financing but with much less risk for the seller. What is in common are a monthly income stream, a high sales price, and delaying any capital gain tax for a year or longer. The reason it is less risky is that with straight seller financing, the seller immediately signs over the deed to the property before being paid in full. With sandwich lease options, the seller first collects profitable monthly rents and only signs over the deed when the house is fully paid for at closing.

More money in the seller’s pocket for much less risk!

You will find sellers excited to sell highly desirable houses using a sandwich lease option. You will stand head-and-shoulders above other investors that don’t offer what you offer.

Finding a Seller Can Also Mean “Good Debt Relief”

Almost no other investors look for traditional “retail” houses. But you will be looking for top-quality houses with the sandwich lease option strategy AND you can also eat part of the other investors’ lunch. I wouldn’t go after deeply distressed properties needing a ton of repairs. But there are plenty of other situations where sellers need “Good Debt Relief.”

These are situations where a seller has a perfectly good house but has financial problems that a sandwich lease option can solve. Solving their problem is how you put together a Win-Win-Win for the seller, for you, and for the tenant-buyer. There can be several root causes for why a seller needs debt relief. It could be divorce, job loss, health problems, or something else. All of these can bring on two common situations that cause the seller to need debt relief. The seller needs to leave the house or the house is already vacant. Both mean there is an empty house but no income to pay the mortgage.

Being able to generate income for the seller in a week or less is what I call “Good Debt Relief.”

Good Debt Relief is very simple. The seller has an already vacant or soon to be vacant house that they have to make mortgage payments on. The house is not producing an income. The debt payment is a big rock they have to carry without relief. When you offer a sandwich lease option, you offer an income stream to pay that debt. That income stream is Good Debt Relief.

How to find a seller now means that you need to know the nuts and bolts of the sandwich lease option process. Without knowing the nuts and bolts, you’ll probably come to the wrong conclusion that there are almost no sellers out there who want or can use your services. You’ll be stuck competing with the herd of other investors who are sinking huge amounts of money into distressed properties, that are almost impossible to find, and then still need a ton of work before you ever see a nickel returned on your investment.

The truth is that there are a lot more sellers who will benefit from a sandwich lease option than you might first realize. Every one of the 30% of homeowners that own free-and-clear can earn more with a sandwich lease option. So can any seller that has some equity but doesn’t own the house free-and-clear. Plus the ones that need “Good Debt Relief” regardless if they own it outright or only have some equity. Add all of these together and you’ll find that a very good percentage of homeowners are candidates for your sandwich lease options.

Deals are everywhere. You just need to know how to find them. The Big Key is learning how to fine-tune a sandwich lease option to each situation. Learning when to walk away is another key.

Here is what you need to know about every profitable deal that is out there!

1. Cooperative Lease Options.
2. Investing In Real Estate with Lease Options.
3. Advanced strategies for Buying and Selling with Lease Options.
4. You’re Wealth Building Arsenal.
5. Add Personalized Coaching.
6. Expand to Get the Deed “Subject To.”
7. Round it all out by Working with Realtors.

By Wendy Patton

For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.

If you found this information useful, please visit again soon at wendypatton.com.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

What did you think of this article? Please leave a comment below.

My favorite success story for unlocking the secrets to sandwich lease options is a 14-year-old boy who discovered success in less than one day! His example clearly shows how opening your mind to using less conventional methods sets you above the rest of the crowd. His amazing accomplishment took no more than the very basics – making a few telephone calls until he got a “YES, I’m interested in what a sandwich lease option can do for me.”

If a 14-year old boy can unlock the secrets to sandwich lease options, so can you!

Sandwich Lease Options Using Low- And No – Money Down Techniques

Here is what the young man did using the basics of sandwich lease options. John (the 14-year-old) attended one of my seminars a few years ago with his father. The day after the seminar, John started making calls and following the proven script that has worked for many people. Quickly, he had a “Yes, I’m interested.”

Because he was only 14, he couldn’t actually enter into a sandwich lease option contract. What he did is sell his lead to another investor in the local investment group for $500. All for less than 2 hours of his time. That is the fastest and easiest “No Money Down” deal that I’ve heard of.

Anyone can succeed with sandwich lease options!

When John sold the contract to another investor, it was a classic example of a Cooperative Lease Option (although John didn’t know it at the time).

How to Make an Extra $5,000 this Month with a Cooperative Lease Option

As you already learned from John, a cooperative lease option is a great way to get started with lease options. It won’t earn you $25,000 or more the way a full sandwich lease option will, but it puts fast cash in your pocket until you do put a sandwich lease option in place. For many investors, this is the first step to unlocking all of the lease option secrets.

The basic secret is taking the meat out of the sandwich. In my version, the meat is the purchase option fee. This is the money that the buyer will put down for the right to purchase the house. Except, you don’t have to find the buyer and you don’t have to manage the deal from now until the buyer completes the purchase. All you do for that quick $5,000 is find the seller and flip the sandwich lease option to another investor. Just as John did when he immediately sold his lead to another investor.

The big difference between what John did and what you’ll do with a cooperative lease option is that John only sold the lead to a seller for $500. To earn the full $5,000, you need to put the seller under contract and then sell the sandwich lease option contract to another investor. You are the buyer and you are “assigning” your contract to a buyer for a fee from them to buy your contract. You can be in and out of the deal in a week or less.

Cooperative Lease Options teach you the front end of the full sandwich lease option process for the least amount of work and risk.

Big Money by Staying in the Sandwich Lease Option

As soon as you complete a cooperative lease option, you’re ready to move on to the big money that comes from staying in the deal from beginning to end. What makes sandwich lease options so attractive is that you can usually offer the seller the full retail price for the house. That means you are completely competitive with every buyer in the local real estate market. You are not limited to looking for the rare deep discount property that occasionally comes on the market and every investor in town is looking for.

Offering full price means you are considering every cute white-picket-fence with a yard on the market. These are the same houses that every rent-to-own buyer wants. When you offer these buyers the ability to rent-to-own, they are eager to pay top dollar for their future home.

In a market that is appreciating in value every month, there is plenty of profit to be made with a sandwich lease option scheduled to be completed 18 months or 2 years down the road. But it gets much better because you collect the first of your three paydays as soon as the buyer signs the option agreement. Then you collect many more paydays every month in the form of the rent spread between what you pay the seller and collect from the tenant-buyer. And then your biggest payday comes when the tenant-buyer completes the purchase in 18 months or 2 years (after you’ve been collecting monthly rent checks all along).

Sandwich lease options are all about the terms of the deal. Terms include the price, amount down, length of time to pay, monthly payment, monthly credits, and other negotiated items with the seller. It’s not very much about the price that you pay the seller to get into a sandwich lease option.

It’s the terms that make it a WIN-WIN-WIN for the seller, you, and the tenant-buyer.

When you use sandwich lease options to invest in white-picket-fence homes, you can greatly expand your ability to find sellers looking for your services by working with Realtors^®.

Step Up Your Game By Working With Realtors^®

Working with Realtors^® is about helping Realtors^® and helping yourself at the same time. Of course, you’re also helping the sellers and buyers. Working with Realtors^® is now a 4-way WIN-WIN-WIN-WIN, which is even better than a 3-way WIN.

The big secret is that you are not asking Realtors^® to change their best potential sale into a sandwich lease option. Instead, you are offering them a way to sell their most difficult listings in a way that everyone wins.

The place you begin is by understanding that Realtors^® aren’t trained in this unique selling technique. They are trained in the traditional ‘Retail Market.’ Your action is helping Realtors^® understand lease options. You do this by using several methods. First, you send a letter to a listing agent explaining the concept. Second, you offer to show a presentation going into detail about how your services will help both the Realtor^® and his/her clients with a house that isn’t flying off the market. Third, you continuously remind Realtors^® that your services are available when they do come across those difficult houses.

Your best opportunity to work with a Realtor^® comes the moment a seller says to them, “If my home doesn’t sell soon I might have to RENT it!”

Subject to Deals Complete Your Toolbox

“Subject-To” real estate investing is yet another way of acquiring ownership of properties with little or NO money down! Sometimes you may even be able to receive money when you buy, and have the Seller thank you in the process!

As full disclosure, these properties can be more difficult to find because these are in the category of “distressed properties” – meaning the seller is desperately looking for a solution to their problem. Although these don’t come along too often, you want “Subject To” in your toolbox when the situation makes it the best answer for helping a seller out of a bad situation.

What’s involved is a transfer of ownership at closing, but the mortgage stays in place. You buy the property “Subject-To” the existing financing. The loan stays in the seller’s name but you have full ownership of the property.

When you have full ownership, you can do whatever you want with the property. You can lease it, assign it, lease option it, or sell it outright.

“Subject-To” typically works best when the seller has gotten behind on the payments and has no way of getting current again. They just need out of the property to keep it from going to foreclosure and ruining their credit rating. There are many reasons this happens, including illness, divorce, any kind of “bad debt,” loss of a job, or being financially strapped.

Just like all of the methods that have been discussed, under the right circumstances, you are not a villain trying to cheat people down on their luck. You’re really a knight in shining armor who is offering the only hope that they have of getting out of a bad situation.

Unlocking all of the secrets to sandwich lease options comes together in the WEALTH BUILDING ARSENAL!

Now is your opportunity to decide how you want to get started and how much you want to start earning! You can begin with a Cooperative Lease Option or you can jump all the way in with the Wealth Building Arsenal or anything in between. What’s important is that you GET STARTED TODAY!

1. Cooperative Lease Options.
2. Investing In Real Estate with Lease Options.
3. Advanced strategies for Buying and Selling with Lease Options.
4. You’re Wealth Building Arsenal.
5. Add Personalized Coaching.
6. Expand to Get the Deed “Subject To.”
7. Round it all out by Working with Realtors.

By Wendy Patton

For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.

If you found this information useful, please visit again soon at wendypatton.com.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

What did you think of this article? Please leave a comment below.

As a professional lease option investor, you want to avoid the frustration that can come from not having seasoned funds and paper trails. Sandwich lease options have funds coming from multiple sources. For the most part, seasoned funds and paper trails will not create issues between you and the seller. However, the tenant-buyer needs a mortgage to complete the purchase. This where you want to be particularly diligent to document seasoned funds and paper trails. Once again, I never hold anything back about sandwich lease option financing…

Money Can’t Appear Out of Thin Air

Lenders Require Seasoned Funds and Paper Trails

For the past several years, lenders have imposed probably the most stringent loan approval requirements ever. These include credit ratings, debt-to-income ratios, proof of income, and other factors. One of the other factors is proof of where the funds came from. This is known as seasoned funds and paper trails.

Seasoned funds are basically funds that have been in your bank account for at least 60 days (different lenders may have other requirements). It’s not required but it makes documentation easier when the buyer opens a bank account specifically for the purchase transaction. The down payment and closing costs are what the lender is mostly interested in having documented. It’s as easy as the buyer collecting the funds from all of their sources and depositing these into a bank account at least 60 days before applying for a loan.

Seasoned funds and paper trails let the loan application continue smoothly through the approval process.

Typically, lenders will check the buyer’s bank account for the past two months before approving the loan. As long as the money has been in the account for at least 60 days, the lender assumes the buyer has full control of the money and it came from a legitimate source.

What the lender doesn’t want to see is funds unexpectedly appearing a few days or weeks before closing. This makes lenders think the money might be another loan that must be repaid. This can mean recalculating the debt-to-income ratio and even doing a fresh credit check (a new loan shows up on a credit report within 60 days). Loans can be from any source including family and friends that expect to be repaid.

In addition to the debt-to-income ratio and credit report, lenders want to verify that the buyer has “skin in the game” (the buyer’s own money) going towards the down payment and closing costs. They also want to be sure that the buyer is a good money manager.

Paper trails are a little different from seasoned funds.

Helping Buyers Create a Paper Trail

The money to purchase a home can come from many different places and buyers are known to be creative. Maybe it comes from the sale of a car or a small inheritance or someone just gave the buyer money to help buy a home. Any of that is fine and legitimate – as long as it can be proved.

Like seasoned funds, lenders primarily rely on recent copies of bank statements to show where the money came from. Money that can’t be traced is sometimes called “mattress money.” This is money that appears unexpectedly and the buyer might claim it was being saved at home in a vault or under the mattress. Without a paper trail, this becomes a problem with lenders. If it’s mattress money, the buyers need to deposit it in the bank account long enough for it to become seasoned. However, if the funds came from selling a car last week (or something similar), the homebuyer will need a paper trail in the form of a bill of sale and a corresponding bank deposit. If the funds are a gift from a family member or qualified donor, a paper trail will be required (notice the word “qualified”). A notarized letter stating the money does not have to be repaid can be enough but check with the lender for specific requirements.

With sandwich lease options, applying the option fee typically becomes a significant portion of the down payment. The forms and contracts that come with the Sandwich Lease Options Course make sure there will be a legitimate paper trail. Using a third-party escrow account for the lease option fee is a good way to create seasoned funds and paper trails. But the option fee doesn’t sit in the escrow account waiting for closing. As soon as all of the paperwork is signed, the money is released from escrow and distributed. This creates both seasoned funds and paper trails that can be provided to the lender. The amount the tenant-buyer put down for their option is shown on the closing statement as a line item (usually as an earnest money deposit).

You also need to understand any seasoning requirements for the house title.

Acceptable Sources for Less Seasoned Funds and Paper Trails

For the most part, all funds that have been in the account and available for 60 to 90 days will be assumed to be from a legitimate source and the buyer’s money. However, many people do have acceptable funds that appear inside the 60 to 90-day window that don’t need to be seasoned. These can include:

Regular payroll deductions going into a savings account. The last few deposits don’t need seasoning when the lender can see a long pattern of regular deposits.

Retirement funds (401k) when it’s shown that these came from an account in the buyer’s name. Often buyers don’t season these funds because IRS rules allow first-time buyers to use these funds penalty-free when the funds are used to purchase a home within 120 days of making the withdrawal.

Gifted funds with a proper paper trail. It’s not the homebuyer’s paper trail that the lender wants to see. It’s the paper trail for the account the gifted funds came from. The lender wants to be sure that the gifter didn’t take out a loan on the homebuyer’s behalf and that the gift needs to be repaid. The lender wants to see the funds were seasoned in the gifter’s account.

You may not like it but the lender is going to dig deep into the buyer’s finances. Your best approach is providing clearly seasoned funds and paper trails from the beginning. Not being straightforward causes delays while the lender looks even deeper into the sources for the down payment and closing funds.

Seasoned funds and paper trails mostly involve funding the down payment and closing costs. In more complex deals it includes reserves and other contingency funds.

Sandwich lease option investing is very adaptable. Here, you’ll discover all of the proven ways to earn a handsome profit for little or no investment on your part:

1. Investing In Real Estate with Lease Options.
2. Advanced strategies for Buying and Selling with Lease Options.
3. Your Wealth Building Arsenal.
4. Add Personalized Coaching.
5. Cooperative Lease Options.
6. Expand to Get the Deed “Subject To.”
7. Round it all out by Working with Realtors.

Let’s get you started making money today!

Wendy Patton

For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.

If you found this information useful, please visit again soon at wendypatton.com.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

What did you think of this article? Please leave a comment below.