Become a Real Estate Investor With NO Money and NO Credit!

This is the quickest and most attractive way to get your foot in the real estate door without having the financial resources to do so. Decades ago, when I got started, I had no money or assets, but I did have credit cards (which I do NOT recommend using for real estate investing). I was $20,000 in debt with student loans.

Sandwich lease options grew out of my strong motivation to achieve FREEDOM and make my own CHOICES!

The True Meaning of Options

Having choices means having options! The single most important thing you need to do now is Take Action with a strategy that is all upside without a downside. Sandwich lease options give you the choice to choose the upside and avoid the downside. I can’t directly help you with any student debt that you might have but I can show you the way to make big money without taking on more debt even if you don’t have any money today.

No money ventured means no money lost. Fear of taking action is your worst enemy. I learned early how to get others to pay for my real estate investments.

When I started investing, I didn’t know about sandwich lease options. I thought using credit cards was something like a zero-down deal and very creative. Now I know much better. Since then, I have tweaked and retweaked my own tools and techniques as well as added tidbits from all my deals and those of my students. Today, I’ve completed hundreds and hundreds of lease option contracts.

When you put together an upside sandwich lease option, you’ll see a payday in as little as a week and certainly within a month!

No Money and Low Risk is Why Sandwich Lease Options Appeal to Investors

There are times and tools for working with sellers that are in financial trouble. But whenever there is financial trouble there is greater risk of something going wrong with the deal. Both beginning and astute investors do much better with sandwich lease options that are LOW RISK and NO MONEY DOWN!

Finding a Seller in a Tight Market does NOT mean a seller is in Financial Trouble.

Very few investors find motivated sellers who are not in financial trouble because most investors don’t know how to put together the kind of deals that appeal to well-qualified sellers. These sellers don’t know what kind of deal will appeal to them until it is laid out for them. Very few qualified-sellers have heard about sandwich lease options – and almost none understand the seller-benefits they will gain. This is about creative and flexible financing options at a time when financing is the biggest hurdle facing sellers that want top dollar for their property.

Finding motivated sellers not in financial trouble is a great investing strategy because there is far less competition, and this is the strategy requiring little or no cash from the investor.

Why Sandwich Lease Options Appeal to Sellers NOT in Financial Trouble

Many of the sellers that are attracted to sandwich lease options have more than one property. Having multiple assets is part of financial security. Sellers with multiple properties are seldom in serious financial trouble. These sellers may not be in financial trouble but neither do they want to be paying on two mortgages. They don’t want to deal with inherited properties. They don’t want to deal with two properties that come with a second marriage. They don’t want to deal with out-of-state properties. They don’t want to deal with the smaller house they just moved out of when moving into their big house. They don’t want to deal with a property in another city when they just started a new job in a new city.

People with multiple properties are sellers that have the type of positive financial problems that you want to deal with as a sandwich lease option investor!

Many of today’s retiring baby boomers are looking for their own investment income streams. Sandwich lease options, Subject to deals, Owner financing, and other flexible strategies are what appeal to them – and what you should be offering to them. Each and every day, 10,000 baby boomers retire and need a new income stream. As an investor, you appeal to these sellers that are not in financial trouble when you can explain to them how to get the most out of their properties.

By finding motivated sellers that are not in financial trouble, you can use advanced investment strategies such as sandwich lease options and subject to existing financing. Please learn exactly how to put these No Cost and No Credit strategies in place by reading the Wealth Building Arsenal.

And… For the No Money, No Credit Investor Just Getting Started!

Let’s talk Cooperative Lease Options. Starting with cooperative lease options begins a natural progression to sandwich lease options and other investing strategies as you gain confidence and experience.

Cooperative lease options are the ultimate in No Money, No Credit, real estate investing. All you need to get started is the knowledge of how this works and the forms to put the deal together. In a nutshell, along with no money and credit, these take very little of your time. You get in and out of these deals quickly by connecting the seller with the buyer and then getting out of the deal.

Even if you don’t know anything about lease options today, you can have your first cooperative lease or sandwich lease payday in your bank in 29 days or less. It works as a full-time job, a part-time job, a retirement hobby, and can lead to early retirement at age 35, 40, or sooner.

If you’re watching today’s real estate market at all, you know there are many, many buyers ready to complete a deal. It’s sellers that you need, and we’ve already covered the types of sellers that you want to find. The only thing remaining is that the numbers have to work or no deal. And a little marketing know-how to get started connecting sellers and buyers. Cooperative lease options have nothing to do with your money or your credit. It is all about your know-how for putting the deals together. You bring the seller and buyer together, explain the process, and help them fill out the forms and contracts that come with the course. In exchange for your know-how, you collect the lease option fee. The lease option fee on a $250,000 home is expected to be about $15,000 (6%). You collect your fee and you’re out of the deal!

Cooperative Lease Options Have Almost NO Barriers to Getting Started.

Lease options are NOT about licenses, down payments, credit scores, or borrowing money. Lease options are about TAKING ACTION.

  1. Investing In Real Estate with Lease Options.
  2. Advanced strategies for Buying and Selling with Lease Options.
  3. You’re Wealth Building Arsenal.
  4. Cooperative Lease Options.
  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.

The Sometimes-Forgotten Strategy of Subject to Existing Financing

Readers are always looking for the most profitable ways to acquire properties with little or NO money down! I become so wrapped up with lease options that I sometimes overlook how powerful the Subject to Existing Financing Strategy is. This is another way to have the Seller thank you in the process!

Subject To Deals (aka “Get the Deed”) and Lease Options are both proven and profitable ways to invest in real estate with little or NO money down.

When to Do a Subject To vs. Lease Option

This is all very simple. When you purchase a property subject to, you are buying the home subject to the existing financing (the current mortgage stays in place) — that’s all there is to it. You avoid most or all the traditional hassles involved with buying a property. No loan qualifications. No loan fees are involved. Your credit report does not need to be approved…. AND the seller is highly motivated for you to take the property off their hands!

Lease options and sandwich lease options are typically the preferred no money or little money down method when the seller is going to get their share of the money out of the deal. Subject to the existing financing is the tool that you use when the seller is behind in payments and has no expectation they will receive anything from the sale. There are times when you might pay them a little something but most of the time, the seller has no hope of ever catching up on missed payments.

Many of the same circumstances apply to the “subject to” situation as apply to a sandwich lease option. The difference is that a sandwich lease seller has more control of the situation because they are current with their payments. Both work in situations such as divorces when two mortgages must be paid. These also work for out-of-town owners with a vacant house. Or an illness, or any of many other reasons when a seller is struggling to stay current with the mortgage.

Lease options and subject to existing financing deals are typically about property owners struggling with the mortgage. What often makes the subject to deal different is that the seller has fallen behind on the payments.

Subject to Profitability Worksheet

Basically, there are 3 documents to be signed: the deed, the trust agreement, and an assignment of beneficial interest form. That’s how simple the subject to existing financing transaction can be and calculating your profit isn’t any more difficult.

To see what your profits can be, look below at the Profitability Worksheet. The worksheet shows a very realistic example of how these deals work. The worksheet that I provide in the Subject To course can automatically calculate your profits as soon as you type in the numbers for your deal.

By looking closely at the worksheet, you see that it includes a calculation for selling the house on a lease option. This isn’t a sandwich lease option because you now own the house. Owning the property means you can do whatever you want to with it. But a lease option is a good way to go.

Each deal has its own set of numbers, and

you can see that a subject to deal combined with a lease option can be more much more profitable than a straight sandwich lease option!

Help the Seller Understand the Numbers

Remember that the seller is already frustrated with their situation. Chances are they don’t even understand how bad their situation is or could become. Once you’ve made your calculations, you can present your offer to the seller. I wouldn’t share all your numbers with the seller. He or she will come out of this a winner but seeing how you’ll profit can cause them more frustration than they are already experiencing.

When presenting a subject to deal, keep in mind that the motivation for every seller will be unique. Whenever possible, you want your purchase offer to directly address the seller’s needs – how it will help them.

When you do make your subject to existing financing offer, it’s possible the seller’s first reaction will be, “This isn’t enough money.” Since you already know the numbers, you can help them understand why yours is a reasonable offer.

This isn’t enough money! Kindly pull out a sheet of paper and hand the seller a calculator. Ask him/her if you could do a cost analysis together. Show them the comps and ask what the average sales price is. Next, have them subtract out the anticipated commission amount (if they insist that they would sell by owner, remind them that their time is worth something when it comes to all the showings, paperwork, phone calls, etc.). They can then subtract any repairs, the holding costs while it is listed, closing costs, and other costs that would reduce the value. The holding costs until the house sells can be significant – more mortgage payments, utilities, taxes, insurance, etc. The holding costs can be multiplied by 2 months, 4 months, 6 months, or more.

Most people are surprised at how much it will cost to sell their house!

Due Diligence is Required with Subject to Existing Financing

Before you even make a firm offer, you need to know all the numbers and other information about the property – mortgage balance, monthly payments, taxes, etc. Just like you want to open the eyes of the seller to the expenses they are facing, you need to know your obligations with deals involving subject to existing financing.

Research Your State Laws. Laws do vary from state to state. You want to be sure you have all your ducks in a row.

Research the terms of the loan that come with the property. You’ll be looking for things such as whether the loan interest rate is fixed or adjustable. You’ll want to learn if the seller has had the loan modified. Another typical thing to understand is if the taxes and insurance are included in the monthly payment.

Know any other costs you might be taking over. If the seller is behind on the mortgage, the utilities probably aren’t current either. There could be delinquent HOA fees. If there are any liens on the property, the seller should disclose these, or these will show up on the title report.

There are other steps you need to take to correctly assume ownership of the property. An important step I cover in the course is changing the insurance policy to a non-owner occupied or “landlord” policy.

Subject to Existing Financing is a Win-Win-Win Strategy

When you have the subject to existing financing method in your toolbox, you have the unique ability to offer a creative solution that benefits everyone in the deal.

Wins for you as the investor:

  1. No mortgage qualifying is required.
  2. Fast closing – nearly instant ownership.
  3. More flexibility of what you can do with the property compared to a sandwich lease option.
  4. Low risk because any possible mortgage default remains in the name of the seller.
  5. You own all the equity and positive cash flow that the property generates.

Wins for the seller:

  1. A creative solution when the seller is out of conventional options.
  2. Offers an instant solution to their most urgent problem.
  3. Improves the seller’s credit rating when you start making the mortgage payments.
  4. Costs less for the seller by avoiding repairs, commissions, closing costs, etc.

Wins for the lender:

  1. The delinquent loan is brought current.
  2. A probable foreclosure is avoided.
  3. Reliable monthly payments resume.
  4. When the property is sold to an end-buyer, the full mortgage is paid off.

NO Credit Needed for You!

Not only does this improve your ability to acquire properties, but Subject to Deals also improves the profitability of your exit strategies in several ways.

Subject to existing financing is NOT the only one way for you to invest in real estate:

  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. Details of Get the Deed “Subject To.”
  7. Round it all out by Working with Realtors.

Happy Investing!

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.

Creative and Fun Wealth Building Investments With Sandwich Lease Options

Albert Einstein once said, “Creativity is Intelligence Having Fun.” I certainly agree with that when it comes to creative investing with sandwich lease options! Not only is this a fun way to invest, but it’s also a fun way to build a lifetime of wealth. Of course, there is just as much fun along the way because the investor (you) gets to choose from multiple ways to put these deals together. It’s also fun solving problems for people. There’s fun on the side because you don’t have to work at this full time. It’s fun knowing that you will leave a wealth legacy for your family. And the creative fun goes on and on….

There are many variations to the basic sandwich lease arrangement.

Multiple Income Streams and Paydays From Sandwich Lease Options

As I’ve said time and again, sandwich lease options are all about a win-win-win for everyone – the seller, the buyer, and you as the investor. But make no mistake about it; you are in this to make a profit! As we know very well, there are three paydays for every sandwich lease option.

  1. The sandwich lease option fee in the beginning.
  2. The rent spread that you collect each month until the sale closes.
  3. Your portion of the final sale price.

The sandwich lease option fee. If you are new to sandwich lease options, this one is probably the most exciting because payday #1 is almost immediate. As soon as you have a house under contract for a sandwich lease option, you’ll easily find a tenant-buyer excited for the rent-to-own opportunity. In fact, it’s easy putting together a waiting list of tenant-buyers. Collecting your sandwich lease option fee happens at the same time the tenant-buyer signs the lease option agreement. This can be a payday for $10,000 or more (that’s not even your biggest payday). Typically, this happens in a matter of a few days. No need to wait months or years as with other investment strategies. Even better yet, this is only the first of three paydays….

The rent spread. This is your second (and ongoing) payday that is unique to sandwich lease options. You receive this payday every month until the tenant-buyer completes the purchase of the home (often you collect for a year to 18 months). This isn’t your biggest payday, but it does come in month after month. The rent spread is the difference between the amount you collect from the tenant-buyer each month and the amount that you pay to the seller. The key to the amount of the rent spread is often based on the seller’s mortgage payment. For instance, the seller might need $725 to cover the mortgage each month but the current market rate for neighborhood rent is $1,250. The rent spread that you collect each month is $525. Not bad for your smallest and ongoing payday! Then there is the third and biggest pay of them all….

Your portion of the final sales price. As the meat in the middle of the sandwich lease option, the purchase amount you pay to the seller is not the same as what the tenant-buyer pays to you. Again, this can often be based on the difference between what the seller owes on the mortgage compared to the fair market value of the home today. So that everyone gets a win in the deal, the seller will probably collect more than the outstanding mortgage but there will still be plenty for you. The numbers are different with every deal. An example could be that you pay the seller $225,000 at closing while collecting $265,000 from the tenant-buyer (now the proud new owner). That makes your third payday a whooooping $40,000!

In this realistic example, your total profit for a sandwich lease option could be as much as $59,000!

Creative Variations to the Sandwich Lease Option

As a new investor, does the sandwich lease option slightly intimidate you? It is a three-step process that can take 18 months to complete while you collect multiple paydays along the way. Those 18 months might not sound like as much fun to a beginning investor as it does to me with my decades of experience. So, let’s consider the cooperative lease option as a simpler variation that can be your ideal beginning place.

Cooperative lease options. This is an outstanding way to begin a part-time career as a real estate investor. Cooperative lease options only have one payday instead of three. However, it’s often a stepping stone to a full-time career into the three-payday sandwich lease option. But for that one payday, your risk is super low, and it takes almost no time at all. Being in and out of the deal within a week is entirely possible. Your task with a cooperative lease option is simply to connect the seller with the tenant-buyer and then get out of the way. Like I mentioned above, this can happen in a week or less. Connecting the seller and tenant-buyer involves nothing more than putting the lease option paperwork in place. Once these two reach an agreement, they work together until the sale closes. That means you don’t collect the rent spread or a portion of the sales price, but you do collect the hefty option fee that is the first payday… just for bringing the seller and tenant-buyer together… very creative and very fun!

Working with Realtors®. This is a highly innovative approach for finding sandwich lease options in today’s sellers’ market. Working with realtors supercharges the creativity when you combine the realtor’s knowledge of the marketplace with your knowledge about sandwich lease options. Realtors jump on this creative opportunity when they hear the words they dread the most, “I’ll have to rent my house if you don’t sell it soon.” For Realtors, today’s sellers’ market is about not having enough houses to sell. What you offer to Realtors is a creative way to sell more houses by including houses that don’t hit the gold mark that preapproved buyers demand.

Variety is the spice of life and lease options have variety.

Sandwich Lease Options are the Most Fun When They are Easy

Sandwich lease options are fun and easy when everything you need is at your fingertips. Everything is included from advertising for a seller to qualifying the tenant-buyer. It’s all backed up with fill-in-the-blank forms and contracts that have been approved by an attorney. The forms can be used in all states but as with any real estate contract, you should have these reviewed by a real estate attorney in your state. The instructions are so detailed that they include how to take the master forms and contracts that come with the course and turn them into your own master forms to use again and again.

The details are in the paperwork. For instance, a standard rental application is not appropriate for a sandwich lease option. After all, you’re looking for a tenant/buyer that can qualify for a mortgage in a few months. You need to know more about the person’s work and income history in addition to the standard landlord references.

As another example, a sample letter for the tenant/buyer to begin credit repair is included. This is truly a detailed course. As you already know, the tenant/buyer becomes responsible for the maintenance of the house that they will be purchasing. A sample letter reminding them about the required maintenance is included.

More sandwich lease option materials include:

  1. Criteria for lease option applicants.
  2. Option to purchase agreement.
  3. Property inventory.
  4. Tenant/buyer ledger.
  5. Letter for late tenant payment.
  6. Much more.

Everything you need for your success is here. There are advertising scripts and telephone scripts for qualifying a buyer before you meet them or go to the trouble of showing the house.

It’s all about a Win-Win-Win for everyone. Sandwich Lease Options are creative solutions that work for you, the seller, and the tenant-Buyer!

Take immediate action towards your creative and fun career with sandwich lease options!

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

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.

Reduce Your Risk 99% by Taking Control Without Ownership Using Lease Options

Career Tip #1 – If you want to make more money and at the same time, invest less of your own money, you need to learn how to take control without ownership using lease options. This business principle should be simple to understand. Exposing less of your own money in a deal reduces your risk. When you control a $250,000 property with a $1,500 lease option fee, your investment risk is less than 1%.

Not only do lease options require much less money, but lease options will also always have a much higher rate of return.

Why Understanding Your Risk is Important

Investing is always about Risk and Reward. The risk is how much you could potentially lose on a deal. The reward is how much you could earn on the same deal. People have a habit of talking about the reward but skipping over the risks.

Many types of investments require that you take a lot of risks to earn a small reward. Take for example investing $1,000 in the stock market to buy 10 shares of stock at $100 each. A year later, the stock went up in value $5 per share. With 10 shares, you earned $50. You risked $1,000 to earn $50. In my book, that’s a ridiculously small reward for whole a lot of risk. There are a lot of risks out there. The company that you invested in could have gone out of business and you would have lost everything. It could have been involved in a terrible scandal that caused the stock to lose 90% of its value. The entire stock market could tank in general causing the value to go down 50%. That’s a lot of risks that you have no control over for a very small reward.

Control without ownership using lease options has almost no risk but a lot of rewards. It’s common to be able to take control of a $250,000 property for a $1,500 lease option fee. That means the most you can lose is $1,500 but you have control of a $250,000 property. The big key to this is YOU HAVE CONTROL. John D. Rockefeller (widely considered the wealthiest American of all time) once stated,

“Own nothing, but control everything.”

Control without ownership using lease options uses the Value at Risk (VaR) model to calculate risk. This is a statistical measure showing your level of risk in relation to the portfolio that you control. The VaR measures the maximum potential loss with a degree of confidence for a specified period. With a sandwich lease option, the maximum potential loss is the $1,500 lease option fee. The specified period of time is the option period (usually about 18 months with a sandwich lease option).

Control Without Ownership Using Lease Options has the least amount of risk that I know of!

How Control Without Ownership Using Lease Options Almost Eliminates All Risk

If you want to earn more money and at the same time invest less of your own money, you need to learn how to take control without ownership using lease options. The two methods I prefer the most are the sandwich lease option and cooperative lease option. Both are extraordinarily low risk with the cooperative lease option possibly being -0- risk. But the sandwich lease option brings more rewards.

The cooperative lease option isn’t as profitable but some of my students have taken control of a property for a few weeks or a month without even putting up any lease option fee at all. These investors use their know-how to create a bridge between the seller and the tenant-buyer. They help the seller and tenant-buyer create the lease option deal and then get out of the deal. The tenant-buyer puts up the lease option fee that becomes the funds paid to you as the cooperative lease option investor. That lease option fee coming from the tenant-buyer for a $250,000 house can easily be in the neighborhood of $12,000. That’s a very handsome reward without taking any risk!

The sandwich lease option has much more reward but does have a little more risk. This is where you put in your $1,500 investment. But you stay in the deal longer to earn the bigger reward. You still collect that large upfront lease option fee from the tenant-buyer. And you receive a portion of the rent payment every month until the sale is completed. When the sale is completed, you receive the biggest payday of all. You collect the difference between what you owe the seller and what the tenant-buyer has agreed to pay for the home. Control without ownership using lease options for a $250,000 sandwich deal can easily earn you $36,000. You didn’t risk $250,000 to earn that $36,000. You only risked $1,500!

How Many Deals Can You Control in Today’s Super HOT Real Estate Market?

Today’s Hot Market is Perfect for Lease Options

Across the entire country, the housing market is on fire. Would-be homeowners refuse to give up on the American dream of home ownership. According to the latest poll from PEMCO Insurance, a big majority of people who don’t currently own a home say they still aspire to. This is despite the obstacles facing younger buyers in particular.

The primary obstacles facing today’s first-time homebuyers are the down payment and loan requirements. These are the exact two things that sandwich lease option investors help tenant-buyers overcome. The lease option fee can become the biggest part of the down payment. Tenant-buyers living in the home that they will soon own is a tremendous motivator for them to save the remainder of the down payment to close the sale in 18 months or 2 years. The same amount of time that most tenant-buyers need to clean up their credit to meet the loan requirements. Sandwich lease options are ideal for these times and this market!

Your path to ultra-low risk in today’s hot market is to have Control Without Ownership Using Lease Options!!

 

Here is how you take control RIGHT NOW

  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.

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.

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