Rent to Own Properties for Today’s New Marketplace

You may not have noticed, but the residential marketplace is changing. In some ways, the more the marketplace changes, the more it stays the same. Too many people are still unable to buy a home because of high home prices, wages that don’t keep pace with inflation, and strict mortgage approvals. As of Mid-March, higher interest rates will be added to the burden making it more difficult for first-time buyers. But…

…Rent to own properties continue leveling the playing field to make it possible for people to enjoy the benefits of owning a home sooner rather than later.

Higher Interest Rates are Coming Now

The median price for a home in January was $350,300, up 15.4% from a year ago, according to the National Association of Realtors. And that was in the middle of the winter. One of the big reasons was to lock in interest rates ahead of the Mid-March rate increase by the Federal Reserve that is now considered a foregone conclusion.

Rent to own properties and sandwich lease options will play a strong role to help people find a way to become homeowners in the tough months ahead.

Mid-March is also almost certain to be only the first uptick in interest rates this year. Three or four more rate hikes are expected to follow in coming months. The ability to purchase a home has been a big problem for millions of people for a couple of years already.

It won’t get easier anytime soon without a creative solution like rent to own properties.

Here is what you can expect as mortgage rates rise…

What Higher Mortgage Rates Mean for Rent to Own Properties and Homebuyers

Rising home prices plus higher interest rates will eliminate many buyers from the market. Fewer buyers should lead to more stable prices and fewer bidding wars. The refinance market has already seen a 45% decline because most homeowners that could benefit from the historically low mortgage rates have already done so.

Moderate-income buyers who were barely qualified for a mortgage when interest rates were lower will now be unable to afford a mortgage. Even those that had a cushion in qualifying will see it harder to afford a mortgage because their total budget will be impacted by inflation rising all consumer costs.

As mortgage rates rise, affordability will keep many more buyers out of the market. For rent to own investors, this will reduce the competition for the limited supply of homes. At the same time, there will still be pent-up demand from first-time buyers.

It will be the ongoing pent-up demand for homeownership that heats up the demand for rent to own properties!

Rent to Own Properties – Move in Now, Buy Later

When fewer people are able to buy homes because of higher mortgage costs, the rise in home prices can be expected to slow. Bidding wars may soon be a thing of the past. This can be good for investors interested in rent to own properties. More sellers can be expected to enter the market as they realize this is the top of the market and it is time to sell. Or will it be too late?

Enabling buyers to qualify for a mortgage is the backbone of rent to own properties.

Investors and sellers will have a solution with sandwich lease options.

Rent to own properties work well in all scenarios. Especially my favorite, the sandwich lease option. If people cannot buy, they have to rent. Rent to own properties is a great solution in this scenario.

For both sellers and sandwich lease option investors, this is an opportunity to collect reliable monthly rent as a landlord without the hassle of maintenance and repairs. Once the deal is in place it becomes a passive income stream. Based on my decades of real estate investing experience, I’m firmly convinced that lease options are the least risky and still highly profitable niche for investors in this scenario.

You can expect tenant-buyers to treat rent to own properties as a purchase agreement. Although they are renting, their intention to purchase is already there. Tenant-buyers should have an inspection done before signing the contract. Then the tenant-buyer needs to take the step of working with a mortgage professional to develop a plan enabling him/her to qualify for a mortgage before the option period expires. This creates the mindset of buying the home. Tenant-buyers take better care of homes. The sandwich lease option contract specifies that tenant-buyers make and pay for most repairs. At the same time, you and the seller collect a higher than market rent with the full expectation of a big profit when the sale closes in several months.

This is the best of both worlds!

Rent to Own Properties is a Solid All-Around Strategy

Real estate markets change. They go through a well-known cycle. There are hot markets, normal markets, and cool or cold markets. Market conditions don’t change overnight but there are leading indicators. We’ve enjoyed the current hot market for several years. This was a sellers’ and landlords’ market. Landlords enjoyed ever-increasing rents. Rent to own investors did also. Rehab flippers enjoyed ever-increasing sales prices. Rent to own investors did also. Today, rent to own properties will continue flourishing as the market moves from hot to normal and will continue prospering even when the market eventually cools off.

Something good for tenant-buyers (and rent to own investors) is that all the foreclosures, short sales, job losses, and other credit disorders from past years are now removed from credit reports. But that doesn’t make it is clear sailing for homebuyers. The mortgage market has already changed, interest rates have already risen since last December. It’s time for investors to adjust to the new market condition of higher interest rates.

Rent to own properties will continue thriving in this environment while other investment strategies struggle.

Why Rent to Own Properties Will Continue to Prosper

The tenant-buyer’s credit score and down payment are a benefit in today’s evolving real estate market. Rent to own properties have a built-in mechanism to help people rebuild their credit by making timely rental payments during the lease period. This increases the likelihood that they’ll be approved for a mortgage to buy the home in a short amount of time. The lease option fee applies to the down payment. Even if that isn’t enough for the full down payment, the tenant-buyer now has time and motivation to save the rest during the option period. At the same time, sandwich lease options continue to be favored by investors

You don’t own it, no one can sue you for it, and no one can put a lien against you – this is low-risk investing. Your expenses are nothing because the tenant-buyer pays for repairs and maintenance. As an investor, you don’t have to have any money in the deal. You pay a small “option fee” for control rather than a hefty down payment. Your small option fee typically comes out of the tenant-buyer’s large option fee. That makes it no or low cost.

Exactly what you’re looking for – a low-risk and low or no-cost investment property!

Who is sandwich lease option investing suited for? The short answer is any investor. Beginning investors that are cash poor find the cooperative lease option particularly appealing. As does the experienced investor that has maxed out his/her ability to obtain new financing with high interest rates. Also, every investor in between. Real estate investing is about “controlling” as many properties as you can. It is NOT about “owning” as many properties as you can.

This makes rent to own properties ideal in today’s market with rising interest rates!

Answers to investing questions in any real estate market are immediately available to you:

  1. Begin with Cooperative Lease Options.
  2. Advance to strategies for Buying and Selling with Sandwich Lease Options.
  3. Your Wealth Building Arsenal.
  4. Investing In Real Estate with 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.

Cooperative Lease Options – 3 Ideal Times These Succeed

The cooperative lease option is the ATM of real estate investing when you want to pocket fast cash. This happens by bringing together two powerful mainstream real estate strategies – WHOLESALING AND LEASE OPTIONS. Why is the combination of these two strategies so powerful? Because wholesaling allows you to offer great deals and lease options get you in and out of these deals with minimal risk and little or no money.

Cooperative lease options are for the beginning investor and the busy investor wanting to complete a fast deal in 4 short and easy steps!

The Art of Flipping a Real Estate Lease Option

Flipping houses has become a phenomenon in the real estate investing world. The problem is that flipping houses is a big risk that takes big money. You must outright buy a house that can easily cost $225,000, plus all the closing costs, and you will probably need to qualify for a loan. Once you own the house, you need another $40,000 or $50,000 to do the renovation that also requires you to manage several crews of subcontractors. Then you are going to pay a real estate commission when you finally sell the house six months later.

A traditional house flip takes TOO MUCH MONEY. TOO MUCH RISK. TOO MUCH TIME. TOO MUCH WORK.

Cooperative lease options flip houses WITHOUT any of the hassles!

Cooperative lease options are about connecting a seller willing to lease with an option to buy with a tenant-buyer ready to move in but needing just a little more time to qualify for a mortgage.

As the cooperative lease option investor, you show them how to do it and help them put the contracts in place.

For your knowledge and minimal work, you collect a handsome payday that comes out of the tenant-buyer’s lease option fee.

That’s It! That is the Art of Flipping a Real Estate Lease Option! That is a Cooperative Lease Option!

A wholesale deal is the assignment of a real estate contract to a tenant-buyer. The wholesaler (you) collects a “finder’s fee” or “assignment fee” for finding the property for the tenant-buyer. This is exactly what a cooperative lease option does. It flips the lease option from you to the tenant-buyer.

A cooperative lease option investor never actually owns the property. You only secure the property under contract and then flip the contract to the tenant-buyer – without ever going to the closing table. Simple, no risk, little or no money, super-fast, and no hard renovation work required.

It means the seller will have a tenant-buyer in the house to generate rental income to make the mortgage payments until the tenant-buyer qualifies to complete the purchase. These tenant-buyer is willing to pay top dollar for the house, which means the seller will collect the full market price for the house.

What you do in a cooperative lease option is bring the seller and tenant-buyer together for a lease option and collect an option fee from the tenant-buyer but then you step out of the deal. The seller and buyer only have to complete the sale before the end of the option period.

This is a WIN-WIN-WIN for the seller, you as the investor, and for the tenant-buyer.

The 3 Ideal Times for a Cooperative Lease Option

The sandwich lease option is the most profitable and most preferred method for investors to connect sellers with tenant-buyers outside of traditional channels. But there are times when cooperative lease options are the better choice for everyone involved.

Three of the best times are:

1. When you (the investor) are just getting started and could use a quick deal to generate fast cash. After one or two cooperative lease option deals, you can move one to the more profitable sandwich lease options or other methods in the Wealth Building Arsenal.

2. When you have maybe a dozen sandwich lease options under contract and generating monthly rental income (let’s say $250 per house per month) but it will be several months before a tenant-buyer closes a purchase to generate your biggest payday. The cooperative lease option lets you have your cake and eat it too when you have a steady monthly income from sandwich deals and can still pocket a nice size extra payday while waiting for the dozen biggest paydays to arrive. This is a highly effective way for experienced investors to maximize the Wealth Building Arsenal.

3. You have a deal that will generate a decent lease option fee for you but there isn’t much equity (no big payday) for you to earn by holding the rental contract as a sandwich lease.

Let’s dive deeper into the version when the seller doesn’t have much equity…

Cooperative Lease Options for the Option Fee

As the investor, you are aware that a generous finder’s fee will come from the option fee, but the seller can’t or won’t leave much meat on the bone for you to collect a big payday when the tenant-buyer completes the purchase. Typically, this is because the seller doesn’t have much equity in the house. When it comes time for the tenant-buy to close the deal, the seller will need almost all of the money to pay off his/her existing mortgage.

If you want to, you could do this as a sandwich lease option. You could collect your part of the option fee upfront and collect your portion of the rent until the tenant-buyer completes the purchase. But there wouldn’t be much meat on the bone for you at the closing table. The rent portion is the smallest payday that you collect in a sandwich lease option. If you stay in the middle, you must track the rent payments, maybe be involved if a major repair is needed, and make sure the tenant-buyer is soon going to qualify for a mortgage. This is probably going to take a year or 14 months. It’s not a huge amount of work but it is for your smallest payday because there is no meat on the bone at the end of the deal.

This makes it an ideal time to get in and out with a cooperative lease option by collecting your finder’s fee at the beginning.

The 4 Short and Easy Steps to Every Cooperative Lease Option

Here is how simple it is to get started with cooperative lease options. It doesn’t matter which of the ideal situations you find yourself in, there are only 4 short and easy steps to every cooperative lease option.

1. Find any seller that will benefit when you can bring them hard-cash in two or three days along with a paying tenant in to cover their mortgage – a paying tenant today that will pay full price for the house in a few short months.

2. Find a tenant that has part of the down payment that can be used to pay the option fee and will soon qualify for a mortgage. One advertisement on craigslist will probably bring 10 or more telephone calls the first day.

3. Use the template contract to put the cooperative lease option in place between the seller and the tenant-buyer.

4. Collect your “finder’s fee” that comes out of the option fee paid by the enthusiastic tenant-buyer.

Step 5 – Exit this deal to move on to another cooperative lease option or a highly profitable sandwich lease option!

Got questions? Drop me an email at: LIMITLESS OPTIONS

NOTHING IS STOPPING YOU from jumping into real estate investing TODAY with no risk and little or no money!

  1. Investing In Real Estate with Lease Options.
  2. Advanced strategies for Buying and Selling with Lease Options.
  3. Cooperative Lease Options.
  4. Working with Realtors.
  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.

Making Sandwich Lease Options Simple

Sandwich lease options are the simplest and fastest way to earn real estate investment income and reach financial freedom without taking risks. Both seasoned and beginning investors will be thrilled with the opportunity to control and profit from multiple properties with little or none of their own money tied up in the deals.

People want sandwich lease options. They just need someone to structure the deal for them.

Knowledge is the Power Behind Your Success

With everything to gain and nothing to lose, the only thing holding you back is a fear of learning how sandwich lease options work. I’ve always said that sandwich lease options are win-win-win deals for everyone involved, which is why I think they are sexy.

No capital is needed by you as the investor. What you bring to the table is the knowledge to put these deals together! We all know that knowledge is worth money, and your knowledge is why jittery but hopeful sellers and buyers need you in the middle of the deal!

You will see three profit centers with a sandwich lease option – cash now, cash flow, and cash in the future.

How You Do a Simple Sandwich Lease Option

When I started investing, I didn’t know about sandwich lease options. I thought what I was doing was something like a highly creative zero-down deal. Since then, I have tweaked and retweaked my own tools and techniques as well as added tidbits from all the option courses I’ve been able to find. Over the years, I’ve combined the best of what I’ve discovered into an entire series of courses, audios, and videos. I’ve also completed hundreds and hundreds of lease option contracts as well as helped thousands of students do the same for themselves.

You’ll be amazed at how simple sandwich lease options become when you learn from the experts that came before you!

Three simple steps to a successful sandwich lease option:

  1. Find a seller that wants to earn cash from their property.
  2. Find a tenant-buyer excited about living in the home they will soon own.
  3. Use the contract template to put the deal together.

Sandwich Lease Options start putting money into your pocket long before the entire deal even gets to the closing table. All money made in real estate is made by controlling property. Ownership just adds burdens and responsibilities. The power of sandwich lease options is the knowledge to control the property by putting the deals together without owning the property!

The Ideal Time to Use a Sandwich Lease Option

I don’t always use sandwich lease options. At other times, I use seller financing to get the deed and at other times I use cooperative lease options. Often, I work with Realtors because they have the pulse of the current real estate market. But the sandwich lease option is at the heart of my investing strategy because it is so simple, low risk, and requires little or no cash.

A sandwich lease option is ideal for the beginning investor wanting a simple technique that minimizes risk, has little responsibility, and does not want a bank involved!

Your ability to be flexible with the seller is what creates the ideal situation for a sandwich lease option. Being flexible allows you to create a great deal that is attractive to the seller. You offer flexibility because you’re going to make money no matter how the deal is structured. Tenant-buyers want these deals because it is a sure path to living in a house they want today and can purchase tomorrow.

The sandwich lease option is not a get-rich-quick scheme. With the knowledge to do it right, it puts money in your pocket right away and continues to pay you a steady income stream of several hundred dollars each month. It all leads to a big payday of tens of thousands of dollars when the tenant-buyer completes the purchase.

Your Future Financial Freedom (FX3) happens when you put one, two, or three of these deals in your financial pipeline each month.

You Begin by Simply Understanding the Sandwich Lease Option Financials

John D. Rockefeller said the secret to achieving great wealth is “control everything, own nothing.” That is exactly the strategy of sandwich lease options. When you seek control rather than ownership, you become a lot less concerned with the purchase price. Instead, you become much more interested in the “terms” of the lease. You still need to be reasonable about the price (but less so). However, more of your attention is on the terms such as the initial option fee, how long you’ll have control, and the monthly rent to keep control.

Because you are less concerned with the purchase price, you still profit nicely although you pay the seller close to the full asking price. For you, this opens a massive market that is not available to most real estate investors who are severely limited to only highly discounted distressed sales.

Not every house will be available to you because many sellers want all their money at once. Some of the sellers that you target are those with a vacant house that is costing them money every month. And sellers that need a smaller amount of money very quickly that you can often pay them in a day or two. This creates a much bigger market for you. You are only limited by sellers that must have all their money immediately.

You’ll be surprised how many sellers this appeals to when you offer them Full Price AND Quick Cash!

Your Basic Sandwich Lease Option Strategy

Step 1 is finding a seller that you sign a lease option with. Step 2 is signing a lease option for the same house but with a tenant-buyer. In a sandwich, the meat is in the middle. You are that meat in the middle. The seller and the tenant-buyer bring the bread and butter. That makes it a Win-Win-Win for everyone.

The meat is the best part of the sandwich because it is the financial difference between what you agree to pay for the property and what you sell the property for. PLUS, you are paid a higher lease option fee from the tenant-buyer on Day 1 than the option fee that you pay to the seller. PLUS, you collect a higher monthly rent from the tenant-buyer than you pay to the seller. This earns you a steady income by controlling the property until the tenant-buyer completes the purchase.

There are 3 Winners AND You collect 3 Paydays!

Your big $25,000, $35,000, $45,000 (or more) payday comes at the closing table when the tenant-buyer completes the purchase. At this point, you’ve invested little or none of your own cash, collected a steady income for several months, and banked a big payday in the end. Putting two of these deals in place each month will soon be generating an annual income for you that varies anywhere from $240,000 (12 months X $20,000) to $480,000 (12 x $40,000). How much it actually turns out to be is totally up to you.

Sandwich lease options empower you to make your own financial choices in life (Financial Freedom X3).

Ready to get started with the simple and low-risk sandwich lease investing method? Why Wait? Here is what you need to Start Now!

  1. Your Wealth Building Arsenal.
  2. Advanced strategies for Buying and Selling with Lease Options.
  3. Investing In Real Estate with Lease Options.
  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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