Sandwich lease options will be a massive game-changer for new investors in 2022! This couldn’t be any truer than for people facing another year sitting in a cubical or factory work station being miserable and depressed five days a week and still not bringing enough home in their paycheck to live the amazing life they daydream about all day.
I’m not talking about living an amazing life just on the weekends either.
With sandwich lease options, you will work a few short days to be able to take months off at a time.
By following these golden tips, you should expect your sandwich lease options to bring you financial freedom without major hassles. Your goal in these deals is financial security through a reliable income that brings serenity along with a win-win-win for everyone involved.
Tip #1 – Speed of implementation with follow-up. It’s your choice. You can start in a slower gear with Cooperative Lease Options until you feel the confidence to go at full speed. By full speed, I mean the whole kit and caboodle with the Wealth Building Arsenal. Neither case requires dreary 60-hour workweeks. Speed of implementation only means taking that first action. Your first action is picking up the telephone and making calls using the script that has been time-tested for results. After that, it’s all about the follow-up. After a few short phone calls, you will have prospective sellers. They will want more information. They will have questions after you get off the phone with them the first time. They will want to see the numbers. They will want to see the contract the two of you will put in place. You’re not chasing butterflies in the wind by talking to these people. These are the people that are close to becoming the seller in your sandwich lease option.
By following up with these people, you will be signing deals in a few short hours or days.
Tip # 2 – Use all your advantages of being a landlord in a sandwich lease option. You don’t have a mortgage on the property so there is no long-term risk. The best part is you have rent-paying tenants with the goal of buying the home. These renters are not likely to leave you. They are highly motivated to pay the rent on time because timely rent payments also improve their credit score. Everything is working in your favor as a sandwich lease option landlord. The worst case is a renter moves out. If they do, they forfeit the lease option fee, and you collect a new option fee from the next tenant-buyer. Even the worst-case scenario isn’t risky. A sandwich lease option is almost always free of maintenance and repair costs for you as an investor. Either the tenant-buyer or the seller bears these risks and costs. The tenant is motivated to complete the purchase when they are mostly responsible for maintenance and repairs. If a major cost is involved, it becomes the responsibility of the seller or the seller’s insurance company.
As a sandwich lease option investor, you have no risk or cost for maintenance and repairs.
And there is the traditional landlord fear and risk of property damage. First, the risk is extremely low anyway. Tenants planning to become owners don’t damage their future homes. But since you are not the owner, you are still not at risk if something strange happens. You want to write your sandwich lease option contract with the seller correctly, so you aren’t at risk for property damage.
Tip #3 – Only work with tenant-buyers who have a real chance of obtaining a mortgage in nine to fourteen months. The timeline isn’t written in stone but these sandwich lease option buyers are out there by the hundreds and thousands. You should be making deals with the best qualified tenant-buyers.
The meat of this tip is that by screening your buyers well, you reduce the amount of work you do in the long run.
Tip #4 – Connect your tenant/buyer with a mortgage professional. You will wan to have a mortgage professional on speed dial that works well at helping buyers that are already close to qualifying for a mortgage. You may want this professional to sit down with your prospective tenant-buyer before signing the contract to explain what they need to do to qualify for a loan. This increases the tenant-buyer’s confidence that you have their homeownership interests in mind.
Their enthusiasm to become homeowners increases when they have a clear road map showing them step-by-step how to qualify for a mortgage.
Tip # 5 – Keep everyone in the loop. This is a WIN-WIN-WIN deal for everyone, and everyone should know what is going on. For instance, never tell the seller that you will be living in the house. You plan to sublet it to a tenant-buyer and the seller should know this from the beginning. It’s also good to go through the documents with everyone involved and have them initial key sections indicating they read and understand the details of a sandwich lease option.
As a professional problem solver, you want everyone to know what to expect and be comfortable with it.
Tip # 6 – Have all the tools in your toolbox. Your marketing will mostly bring people interested in sandwich lease options. But you will occasionally talk with people that don’t make good sandwich lease option sellers. That doesn’t mean you can’t still do a lease option. Many times, it just means using a different technique to get the deal done. These can be people that are behind in their mortgage payment or people that don’t want to stay in a sandwich lease option for their own reasons. You may have to take more control using the technique “Get the Deed, Subject to Existing Financing”. In exchange for taking more control, your total payday becomes much bigger. You take over the mortgage payments subject to existing financing. You do this with little or none of your own money and none of your credit. Now, you can do anything that you want with the property. You can sell it on a straight lease option. You can flip it. You can become a long-term landlord. The choice is all yours.
What makes this very appealing is that all the profit in the deal goes straight into your bank account.
Bonus Tip #7 – “With great power comes great responsibility.” Many people attribute that quote to Uncle Ben in the Spiderman comic. Actually, no one is sure where it came from, but it has been attributed to many other great people including Voltaire, Winston Churchill, Theodore Roosevelt, and Franklin D. Roosevelt. What the quote means for you is that there is a lot of power in a sandwich lease option. Never be unscrupulous as you might have heard some investors can by undermining the deal to walk away with the option fee because the tenant-buyer can’t complete the purchase. Always strive for a WIN-WIN-WIN for everyone.
With great power also comes great reward when everyone completes the sandwich lease option and you collect all three of your paydays!
If you want your Financial Freedom in 2022, here is what you do NOW:
- Investing In Real Estate with Lease Options.
- Advanced strategies for Buying and Selling with Lease Options.
- Your Wealth Building Arsenal.
- Quick start with Cooperative Lease Options.
- Get the most by Working with Realtors
- Add Personalized Coaching.
- Expand to Get the Deed “Subject To.”.
Happy New Year and the Best to You and Yours in 2022,
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.