Cooperative lease options are, incredibly, part-time work requiring as little as 3 to 5 hours per week. Cooperative lease options are much simpler than sandwich lease options. You get in and out of these deals very quickly. Each cooperative lease option brings in less money than a sandwich lease, but you are free to do as many as you want and when you want.
Cooperative lease options are a perfect entry point for people wanting to keep their day job and people just getting started as real estate investors!
Cooperative Lease Options are a Career Builder
A great approach is beginning with cooperative lease options but with your eye towards advancing into sandwich lease options. Here is a step-by-step plan for building a career as a real estate investor that you can dial up to full-time or dial back to very part-time whenever you want.
- Ease in with one or two cooperative lease options that can each earn you $4,000 or $8,000 in a few short 5-hour workweeks.
- Fine-tune and grow your cooperative lease option business to do as many deals as you want.
- Outsource your cooperative lease work to an employee as you move up to sandwich lease options that bring in even more and bigger paydays.
- Start considering if you are ready to quit your day job.
- Grow your sandwich lease option business to do as many deals as you decide you want.
- Outsource the sandwich lease work to an employee as you move up to be the boss and owner of your own thriving lease option business. This might be the point when you need to add more staff.
It’s a 6-Step Plan to Total Financial Freedom!
You now have full control of your work life. You and your employees can do either cooperative lease options or sandwich lease options. You do these based on how many hours you want to work. Or you can decide which option works best for a particular deal that comes across your desk. All the decisions are entirely yours to make.
Full disclosure: In the beginning, you may need to put in some extra effort to fully comprehend the material and put processes in place that work best in your local market.
Cooperative Lease Options Bring Fast Start Up Cash
Cooperative lease options are your on-ramp for raising fast cash. You can easily do it at your kitchen table with a telephone. Some of the cash from your first deal or two is all you need to begin building a professionally run business. Your startup cost is close to zero but by following the step-by-step career-building plan, you’ll soon need to hire a part-time employee to do the detail work. Your first cooperative lease deal from your kitchen table can pay an employee for a couple of months and still leave cash in your pocket.
Or maybe you decide to put together cooperative lease options only when you need fast cash in your pocket. One deal can easily finance a great vacation or cover the added expenses over the holidays. It could be a big down payment for a nice new car. Or it could mean finally paying off those high-interest credit cards.
For 3 to 5 hours per week, you get a lot of bang with your bucks.
If you’re ready to launch a new high-paying but part-time career as a real estate investor, I suggest that you use your first deal or two to grow your business by outsourcing the work…
Grow Your Business by Outsourcing the Work
If you are looking for very part-time work with highly rewarding paydays, you want to build processes that outsource the work for cooperative lease options, sandwich lease options, or both. Everything that you need comes with the Wealth Building Arsenal Course – forms, contracts, scripts, checklists, and basic processes.
What you do is customize the process to best match your local neighborhoods and region. This is as easy as identifying the neighborhood you want to do business in and specifying the types of houses that you want to make deals on (for example: suburban 3 bedrooms, 2 baths, with a yard, less than 30 years old).
After you go through the course materials and customize them to your situation, you use checklists and processes to turn it over to an employee to run the day-to-day operations. This person does the marketing, research, and collects information about potential houses, sellers, and tenant-buyers. He or she runs background checks, title/lien checks, and fills in contract templates.
Once the process is in place, your role can be reduced to negotiating terms and conditions with sellers. At the same time, you tour the houses to be assured these are good deals (quality control). You’ll also oversee the deal flow to be sure the right number of deals are in the right phase of the process. This includes making sure enough marketing is taking place to bring in a steady flow of deals. You also want to be sure enough deals have progressed to negotiating contracts, to paperwork preparation, and to the signing phase. That’s about all there is to the cooperative lease option side of your business.
Sandwich lease options are longer-term for bigger paydays. For these, you also monitor progress towards the final purchase of the house by the tenant-buyers. You do not need to do this with cooperative lease options. For sandwich lease options (and more paydays) you make sure rents are being paid on time and that the tenant-buyer’s credit score is improving so that they can qualify for a mortgage. Truth be told, one of your employees only needs to warn you if one of these is getting out of whack.
You can build your real estate investing career and business to any size that you want.
Advanced Solutions Using Cooperative and Sandwich Lease Options
An advanced use of cooperative lease options can be flipping sandwich lease options to other investors. It’s another quick and easy way for you to get in and out of a profitable deal for truly little work. You take the lead in a sandwich lease option but use a cooperative lease option to flip it to another investor. The original contract with the seller must specify that you can reassign the contract. Then, through your network, you find another investor that has a tenant-buyer looking for a lease option. You have the house under a lease option agreement but another investor has the tenant-buyer. You essentially flip the sandwich lease to the other investor who ultimately puts the tenant-buyer in place. Another name for this is “Wholesaling for Quick and Easy Cash.”
When wholesaling, you don’t need to find the tenant-buyer. What you are doing is bringing in a hungry investor from your network. You assign your contract with the seller to another investor. That investor pays you a fee to buy the contract that you have with the seller. The investor you bring in then puts in place a tenant-buyer for the sandwich lease option. For example, I usually take the tenant-buyer’s option fee as my assignment fee for a wholesale lease option. This can be anywhere from $4,500-$10,000 in my area of the country. Can you use an extra $6,000 this month?
Another advanced variation is using a cooperative lease option to complete a sandwich lease option that you already have when it’s time for the tenant-buyer to close the purchase. One of the best things about being a real estate investor is your ability to write contracts in many creative ways. In this creative version of a cooperative lease option, you have a sandwich lease option that has been under contract for a year or so. You keep the contract in place between you and the tenant-buyer until he or she is ready to make the final purchase. But maybe you need some quick cash to complete the deal. Who knows where your finances might be a year or two down the road?
You can use a cooperative lease option to bring in another investor to make the purchase from the seller and then sell to the tenant-buyer. In that scenario, you have already collected the big lease option fee at the front end and the higher rent until the final purchase is made. What the cooperative lease option does is flip to the other investor the difference between your purchase price from the seller and what the tenant-buyer is paying. Exactly how much you pay to the other investor in this cooperative lease option all depends on the creative agreement you make with the other investor.
Real estate lease options are all about finding creative solutions that work for you and others.
- Cooperative Lease Options.
- Advanced strategies for Buying and Selling with Lease Options.
- You’re Wealth Building Arsenal.
- Investing In Real Estate with Lease Options.
- Add Personalized Coaching.
- Expand to Get the Deed “Subject To.”
- 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.
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