Do you recognize that if you close 100 sandwich lease options deals in 3 years can easily earn you $3.5 million? That comes to $1.17 million per year or $97,500 per month. Closing 100 deals in 3 years amounts to fewer than 3 deals per month (2.77 deals per month)? These are dollar amounts that you can earn part-time for about 10 hours of work each week!
I know that involves some math, but I think $97,500 per month is worth crunching a few numbers and a few hours a week of work. I think you’ll agree!
Multiple Ways to Close No/Low Money and No/Low Risk Big Payday Deals
We’ll quickly get into an important advanced technique for closing sandwich lease options because those are the bread and butter of creative real estate investing. But it’s not the only way to close high-value deals and the best way to close the most deals is by using the right tool at the right time.
After decades of creative real estate investing and being involved in thousands of deals, these are the tools I find to be the most valuable for almost every circumstance when I’m trying to help a seller or student that can benefit from my years of experience.
Cooperative Lease Options. This is the fastest way for an investor to put a paycheck in the bank because these often close for you in a month or less. All it takes is for you, as the investor, to find a seller and write a lease option deal with them. You then immediately “flip” the lease option contract to a tenant-buyer (retail) or another investor (wholesale) and you keep the option fee that the tenant-buyer or other investor pays for your lease with the option to purchase. With that, you are out of the deal and do not stay in the middle as you would with a sandwich lease option.
Buying and Selling with Lease Options. This is the bread and butter of creative real estate investing. You get started with very little or no money down and should put the first of 3 paydays in your pocket (yes, 3 paydays) in a few days or a month at the most. To collect all the paydays, you stay in the middle of the deal until the tenant-buyer closes the purchase. I like to close the final purchase with the tenant-buyer in 12 to 18 months, but these can take up to 3 years. I call this your fastest way to Future Financial Freedom (FX3). You’ll have the infrastructure for your first deal at your fingertips.
Working with Realtors. This covers two big topics every real estate investor needs to know. How can I work with Realtors? -AND- Should I become a Realtor? As a sandwich lease option investor, you will be looking for white-picket-fence houses and Realtors have some of the sweetest deals available on the market. Some of the best deals do get snatched up before they hit the market, but there are many other deals left behind that no one sees. A good estimate is that 10% of these sweet deals go unsold by Realtors and they will jump at the chance to present a sandwich lease option to their sellers once you explain how you can help everyone involved with these houses that would otherwise go unsold. I network continually to tell Realtors what I do.
Get the Deed “Subject To.” This technique is different from sandwich lease options but is definitely the solution some sellers need. This is a way to acquire ownership of properties with little or NO money down! Sometimes you may be able to receive money when you buy, and have the seller thank you in the process! There is a transfer of ownership at closing, but the mortgage stays in place. The investor buys the property “subject-to” the existing financing. Many times, the best financing that can be obtained for a property is the financing that’s already in place!
Your Wealth Building Arsenal. This is the whole enchilada wrapped up into one tight and tidy package. The Wealth Arsenal combines my four most popular real estate investment training courses into one powerful package! In the Wealth Arsenal System, you’ll receive the Cooperative Lease Options course, the Working With Realtors course, the Buying On Lease Options course, and the important Selling On Lease Options course.
This is the GPS to your financial future!
Along with other valuable information, through the Wealth Building Arsenal, you will learn:
How to tap into hidden sources of leads for lease options!
How to analyze deals in less than 30 seconds!
The magic words to say when talking to sellers to get the contract signed!
How to easily gather a team of experts to help you succeed!
The best way to succeed with anything is to learn from others who have successfully done it – wouldn’t you agree? It is also important to have a proven system. Something that is proven and tried by many people, in many areas, and in many types of markets.
Another Advanced Technique for Closing Sandwich Lease Option Deals
Having done thousands of sandwich lease option deals, I’m frequently asked how the deal actually cashes out at the end. So, I wanted to share some thoughts and simplify the process for those who are curious.
With the sandwich lease option, your biggest of three paydays comes when the tenant-buyer completes the purchase of the home. The tenant-buyer is going to need to obtain a mortgage to complete the deal. The tenant-buyer (but not you) will have to show documented seasoned funds and paper trails. Because you are the expert in the sandwich lease option process, it’s wise for you to understand seasoned funds and paper trails so that you can help your tenant-buyer.
Important Note: Instead of seasoned funds and paper trails, you (as the investor) only need to come up with a small “option fee” to take control of the property. You’ll even be repaid that small cost very quickly. For you, there are no banks involved, no need for seasoned funds, and no need for paper trails.
For a smooth closing, you want to help your tenant-buyer be prepared with seasoned funds and paper trails. For them, this involves funding the down payment and closing costs. They will need a bank account so the lender can request copies of bank statements. The lender strongly wants this account to have signature authority limited to the names that will be listed on the property title or deed. This account is where the bank looks for seasoned funds that have been there for 60 or 90 days. Banks also ask for other financial information like pay stubs, but they want to see normal and expected transactions happening in the bank account.
The bank’s concern with paper trails involves unexplained large cash deposits (or a stream of small deposits). Some lenders do allow down payment funds to be a gift from close family and friends. These can be explained in a letter to the bank from the person making the gift. The letter needs to be clear that the money is a gift that will not have to be repaid. Not a big deal but it does require a documented paper trail.
There might be other deposits to the account that require an explanation. This could be pay from a temporary second job or from selling an asset such as a boat or an unneeded car. Explanations are fine as long as the money is from a legitimate source and doesn’t have to be repaid. You want to help your tenant-buyer understand this ahead of time so that there are no complications when the time comes to close the sale.
None of this is difficult when you use my sandwich lease option method. Because you only control the property, you are never on the hook to obtain a mortgage. Your only role involving seasoned funds and paper trails is helping your tenant-buyer put the paperwork together so that the deal is completed, and you collect your big payday at the closing table.
Let’s get you started making money today!
Act Now to learn all the ways!!
- Buying and Selling with Lease Options.
- Your Wealth Building Arsenal.
- Cooperative Lease Options.
- Working with Realtors.
- Investing In Real Estate with Lease Options.
- Personalized Coaching.
- 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.
