I want to make sure that you are ready for the change in the economy that is happening.
This is the time to protect and grow your wealth…
Watch my video below:
I want to make sure that you are ready for the change in the economy that is happening.
This is the time to protect and grow your wealth…
Watch my video below:
Sandwich lease options are successful for many reasons. You control the property without owning it. Profits are very healthy with 3 income streams. It’s
easy to get out of if everyone isn’t happy. And unlike most real estate investments, you can have as many sandwich lease options in progress at the
same time as you want.
The nuts and bolts along with tips for success are what follow…
A sandwich lease option happens when an investor leases a property from an owner (seller) and then subleases it to a tenant-buyer. The purpose of the sandwich lease option is for the tenant-buyer to complete the purchase at a future date that is typically 12 to 18 months in the future. The investor has a separate contract with the seller and another with the tenant-buyer. The fact that the investor is in the middle of the two contracts is the reason it is called a sandwich lease option.
The first contract basics with the seller include the monthly rent, any upfront costs, the purchase option fee the investor pays the seller, the purchase cost, and terms. The terms are where most of the details come into play. Details like how long the option period is and who is responsible for maintenance.
The second contract of a sandwich lease option is between the investor and the tenant-buyer. It has many of the same basics such as monthly rent, upfront costs, the purchase option fee the tenant-buyer pays the investor, the purchase cost, and terms. This is where the investor builds in his or her 3 profit points that include the purchase option fee, the monthly rent spread, and the final purchase price.
Follow these and other tips in the course materials to make your sandwich lease options go off without any major issues and so that you (as the investor)
achieve the most security, income, and fairness for everyone involved.
Tip #1. Qualify the seller. This is a tip that you aren’t likely to find anywhere else. Most investors focus on qualifying the tenant-buyer as being able to
qualify for a mortgage to buy the home in a reasonable amount of time. Before you get to that point, you need to first qualify the seller. You need to verify
information like the seller’s equity in the home, their house mortgage payment, and make sure there are no liens on the property other than the
mortgage. You use the mortgage payment information to be sure there is enough spread for you to earn a profit on the monthly rent. You use the equity
to determine that the final purchase price leaves profit for you after the mortgage is paid in full.
Tip #2. Keep the seller in the loop. Sandwich lease option investors must be honest and upfront. A few investors think they can get more sellers under
contract if they don’t tell them what they are doing. A common bad move is to imply to the seller that you’ll be living in the house rather than being upfront
that you’ll be leasing it to a tenant-buyer. This can blow up on a deceitful investor for many reasons. It might be as simple as the seller showing up at the
front door the day the tenant-buyer is moving in to see how things are going. It will almost always happen long before you get to the closing table or at the
closing table after you have had the deal in place for a year. Deceit will give the seller legal reasons to break the deal with you and you will no longer be
able to complete your deal with the tenant-buyer. Be upfront and honest from the beginning to make everyone comfortable with the arrangement. Your job
as the investor in the sandwich lease option is to solve problems and make the process smooth, so do that!
Tip #3. Have your contract with the seller longer than with the tenant-buyer. This should be intuitive. If your contract with the seller is shorter than
with the tenant-buyer, they could wait for the first contract to expire and cut you out of the deal.
Tip #4. Screen the tenant-buyer. Failing to perform due diligence on the tenant-buyer will put you at the highest risk of the deal not being completed
because the tenant-buyer cannot qualify for a mortgage in a reasonable amount of time. If you don’t screen properly, your problems could start as soon
as they fail to pay the second month’s rent, or you find they are not taking proper care of the home. The Sandwich Lease Options course goes into deep
detail about this subject but among the most essential are:
– Run a background check. It should include evictions, criminal activities, and employment.
– Run a credit check. You need to establish what credit score you will accept and more. The tenant-buyer does not need an 820 credit score but it should not
be so low that it will take five years to qualify for a mortgage. You want to go through the details of the report. A few late pays two years ago are probably
going to be fine. A bankruptcy six months ago is not going to get fixed any time soon.
– Determine their stability for both employment and where they have been living. You need some verifiable income information to assure they will be able to correct their credit problem and qualify for a mortgage. You also need to know they have stable employment rather than changing jobs every six or eight
months. Being stable enough to complete a sandwich lease option deal also means they have a history of living in one place for more than six months or a
year.
– Don’t discriminate. This is for your protection as well as being fair to all applicants. Not following fair housing laws could get you fined or in other
trouble with the law. Know your local and federal discrimination laws and adhere to them.
Tip #5. Arrange to pay the seller’s mortgage. Failing to do this risks that you send the owner a payment each month only to later learn the bank is
foreclosing on the property because the owner decided to pocket the money rather than pass it on to the bank. There are several ways you can arrange to
stay on top of the mortgage payments.
Tip #6. Legally record your option contract with the seller at the appropriate county administrative department. This puts a “cloud” on the title. The owner will not be able to sell the property until it’s cleared. Otherwise, the owner might decide to sell to another buyer. Your only recourse would be to enforce
your contract with the owner by filing an expensive and stressful lawsuit.
1. Advanced strategies for Buying and Selling with Lease Options.
2. Your Wealth Building Arsenal.
3. A fast start with Cooperative Lease Options.
4. Success by Working with Realtors.
5. Investing In Real Estate with Lease Options.
6. Add Personalized Coaching.
7. Expand to Get the Deed “Subject To.”
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.
Like most new real estate investors, when considering a new venture, you probably have a ton of questions — AND YOU SHOULD! You should be asking questions like:
Do I need money to get started?
Will it work where I live?
Will it work in this TODAY’s market?
How do I know where to begin?
Those are all great questions that you do want answers to. However, the first question I think you should be asking yourself is “What can I do as a real estate investor to overcome these questions and fears?”
How much is your business worth when you have control without ownership using sandwich lease options? Let’s consider a typical deal for a $325,000 house in today’s market. With a single deal, you can expect to make about $9,700 from the lease option fee, $32,500 when the sale closes, and $4,800 from the rent spread.
The 3 PayDays from 1 sandwich lease option TOTAL:
$9,700
+ $32,500
+ $4,800
= $47,000
When you do 5 deals a year, you’ll make $235,000 a year. And it only gets better from there. That is doing only one deal every 2 ½ months. That’s a very small time commitment. Bumping it up to 1 deal every month will more than double your HIGH 6-figure income to $564,000.
If you do one $47,000 deal every month for 3 years, you’ll make $1,692,000. In 5 short years, with a deal every month, you’ll have $2.82 Million! You could have your retirement fully funded whether you are ready to retire or not.
These numbers are all driven by percentages. The minimum
example is based on a $325,000 house with a 3% lease option
fee. Higher selling prices mean higher lease option fees, higher
rents with higher spreads, and a higher payout at the time of
sale.
If median-priced houses in your part of the country are selling
for $425,000, you will earn more than those minimum
numbers! $650,000 houses will double the numbers… and so
on.
A word of caution: Because higher profits are driven by percentages, it can be tempting to go after high-end houses. The problem becomes that you will not get consistent results because there are fewer sellers and fewer buyers in the high-end market. Consistent results, consistent profits, and consistent income come by focusing on the sweet spot. That is the part of the market close to the
median sale price. This is the part of the market with the most activity — with the most sellers, the most buyers, and where the most mortgages are being approved for first time tenant-buyers.
So, what else do you need to know about control without ownership using lease options?…
Money isn’t bad but there is much more to life than working for money that you don’t have the time to enjoy. A key principle that I apply to my sandwich lease option business is “control without ownership.” That means much less responsibility. Less responsibility gives you more time to enjoy life. You achieve less responsibility by sharing it with the other people in the deals. These people are the property owner who needs to solve a problem and the soon-to-be homeowner who has skin in the game.
Beyond the monetary payday, you want to enjoy emotional paydays. Most of us call emotional paydays “happiness.” It’s when we do things that make us feel good. It’s when we are proud to live a life based on principles. We all want this but few of us make it happen in any meaningful way. We always say that happiness will come someday.
We all define happiness differently. Maybe it's lots of material things that cause us to work harder. Maybe it’s helping family but that often requires money. Maybe it’s helping people who are struggling — these can be the sellers and buyers in sandwich lease options. Maybe it is all of these. I find that sandwich lease options are the answer to all of this and much… much more.
Once you know how to make the money, you want to start thinking about what to do with the rest of your life. Don’t live by default. Living by default is what happens when someone else defines your life mission and life goals.
Have you ever tried to define how much money you need or want? A good definition is having more money than you need. It’s completely your choice how much is enough. You could do 1 or 2 lease option deals in January and February and be set for the entire year. Or you can do 8, 9, 10 deals if you want more money. Any way you do it, you won’t work very hard — but you will trade your time for money.
This gives you the ability to experience life on your terms.
The decision is yours to work as little or as much as you decide, but only after you have all of the tools are you able to take control without ownership using sandwich lease options…
1. Advanced strategies for Buying and Selling with Lease Options.
2. You’re Wealth Building Arsenal.
3. Cooperative Lease Options.
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.
To your success,
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.
Nothing that I know of has proven more successful for beginning real estate investors than Cooperative Lease Options (AKA — Wholesaling for Quick and Easy Cash). By simply harnessing the power of Cooperative Lease Options, you’ll immediately begin making large 5-figure deposits into your bank account in about a week. I can also show you how to make more money with sandwich lease options, but nothing beats the Cooperative Lease Option for a fast payday and getting started in the lease option business.
There are many reasons to start with cooperative lease options. You might already know that I prefer no-cost/low-cost deals with
almost no risk and that is exactly what these are. In fact, these even stay away from one of the remaining small risks associated with sandwich lease options. That’s the very small risk that the tenant-buyer won’t complete the purchase.
The cooperative lease option is about you bringing together the seller and tenant-buyer and then stepping out of the deal. If the tenant-buyer doesn’t complete the purchase, you are already out of the deal with no remaining risk, although you might provide your knowledge to find a way so the sale can go to the closing table.
And…
Here are more (of many) reasons why a cooperative lease option can be the
right tool for the right deal.
1. When you (the investor) are just getting started and could use a quick deal
generating fast cash.
2. When you have several sandwich lease options under contract generating
monthly rental income (say $400 per house, per month) but it will be a few
months before a tenant-buyer closes a purchase to generate a bigger payday
for you.
3. You have a possible deal that will generate a decent purchase option fee for
you but there really isn’t much equity (big payday) for you to earn by
holding the rental contract for a few years.
The course comes with every master contract that you will need. To get off to a great start, I encourage and show students how to convert the master contracts that I provide into your own custom master contracts that you will use again and again to save you time when working on every cooperative lease option deal.
It’s as simple as creating a master contract folder on your computer where you fill out the contracts that come with the course with your own individual information. Typically, this includes your own name, the name of your LLC, your state, and your county. You fill this in once on your own masters and keep the masters separate from the contracts you fill out for each unique deal.
After that, each time you have a cooperative lease option deal, you only need to fill in the specifics for that deal. Those are things like the date, the seller’s name, the address of the property, and of course the dollar amount. Quick and easy — it can even be done while you are meeting with the seller or tenant-buyer.
Here is the quick low down of what Wholesaling Lease Options are all about.
1. Find a motivated seller who wants to sell their house on a Lease Option.
2. Get the property under an “Option To Purchase” contract.
3. Find a qualified tenant-buyer who has a good down payment and has a good
chance to get a mortgage in 12 – 18 months.
4. Sign the Lease Option paperwork with the tenant-buyer.
5. Assign the Lease Option documents back to the seller.
6. Keep the Option Fee and give the seller the first month’s rent.
7. Put the tenant-buyer in a credit repair program with a mortgage broker.
8. Deposit your money and move on to the next cash deal!
In a few short hours, anyone can easily do 1-3 of these deals a month. Imagine what you could do with an extra $5,000 – $12,000 in “Hip Pocket Cash” every month!
From your master contract folder, you make a copy of the provided checklist that goes into a new folder set up specifically for the property you are writing a deal for. (Tip: I typically title the folder as the address of the property.) You want to start with the checklist because it generally lists the tasks in the sequence that you want to complete them. There might be minor changes in the sequencing for a specific deal, but the checklist provides a very useful guide throughout the entire process.
Here are a few highlights from the checklist:
At the top of the checklist, type in the house address so that you always know which deal this checklist applies to.
From beginning to end, the process is remarkably simple. This is nothing more than creative investing that most people just don’t think of. First, you use one of the many methods I share to find a seller in a bit of a pickle that needs some help with this type of creative selling.
Then you explain in a general way how a lease with an option to purchase works. What’s important here is that you gain some control over the property. You do this by signing a purchase option agreement between you and the seller for some “consideration.” When it comes to a cooperative lease option, you want the option fee you pay the seller to be very small. You probably want to start negotiating for as little as $10 to $100. This is important because your money comes from a much higher option fee that you collect from the tenant-buyer. If you pay too much to the seller, the tenant-buyer fee will only be reimbursing you rather than earning you a decent fee in exchange for your services and knowledge of how to put the deal together.
The purchase price you have under contract in a cooperative lease option is the same price you offer the tenant-buyer. What you want from the tenant-buyer is the full “traditional” option fee. A traditional option fee is between 2% and 5% of the purchase price. At 3% on a $250,000 purchase price, the option fee you collect is $7,500. Once you collect the traditional option fee, you “flip” your purchase option agreement (you paid $100) to the tenant-buyer. At this point, you step out of the deal. It becomes the responsibility of the seller and the buyer to close the deal at some future date before the option period expires.
To your success,
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.
Why do so many people want to get into real estate investing? My decades of experience tell me that it is a combination of being in full control to enjoy your life while earning an amazingly comfortable living at the same time! In fact, many sandwich lease option investors take full control to become wealthy and happy.
I want you to learn my powerful strategy that is responsible for me being able to oversee more than 3,000 deals while living the life of my dreams.
Ready to start your sandwich lease option journey? Grab my Lease Option Swipe File to see how I land creative real estate deals in minutes. As soon as you download the script, it only takes about 10 minutes to get started. It’s 100% free and the sellers will beg you to help them! It’s a behind-the-scenes live recording of me making real-world phone calls to local real estate agents. You’ll hear exactly how and what to say to get the deal you want! (HINT: listen carefully to the specific language I use…)
This is a time-tested and proven sandwich lease option script that you can just read back to the seller. The script works 36% of the time so use it exactly as it is! Imagine, your every 4th conversation may finally be a profit in your pocket!
Don’t have any capital? You can still get into real estate by structuring these deals between sellers and tenant buyers. Lease options are one of the easiest and fastest ways to become an investor without holding any mortgages.
Sandwich lease options change your life for the better and forever…
As a society, Americans work too much. Most Americans live to make money instead of making money to live. IT DOESN’T HAVE TO BE THAT WAY.
You want to get into lease option investing because:
You don’t want money to be the master of your life.
You’ll never have to work too much.
You’ll no longer be too busy to enjoy life.
You will no longer always be stressed out.
You won’t have to work at a job that you don’t like.
The good times in your life didn’t come when you were making money. Your good times were playing sports in high school, your college days, fishing and playing ball with your dad, taking a long-deserved vacation, and the list goes on… The list of good times is long but working longer hours is not on it.
Prosperity is having enough money to live the way you want to live!
You might find it hard to believe that I’m saying this, but real estate doesn’t have to be your passion. Your passion should be living your life and real estate investing is the toolbox you use to feed your passion for life. With a toolbox full of sharp tools, you very quickly become efficient and effective. You make money when and how you want to.
You need to get out of the corporate world just so that you have the time to determine what you want from your life. Real estate provides the money to do what you want. Thousands of sandwich lease option investors are not wrong!
You can get away from the corporate world by creating multiple income streams. Multiple income streams give you the financial security that you will never find with a single corporate paycheck.
One sandwich lease option provides three Paydays – one of those Paydays is a steady income stream from the rent spread.
The road to a wealth legacy is paved using the money you earn from lease options to invest in additional assets that give you more passive income streams. If real estate is not your preferred choice for building wealth, it can at least provide fast and reliable capital to move you into what you truly want to be doing.
Better is having the right strategy that delivers what you want from the amount of work that you want to do. These courses were put together with the thought process of delivering what you need to be doing so that you can work the amount of time that you want to be working. You can do as little or as much as you decide is right for you. What happens is doors will open that you never even imagined were there before.
You may not even know what real freedom is until you taste it. What you need is a plan to at least experience freedom and then work towards total freedom. You don’t want to try inventing a new version of the wheel when a wheel proven to go around and around while churning out money is already at your fingertips.
Freedom only requires having a strategy that fits your vision for life. I have taken countless courses. I took the best strategies that supported my vision and crafted them into what works best for my vision and me.
You may not, and probably will not, use everything that you learn here. You will probably modify it to best fit your needs and vision. But you will be starting with what you can be sure is the best thought-out and complete strategy for sandwich lease options. These are proven techniques that my students have been using for years and decades. These tools have been successful time and time again. There is a lot here that will become the foundation of your investing strategy. These are the tools and techniques that will support your vision for life.
Your freedom begins by using what you want and when you want.
Use the tools as little or as much as your vision calls for.
Believe it or not, you will learn to say “NO” to some investment proposals. I often phrase this differently by saying “NEXT.” I do that because there is always, always, another deal in the pipeline, when the deal you are looking at this moment isn’t the right deal for you. THAT’S FREEDOM. Learning when and how to say “NO” and “NEXT” is key to gaining your freedom. It also means having the freedom to follow up 3 or 4 months later when your offer is still the best solution to solve the prospect’s problem. It is always a WIN-WIN-WIN solution!
Your Freedom is secured by always having sandwich lease option deals in your pipeline!
1. Advanced strategies for Buying and Selling with Lease Options.
2. Your Wealth Building Arsenal.
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.
To your Success,
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 bullish millennial real estate market continues roaring forward. Millennials aren’t afraid to break barriers. At almost 80 million strong, they change rules and push boundaries. Recent statistics show millennials currently make up the lion’s share of homebuyers (43%) in the U.S. That is nearly half of all homebuyers.
Once known as the “rent generation,” millennials have proven to be savvy buyers who are quite nimble in their quest to become homeowners. However, they are saddled with student debt, need to build their credit, and save for a down payment – buying a first home
is a big challenge for millennials!
It’s been a long financial struggle for millennials trying to buy a home. Most came out of school at the time of the Great Recession that started in 2008 and didn’t fully recover until 2012. Next came the pandemic and more recently the seller’s real estate market.
After years and years of this being a seller’s market, there are still very few entry-level houses available for sale. This is very much about the millennial generation… the most active demographic in today’s real estate market. Millennials now outnumber baby boomers by almost 10 million people. And the millennials are much more active in the real estate market than baby boomers who are going into retirement.
The few entry-level houses for sale out there are attracting the most qualified buyers. These are millennial buyers who are already preapproved for a mortgage. But there is an even larger pool of millennials who would be buyers if they had a little help qualifying for a mortgage. Buyers who are eager to pay top dollar if someone will give them a chance.
Rent to own homes is all about helping these people qualify for a mortgage. These are the same people that house flippers are ignoring. And landlords raise the rent every year, which further motivates these people to want to buy a home. Offering millennials exactly what they want is the niche that you fill with sandwich lease options (AKA Rent to Own Homes).
Millions of millennials want to be served by this niche but very few investors are filling the need….
There are many reasons why rent to own homes is a powerful tool in this strong seller’s market. These reasons apply to sellers, buyers, and investors alike. Near, or at the top of the list is that investors do better when they have a niche that they serve. A niche is more refined than just having an investing strategy. Buying and “flipping houses” is a strategy where countless investors compete (but only a few succeed). Being a landlord is the most common “buy and hold” strategy. Again, a successful strategy but a very competitive strategy that doesn’t offer millennials what they want nor investors much of a way to separate themselves from the rest of the investing crowd.
Niche investing is about becoming an expert in an area where there are very few competitors but where buyers are willingly pay top dollar for the benefit of what an expert offers.
Consider where millennials are currently at in their lives (ages 23 to 41). When these people graduated from college and high school, it was the middle of the Great Recession. They faced two enormous financial hurdles. First, they could not find decent-paying jobs. Second, they were carrying the burden of college debt. Little wonder this generation has struggled to save a down payment and qualify for a mortgage. Yet, this is the biggest demographic in today’s real estate market and will remain so for many years to come.
In their early adult years, these people preferred living in the inner city near entertainment venues and restaurants. Today, they have matured and many finally have good-paying careers. Many (if not most) are starting families and becoming more financially responsible. Building equity in a single-family home in the suburbs is now more appealing than sharing an apartment with roommates and hanging out at a trendy bar on the street corner. Millennials are your target demographic for the rent to own homes niche!
What you have today are tens of millions of millennials living in city apartments where rents are increasing faster than homeowner equity. They now have good jobs but very little savings and haven’t qualified for a mortgage. They no longer want to pay high rents to landlords — so that living arrangement has no more appeal. And the few single-family homes on the market are being scooped up by the scarce millennials who do qualify for a mortgage.
Into the picture you step as the “Rent to Own Homes” niche expert with a solution to all their problems. Solutions these millennials are willing to pay top dollar for. You can get them into a single-family home out in the suburbs. For the cost of a rental deposit on a bigger apartment, you collect the option fee on a lease with an option to purchase. This works towards both the down payment they need and converts into the homeowner equity they want — as soon as they complete the purchase. You offer them a way to improve their credit score to qualify for a mortgage. And it comes with a white-picket-fence-home to raise their family.
Who would have thought that “Rent to Own Homes” offers all of the solutions to the largest demographic group during the tight real estate market of the 2020s?… Only a Niche Expert!
1. You learn the basics: Investing In Real Estate With Lease Options.
2. Next are the details: Buying and Selling with Lease Options.
3. Create your Wealth Building Arsenal.
4. Personalized Coaching.
Being a top-performing expert in any niche means knowing all the available
options. As you uncover unique situations, you need other specialized tools and
methods that include:
5. Cooperative Lease Options.
6. Get the Deed “Subject To.”
7. Working with Realtors.
Lease options are definitely my students and my own most profitable and least
risky investing strategy. Real estate investing is all about finding creative
solutions that work for you and others. What you need to do now is TAKE
ACTION!
To Your Success,
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.