I do enjoy sharing the nuances and details about sandwich lease options. But there are times when I need to back up a little and start from the beginning for readers who are new and excited about a career with the tremendous opportunities that sandwich leas options provide today, tomorrow, and every day!
Truth be told, today you shouldn’t have any out-of-pocket expenses with sandwich lease options.
What is a Sandwich Lease Option and Where to Start
Sandwich lease options are a unique and highly profitable niche in the real estate world. An easy way to think of a sandwich lease is as a sublease. You lease the home from the owner and sublease it to a tenant-buyer who signs a contract for an option to purchase the home. You also have a contract with the owner giving you the option to purchase the home. But very importantly, you don’t have to buy the home unless your tenant-buyer completes the purchase transaction with you.
Timing the deal is important – NOT how much money you have to invest!
Sandwich lease options are about putting the deal together in a sequence that allows you to earn a very good fee without investing or risking your own money. This is why it is known as a low or no cost investing strategy. I want to emphasize to those just getting started, that you DO NOT have to own property to profit from it. Lease Options allow you to control and sell property for a profit – without owning it!
You earn the meat in the middle of the sandwich. The seller of the property is one of the pieces of bread and the tenant-buyer is the other piece of bread. As a sandwich lease option investor, you are the meat and lettuce in the middle who has all of the details and paperwork needed to put the deal together.
You create an option to purchase the home from the seller for less than you will sell it to the tenant-buyer. That gives you one of three paydays (the biggest payday) when the tenant-buyer completes the purchase.
You will also collect a higher rent from the tenant-buyer than you pay to the seller during the lease period. This is called the “rent spread” and is your second of three paydays. You collect this payday every month until the tenant-buyer completes the purchase.
The “rent spread” is a stream of paydays that continues for many months.
Your other payday is actually the very first payday that you collect as soon as the tenant-buyer signs the paperwork for a lease with the option to purchase the house that you are leasing from the seller. This is the lease option fee and is a hefty payday… typically $7,000. I teach you how to collect this on the same day that you lease the property from the owner so that nothing comes out of your pocket… which is why this is a no or low cost investment strategy.
The good news is there are plenty of tenant-buyers who want a sandwich lease option.
Let’s recap the three paydays that you earn as a sandwich lease option investor:
- The sandwich lease option fee right from the beginning.
- The rent spread as an ongoing income stream.
- Purchase profit when the tenant-buyer completes the final transaction.
Sandwich lease options are about controlling the property without the hassles and costs of owning the property.
Most people just getting started with sandwich lease options will have no trouble following the detailed steps in the book. However, there are people who prefer wading in rather than diving in… for those wanting to dip a toe first, I strongly suggest beginning with the even lower risk Cooperative Lease Option….
Getting Started with the Cooperative Lease Option
All you need is a reasonable expectation that the property is worth more than you are putting it under contract for with the owner.
Cooperative Lease Options Have Almost NO Barriers to Getting Started.
The larger the difference between the retail value and your contract value, the more you’ll put into your bank account by flipping cooperative lease options. The difference between a cooperative lease option and a sandwich lease option is that you only get paid once with the cooperative lease but that is also why it takes less effort and has even less risk.
Both the Cooperative Lease Option and Sandwich Option Take Very Little Time.
The only requirement of a cooperative lease is finding a seller who is interested in using the sandwich lease to sell their house. There are many reasons why sellers want to do this that you’ll discover in both books. However, with the cooperative lease, you put the property under contract and then flip the sandwich lease portion to another investor. You can be in and out of these deals the same day or in a week.
Cooperative lease options are very fast for a very quick payday.
You collect the first payday and the other investor collects the other two paydays. You don’t become a landlord, you don’t manage tenants, and you don’t go through the closing process. It’s a simple contract between you and the other investor who assumes the position in the sandwich lease. In and out in hours or days.
Starting with cooperative lease options makes a natural progression to the more profitable sandwich lease options.
Don’t misunderstand; cooperative lease options are great all by themselves but these also open your world to many other possibilities. One reason lease options make great transition paths is because so little of your time is required to get started while still learning the ropes of sandwich lease options.
So, who wants to be part of your lease options?…..
Now is the Time to Work with Millennials
This is very much about the millennial generation… the most active people in today’s real estate market. Millennials (80 million of them) now outnumber baby boomers by almost 10 million people. And millennials are much more active in the real estate market than baby boomers who are retiring.
The few houses out there for sale are attracting the most qualified buyers. These are millennial buyers who are prequalified for a mortgage. But there is an even larger pool who want to be buyers if they have a little help qualifying for a mortgage. Buyers eager to pay top dollar if someone will give them a chance.
Sandwich lease properties are all about helping these millennials qualify for a mortgage. These are people that house flippers are ignoring. And landlords raise the rent every year, which further motivates renters to become homeowners. Offering millennials exactly what they want is the niche that you fill with both sandwich lease options and cooperative lease options.
Millions of millennials want to be served by this niche and you can fill their needs….
Today is the day when you decide how you want to get started with sandwich lease options and how much you want to start earning. It’s all covered right here. You can begin with a Cooperative Lease Option or jump all the way in with the Wealth Building Arsenal or something in between. What’s important is that you GET STARTED TODAY!
- Cooperative Lease Options.
- Investing In Real Estate with Lease Options.
- Advanced strategies for Buying and Selling with Lease Options.
- You’re Wealth Building Arsenal.
- 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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