If you’re having trouble coming up with investment funds or if your credit isn’t good enough to secure a first mortgage on a property, then sandwich lease options are for you. Even if you have funds or credit, why would you want to put them at risk when you can make more money without risk?
Every real estate investor should prefer risk-free and debt-free investing!
Better Than Investing with Other People’s Money
A lot of investors will tell you to invest using other people’s money. But in all situations, other than sandwich lease options, other people’s money involves some kind of debt. It could be debt through a loan, or it could be sharing profits with a money partner in exchange for bringing money to the deal.
Sandwich lease options are not like either of those scenarios.
Sandwich lease options don’t require you to take on debt.
Sandwich lease options don’t require risk.
Sandwich lease options earn as much or more than high debt and high risk investments.
The investment world is full of get-rich-fast schemes that involve borrowing every cent you can get your hands on. Heck, that’s how I got started. About the time I got out of college, I began buying rental houses using a long string of credit cards. I made it work, but the stress of juggling all that debt was unbearable. I got out of debt financing my investments as soon as I learned about sandwich lease options. Along the way, I saw a lot of other people crash and burn under that kind of debt. Like the hare who lost the race to the tortoise in Aesop’s classic fable, what’s the point of being fast if you don’t reach the goal you set out for in the first place?
You will put fast cash in your pocket and be debt-free with sandwich lease Options!
Your First Sandwich Lease Option is the Proof in the Pudding
You can skip the embarrassing and time-consuming step of going to a bank to beg for a loan even though you have no collateral, you have no experience, and you have no credit history. We both know that their answer is going to be NO.
You must have money to borrow money anyway. So, lets’ look at how you can start making money that you won’t have to share with the bank or a partner. Money that you get to keep starting on day 1.
Find a person that wants to sell or rent their house. You offer to rent the house today and buy it in the future. You want an option to buy it but not an obligation to buy it (no risk). People with vacant houses can be extremely interested in this because it pays their mortgage for them. The sandwich lease option explains how to get a sale price for less than you’ll be able to sell the house for. That’s where part of your profit comes from.
Lets’ say that you take an option to buy the house for $200,000 and sell it to someone else for $235,000 in a year or a little longer. Right there, you’ve built in a $35,000 profit for yourself without taking on any risk or debt. You also agree to rent it for $1,000 until you buy it.
You bring in someone that wants to buy a home but can’t qualify for a mortgage for a few more months or a year. This is a person who wants to live in a nice house today and buy it as soon as they qualify (lots of people want this). They know they can pay the $235,000 as soon as they qualify for the mortgage. Since you will let them live there today, they are happy to pay $1,300 a month until they buy the home.
Here are more of the details. You will pay an option fee to the seller for the exclusive right to buy the house in the future for $200,000. Your buyer (the tenant-buyer) will also pay you an option fee for the exclusive right to buy the house from you in the future for $235,000.
Don’t go to the bank asking to borrow the option fee that you owe. Instead, collect the option fee that the tenant-buyer owes you first. Use that to pay what you owe the seller. Be a good financial manager. Collect a $12,000 (5%) fee from the tenant-buyer and agree to pay the seller $4,000 (2%). You pocket the difference as your first payday ($8,000). There you have it – your first payday without debt and without risk.
Next, you collect the difference between what you pay in rent to the seller and what you collect from the tenant-buyer. In the example, that is $300 every month until the tenant-buyer completes the purchase. Boom – another $3,600 in your pocket if it takes a year to close the deal. And when the deal closes, you collect the $35,000 difference between what you owe the seller and what the tenant-buyer owes you.
A total of $46,600 profit that is debt-free and without risk using a sandwich lease option. That’s the proof in the pudding!
Sandwich Lease Options are a Debt-Free Snowball Plan to Your Financial Freedom
You could rinse and repeat a sandwich lease option whenever you need to make some easy money. OR… you can use the proof in the pudding to snowball this debt-free investing method into your financial freedom for life.
That one sandwich lease option deal delivered $8,000 to you, the first week from the option fee and another $300 every month until the big payday of $35,000 in about a year. That should be all the motivation that you need to put in a few hours a week to put together one deal a week.
Every week and every month, your paydays will snowball into bigger and bigger paydays. $200,000 or $300,000 each year is reasonable to expect if you stay with it just a few hours each month.
“Do It All” Debt-Free with Sandwich Lease Options
The key to a life of happiness is for you to have financial freedom and be debt-free! Debt makes you a servant to the banks. You become more focused on maintaining good credit than you focus on life itself. Debt means you have to work a lot to make the payments. You are doing the work but earning money for the banks. You always put money first before anything else.
Central to borrowing for real estate investments is that you (an investor) have to continue paying the bank even if the investment isn’t earning any money. If the investment fails, the bank gets its money back through foreclosure. You walk away exhausted from too much work and all you get in return is to have your credit rating wiped out.
Of course, you don’t have to ruin your credit to earn money with sandwich lease options. Debt and credit ratings just become much less important than the other things going on in your life. You can “do it all” when you invest debt-free because you don’t need to think about owing money to the bank and how much work you need to do to make the next payment. You just don’t have to be dependent on banks for anything. You are in control without having to be responsible for following the rules of the bank.
Sandwich lease options are debt-free investments.
Start today so you can begin collecting the first of many debt-free paydays that bring FINANCIAL FREEDOM to the rest of your life!
- Your Wealth Building Arsenal.
- Advanced strategies for Buying and Selling with Lease Options.
- Investing In Real Estate with Lease Options.
- Add Personalized Coaching.
- Cooperative Lease Options.
- 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.
What did you think of this article? Please leave a comment below.