My favorite success story for unlocking the secrets to sandwich lease options is a 14-year-old boy who discovered success in less than one day! His example clearly shows how opening your mind to using less conventional methods sets you above the rest of the crowd. His amazing accomplishment took no more than the very basics – making a few telephone calls until he got a “YES, I’m interested in what a sandwich lease option can do for me.”
If a 14-year old boy can unlock the secrets to sandwich lease options, so can you!
Here is what the young man did using the basics of sandwich lease options. John (the 14-year-old) attended one of my seminars a few years ago with his father. The day after the seminar, John started making calls and following the proven script that has worked for many people. Quickly, he had a “Yes, I’m interested.”
Because he was only 14, he couldn’t actually enter into a sandwich lease option contract. What he did is sell his lead to another investor in the local investment group for $500. All for less than 2 hours of his time. That is the fastest and easiest “No Money Down” deal that I’ve heard of.
Anyone can succeed with sandwich lease options!
When John sold the contract to another investor, it was a classic example of a Cooperative Lease Option (although John didn’t know it at the time).
How to Make an Extra $5,000 this Month with a Cooperative Lease Option
As you already learned from John, a cooperative lease option is a great way to get started with lease options. It won’t earn you $25,000 or more the way a full sandwich lease option will, but it puts fast cash in your pocket until you do put a sandwich lease option in place. For many investors, this is the first step to unlocking all of the lease option secrets.
The basic secret is taking the meat out of the sandwich. In my version, the meat is the purchase option fee. This is the money that the buyer will put down for the right to purchase the house. Except, you don’t have to find the buyer and you don’t have to manage the deal from now until the buyer completes the purchase. All you do for that quick $5,000 is find the seller and flip the sandwich lease option to another investor. Just as John did when he immediately sold his lead to another investor.
The big difference between what John did and what you’ll do with a cooperative lease option is that John only sold the lead to a seller for $500. To earn the full $5,000, you need to put the seller under contract and then sell the sandwich lease option contract to another investor. You are the buyer and you are “assigning” your contract to a buyer for a fee from them to buy your contract. You can be in and out of the deal in a week or less.
Cooperative Lease Options teach you the front end of the full sandwich lease option process for the least amount of work and risk.
Big Money by Staying in the Sandwich Lease Option
As soon as you complete a cooperative lease option, you’re ready to move on to the big money that comes from staying in the deal from beginning to end. What makes sandwich lease options so attractive is that you can usually offer the seller the full retail price for the house. That means you are completely competitive with every buyer in the local real estate market. You are not limited to looking for the rare deep discount property that occasionally comes on the market and every investor in town is looking for.
Offering full price means you are considering every cute white-picket-fence with a yard on the market. These are the same houses that every rent-to-own buyer wants. When you offer these buyers the ability to rent-to-own, they are eager to pay top dollar for their future home.
In a market that is appreciating in value every month, there is plenty of profit to be made with a sandwich lease option scheduled to be completed 18 months or 2 years down the road. But it gets much better because you collect the first of your three paydays as soon as the buyer signs the option agreement. Then you collect many more paydays every month in the form of the rent spread between what you pay the seller and collect from the tenant-buyer. And then your biggest payday comes when the tenant-buyer completes the purchase in 18 months or 2 years (after you’ve been collecting monthly rent checks all along).
Sandwich lease options are all about the terms of the deal. Terms include the price, amount down, length of time to pay, monthly payment, monthly credits, and other negotiated items with the seller. It’s not very much about the price that you pay the seller to get into a sandwich lease option.
It’s the terms that make it a WIN-WIN-WIN for the seller, you, and the tenant-buyer.
Step Up Your Game By Working With Realtors®
Working with Realtors® is about helping Realtors® and helping yourself at the same time. Of course, you’re also helping the sellers and buyers. Working with Realtors® is now a 4-way WIN-WIN-WIN-WIN, which is even better than a 3-way WIN.
The big secret is that you are not asking Realtors® to change their best potential sale into a sandwich lease option. Instead, you are offering them a way to sell their most difficult listings in a way that everyone wins.
The place you begin is by understanding that Realtors® aren’t trained in this unique selling technique. They are trained in the traditional ‘Retail Market.’ Your action is helping Realtors® understand lease options. You do this by using several methods. First, you send a letter to a listing agent explaining the concept. Second, you offer to show a presentation going into detail about how your services will help both the Realtor® and his/her clients with a house that isn’t flying off the market. Third, you continuously remind Realtors® that your services are available when they do come across those difficult houses.
Your best opportunity to work with a Realtor® comes the moment a seller says to them, “If my home doesn’t sell soon I might have to RENT it!”
Subject to Deals Complete Your Toolbox
“Subject-To” real estate investing is yet another way of acquiring ownership of properties with little or NO money down! Sometimes you may even be able to receive money when you buy, and have the Seller thank you in the process!
As full disclosure, these properties can be more difficult to find because these are in the category of “distressed properties” – meaning the seller is desperately looking for a solution to their problem. Although these don’t come along too often, you want “Subject To” in your toolbox when the situation makes it the best answer for helping a seller out of a bad situation.
What’s involved is a transfer of ownership at closing, but the mortgage stays in place. You buy the property “Subject-To” the existing financing. The loan stays in the seller’s name but you have full ownership of the property.
When you have full ownership, you can do whatever you want with the property. You can lease it, assign it, lease option it, or sell it outright.
“Subject-To” typically works best when the seller has gotten behind on the payments and has no way of getting current again. They just need out of the property to keep it from going to foreclosure and ruining their credit rating. There are many reasons this happens, including illness, divorce, any kind of “bad debt,” loss of a job, or being financially strapped.
Just like all of the methods that have been discussed, under the right circumstances, you are not a villain trying to cheat people down on their luck. You’re really a knight in shining armor who is offering the only hope that they have of getting out of a bad situation.
Unlocking all of the secrets to sandwich lease options comes together in the WEALTH BUILDING ARSENAL!
Now is your opportunity to decide how you want to get started and how much you want to start earning! You can begin with a Cooperative Lease Option or you can jump all the way in with the Wealth Building Arsenal or anything 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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