Now is the time to get serious about the sandwich lease option investment method because the real estate market is moving in your favor. Over the next few weeks, I’m going to provide information that you can begin using right away to take the first critical steps to get your business up and running in the shortest time possible. Today, you’re going to learn which properties show the most promise for converting into a successful sandwich lease option deal.
I receive a regular stream of emails from people saying they “missed the boat” during the crash of 2008 and the massive rebound that went on for years. I hope that wasn’t you but the good news is another chance is right at your feet, right now! The real estate market is changing, right in front of your eyes. The COVID-19 virus has changed everything. It has changed our social interactions, it has changed our economy, and it is changing our real estate markets.
If you already know the ins, outs, and details of sandwich lease options, you are ahead of the game. If you are just “getting your feet wet,” this is an incredible time for you because you’ll soon be fully prepared to move quickly in this “new market” – right now!
What Makes Sandwich Lease Options So Attractive
There are many many ways that sandwich lease options can work. And most of these are very different from what other investors are doing. For instance, if 15 investors had a chance to purchase a house for $100,000 that had a full market value of $200,000 today, all 15 investors would jump at the chance. On the other hand, if 15 investors had a chance to buy a house for $200,000 today that has a full market value of $200,000, none of the investors would buy the house because there is no money to be made.
But sandwich lease options offer something very different.
So, let’s look at this from the unique perspective of a sandwich lease option. This is how you put that same full market priced house worth $200,000 under contract today and make a profit on it for the next five years – it doesn’t even matter if it appreciates in value to $240,000 or not. So now, all 15 investors have dropped out of the deal because they don’t know how to make that profit when they take an option to buy at near the full market price today but don’t have to exercise (or decline) the option for several years. You could very well make a lot of money in the appreciating value but regardless, you are making a monthly profit on the deal every month until you exercise or decline the option to purchase. Monthly income and appreciated value are two of the three paydays available even when you take an option at or near full market value.
Why Start Any Sandwich Lease Option Deal?
This is how to get started towards making $5K or $10K in 29 days. The learning curve is short and the rewards are both high and fast. You are also helping sellers who are stressing out about a house that is costing them a ton of money every month when their finances are taking a historic hit. At the same time, you’re helping buyers purchase a home for almost nothing down but who will be in a better financial position to take the title to the house a year or so from now when the economy has again found its firm footing. No doubt now is the time for these WIN-WIN-WIN sandwich lease options.
Sandwich lease options are much less dependent on the selling price of the house than any other investment method. It’s much more dependent on the “Terms” of the deal. Terms build in incredible flexibility when it comes to finding these deals. You are not paying “cash” for the house (and taking out a new mortgage is a form of paying cash). You’re not taking ownership of the house. You’re only taking an option to purchase the house at a certain price in the future. It’s the “Terms” that make or break a great sandwich lease option. That’s why you need to look at these deals with completely open eyes and from a completely different perspective than other investing methods.
The Right Motivated Seller
When it isn’t a cash deal, it also doesn’t require credit. Sandwich lease options are about terms, not cash and not credit. But that part is for you as the winner in the middle.
What you also need is a motivated seller that sees how they will be a winner in the deal. Their motivation comes from having equity in the house. Equity is the key to motivating sellers. It’s possible to do deals when the seller doesn’t have equity but then the seller is much less motivated to finish the deal. When they will walk away with nothing, they don’t want to put in the effort to make the deal happen. When the seller doesn’t have equity in the house, I almost always say, “Next.”
Having equity doesn’t mean the seller is not having financial problems. It could very well be that the seller needs to access the equity to fix their financial problem. A house with a lien against it makes a good example. If the seller has a $1,000 lien against the house but won’t come out of the deal with a nickel or two, there is no way to close the deal (transfer the title) without someone paying off the lien. When the seller has equity in the house, they can solve both the lien problem and get out of a house that they no longer want to own. It doesn’t take much equity but equity is the root motivator for almost every seller.
Equity also creates room for negotiating the terms with the seller. When you start negotiating the deal, you seldom know all of the facts. The seller can initially agree to sell to you at a price you want but they might not mention they are four months behind with the mortgage payments. If they have no equity in the house, being behind with payments means they are actually underwater. Being underwater seriously increases the chances that complications will come up later in the deal. The seller isn’t motivated when problems come up; the deal is less likely to close. The same delinquent payment situation with an owner that has equity opens up room to negotiate terms that work for both you as an investor and them as the struggling seller.
Equity = Motivated Seller.
When there is no equity, learn to say “NEXT.”
Smart and successful people take action now. They take action when the time is right. They don’t wait until the field becomes crowded. They lead from the front instead of bringing up the rear as a follower. You can absolutely have a deal put together in 29 days or less. As soon as you know the ropes, you can have a deal started in a couple of hours simply by finding prospective houses. You can have all three parties (seller, yourself, and tenant/buyer) committed to a win-win-win deal in a week and money changing hands in 29 days. You’ll never succeed with sandwich lease options if you don’t make offers.
You offer to control the property – not to own the property.
- Learn the basics: Investing In Real Estate With Lease Options.
- Next are the details: Buying and Selling with Lease Options.
- Create your Wealth Building Arsenal.
- Personalized Coaching.
We’re in a time when unique solutions might be more appropriate. Fortunately, the right tools for these situations are already available:
I can’t wait to hear about your first deal!
By Wendy Patton
For more than 35 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.
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