Sandwich Lease Option FAQ for Serious Investors

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Sandwich lease option investors often turn first to the ‘For Sale By Owner’ section of the classified ads when looking for a sandwich lease option seller. However, a FSBO probably shouldn’t be your first choice if you are a serious investor. The better choice is often counterintuitive to many sandwich lease option investors…

These FAQs should be of interest to everyone (investors, sellers, and buyers).

Hello to All Serious Sandwich Lease Option Investors

I’ve been involved with lease option real estate investing (and other profitable techniques) for so long that it’s mentally healthy for me to go back over the basics on a regular basis. That is one of the biggest reasons I so much enjoy sharing sandwich lease option FAQ with people. That and because I just plain like working with people.

Every time I write lease option FAQs, do a Webinar, a Bootcamp, or answer personal questions I get a flash from the past about how confused I was in my early weeks and months as a real estate investor. And I recall how thrilled I was when I first came across lease option investing where I could sign a couple of pieces of paper to control a property with little or no money of my own. All without taking out a bank loan or using my own cash. The reason I do sandwich lease option FAQ is so that people like you can learn about the advantages and benefits while at the same time expanding the education and skills that you’ll draw on for decades to come, much in the same way as I do from the questions that you ask.

To your financial freedom through investing,



One of My Best Sandwich Lease Option Solutions for Investors

FAQ #1: As a highly experienced and successful lease option investor, what is one of your favorite techniques to find sandwich lease option sellers?

Answer #1: The counter-intuitive but better place to look for sellers is in the ‘For Rent’ section of the classifieds. What you are looking for are primarily two types of property owners. One is the disgruntled landlord that is again dealing with a vacant rental house. This landlord is going another month or two without rental income. Also, he or she quite possibly just chucked-out another pile of money to make repairs and clean up after another deadbeat renter who stopped paying rent. The thought of a sandwich lease option delivering a steady monthly rent check for the next year or two from a highly qualified tenant-buyer is very appealing. Following that up with a high purchase offer can be even more appealing.

Lease options especially appeal to older landlords such as baby boomers who are now well into their retirement years.

The second person in the ‘For Rent’ section that a sandwich lease option appeals to is the financially at-risk home seller. This is typically a person that recently listed the house for sale but didn’t get the deal done before they became strapped for cash. Their house is sitting vacant and doing nothing other than costing them money every month. In desperation, these people become reluctant landlords to bring in rental income. But they would much rather immediately and permanently solve their financial problem by generating an income from the vacant house starting next week. Knowing they will also get all their cash from a sale in about a year is another big plus for these reluctant landlords. These people are everywhere. Some are recently married couples that combined two households into one. Others recently bought a bigger house, and their first house is now vacant but with a mortgage due every month. Others recently took a job in a different town, etc., etc., etc.

All are techniques for spotting reluctant landlord ads that make finding sandwich lease option houses easy!

FAQ When Selling a Sandwich Lease House

FAQ #2: Why would I choose to do a lease option instead of doing something like flipping houses for cash?

Answer #2: That depends on your circumstances but sandwich lease options definitely offer you (as the investor) more options. First, you can control the house for little or no money out of your pocket without the responsibilities of owning it. Second, while the national market is currently a seller’s market, it isn’t that way everywhere. If yours is a slower market, the lease option opens your market to many more potential buyers. Same thing if your market is highly active – sandwich lease option buyers pay top price. Another good reason is that many investors would like to collect monthly rent for a year or more and still have a highly motivated buyer in the not-too-distant future.

FAQ #3: A sandwich lease option seems like a complicated process. Where do I start?

Answer #3: Start by deciding the terms you want to offer the buyer. Decide how long you want the purchase option to be available. The most common is 18 months to 2 years but it can be longer. Then decide how much to charge for a nonrefundable purchase option fee. Typically, it’s between 3% and 5% of the purchase price. Check your local market to see if a standard exists. You also want to begin considering what maintenance responsibilities you want the tenant to assume that go beyond a traditional lease. Now, you know the terms you want with a seller.

FAQ #4: What’s the next step in a lease option?

Answer #4: As the investor, you have several options to consider. Even before you have a buyer ready to sign the lease option, you should create a draft of the purchase option agreement. You want a win-win agreement, which means the buyer will have some say in the final contract. However, a draft goes a long way towards helping the buyer understand how the process works. Along with the course materials, I recommend that you have a real estate attorney knowledgeable in lease options review your contracts. This is particularly important with your first several lease options and after any change in regulations.

I encourage you to take full advantage of the all resources I’ve included at the end of this article.

FAQ When Buying a Sandwich Lease House

FAQ #5: Finding a sandwich lease option home baffles me, where do I start?

Answer #5: Finding a lease option purchase starts with a search for available houses. One way is to begin your search by asking a real estate agent to review the MLS for possibilities. Also, look at your local craigslist and other local periodic publications with a real estate section. You can also find any house for sale and make a lease option purchase offer.

FAQ #6: When doing my first sandwich lease option purchase agreement, how do I know if I’m getting it right?

Answer #6: The course materials have all the processes, forms, and templates that you need. But you should also have a local real estate attorney review any contract before signing. Just as importantly, you can use my tips for negotiating any lease option purchase agreement to include the terms that you prefer. The lease option purchase agreement is a very flexible contract that should be written to satisfy the investor, the buyer, and the seller (WIN-WIN-WIN).

The sandwich lease option FAQ covered above only begins demonstrating the many possibilities for investors, buyers, and sellers willing to think outside the box.

You will have more questions. To learn everything, you’ll want to read all the useful information that I provide.

Please take advantage of it today.

  1. Investing In Real Estate with Lease Options.
  2. Advanced strategies for Buying and Selling with Lease Options.
  3. You’re Wealth Building Arsenal.
  4. Cooperative Lease Options.
  5. Working with Realtors.
  6. Add Personalized Coaching.
  7. Expand to Get the Deed “Subject To.”

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.

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