I hope you are seriously ready to launch your sandwich lease option career today because I’m ready and eager to help you! This is where you discover how easy it is to sign a few pieces of paper to give you control over multiple properties with little or no money of your own, without taking out a bank loan, and without using your credit. Any other investment method requires you to put everything on the line just to control a single property.
It’s the sandwich lease option that gives you control of a dozen or more properties without risk!
Why do I make that bold statement? Because I’ve fine-tuned the art of sandwich lease options while creating multiple courses on the subject, conducting countless webinars, and running several national bootcamps that covered everything over multiple days. There probably isn’t a single question about sandwich lease options that I haven’t already answered.
After all of these years, Sandwich Lease Options Are Still Hot! Why? Because Sandwich lease options are a WIN-WIN-WIN for the seller, the tenant-buyer, and you as the investor.
So, let’s answer those questions that will get you started with sandwich lease options – TODAY!
Question #1: What is the difference for investors between a basic lease option and a sandwich lease option?
Answer #1: The biggest difference is that as the investor in a sandwich lease option, you don’t own the house. The tremendous advantage here is that you have all upside in the deal with no downside. With a basic lease option, you own the house. With a sandwich lease option, the seller continues to own the house throughout the entire process. You coordinate and facilitate the deal without the responsibility of taking title to the property. With almost no risk, you collect a long series of paydays that start on day 1 and continue every month until the tenant-buyer completes the purchase in a year or two.
Question #2: What is the best way to get started?
Answer #2: This can be even better than sandwich lease options. A great place to start is with the Cooperative Lease Option. This is how you put cash in your bank account fast. You simply connect the seller with a lease option buyer in exchange for a handsome portion of the option fee that you deposit in your bank account as soon as they sign the paperwork. The cooperative lease option shows you the basics of the sandwich lease option in a very short time. Making these particularly attractive to beginners is that these deals are often the easiest to find. The drawback is that you do give up the long series of paydays, but you do earn a hefty amount quickly. As your career in sandwich lease options grows, you’ll learn to spot times when the cooperative lease option is a better tool for a particular deal than a sandwich lease option. The cooperative lease option is a tool that you’ll use again and again under some circumstances.
Question #3: What should I know about the sandwich lease option paperwork as a beginner?
Answer #3: That is a big question that I get often and is less complicated than you might think. Let’s begin with how the paperwork is organized and then move into some of the paperwork details. You essentially have two separate but related deals going on. The basic organization is creating two separate files that are kept together in your folder system. In a computer, you create a folder with the street address of the property involved. Inside that folder, you create one subfolder for the seller’s paperwork and another subfolder for the tenant-buyer’s paperwork. This keeps everything for sandwich lease options easy to find when needed.
Inside of each subfolder are three main documents. You can reduce these down to one or two documents. However, three documents simplify everything to keep the intent clear about the three transactions you have with both the seller and the tenant-buyer. These are also your three profit sources or profit points. The three main documents and profit sources are:
- Rental/Lease Agreement
- Sales Agreement
- Option Agreement
So, that’s six different documents. One set is signed by you and the seller and a separate set is be signed by you and the tenant-buyer. The structure of each document will be the same for both versions. However, what is critically important are the dollar amounts, dates, and a few other variables. The difference between those dollar amounts, dates, and variables determines how much profit you make with a sandwich lease option. As simple as some addition and subtraction math.
That’s it, the basic paperwork. All the templates are in the course materials. You just fill in the blanks to get started!
Question #4: The real estate market is tight right now. How do I find sellers with houses suitable for a sandwich lease option?
Answer #4: I get it. There seem to be buyers for every house right now. But the sandwich lease option fills a gap in every real estate market. I’m so confident that you will quickly find a sandwich lease option that I give you the script to start the conversation with sellers. Sellers of all types will benefit from a sandwich lease option in today’s and tomorrow’s market. For instance, burned-out landlords are great candidates in today’s market. Many have struggled to collect the rent during the pandemic and just don’t want the hassles anymore. They are ready to sell, and the sandwich lease option has several benefits for these landlords. They can continue to collect rental income for many more months before collecting the full sales price. Sandwich lease options require little or no maintenance and repairs by the seller. Sellers may want to defer the sale until next year when they fully retire and will have less income – these sellers will owe much less in taxes after retiring. There are always people going through a divorce who need time to work out the sale while neither of them lives in the house. Other people need a big chunk of money next week that a sandwich lease option delivers instead of waiting months to get to a closing table. There will always be sellers who benefit from a sandwich lease option.
You will have the solutions that they are looking for. Starting with the fact that tenant-buyers almost guarantee that there will not be any tenant turnover or vacancy (and you guarantee the rent). These are the highest caliber tenants because of the screening you do and the professional program you use to qualify them to buy. The tenant-buyer makes a serious commitment with the option fee that is credited to their down payment. They will have already proved they have enough income and a debt-to-income ratio close to qualifying for a mortgage. You will do a background check and screen their rental history. Beyond the tenant-buyer’s financial investment, your program has a lot of other incentives to motivate the buyer to complete the deal.
When sellers have problems, sandwich lease options have solutions!
One tenant-buyer, one sale, and done. Not even close to a typical tenant-landlord arrangement!
Question #5: How do I negotiate the price that I offer the seller?
Answer #5: I love this question because the answer is surprisingly powerful. You offer the seller the maximum price for the house! You want to offer them the full appraised value. An effective way to start this conversation is by asking them how much they want for the house. You can start by telling them that you might be able to give them even more than they are asking because the seller probably gives you a competitive price that is less than the appraised value. You can’t tell them that you’ll definitively give them what they are asking but you can tell them that you’ll do a market analysis and will offer what the analysis says the house is worth. Remember, your tenant-buyers are willing to pay top dollar for a lease-to-own opportunity. What the house appraises for today is expected to go up between now and when the buyer completes the purchase. You’ll sell it for more than it is worth today. It’s another win-win-win.
Offering them what they want (or more) also reduces their resistance to your fee. It can make your fee no-cost to them. You are not negotiating a rock bottom price. You are offering high value to the seller. But be sure that you disclose that the full price does include your fee. If the house sells for $240,000, the seller will net $215,000 or something similar.
They want $210,000 and you are going to offer $240,000 – another Win-Win-Win!
The answers to many, many more questions are immediately available to you:
- Advanced strategies for Buying and Selling with Lease Options.
- Your Wealth Building Arsenal.
- 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.