Sandwich Lease Options Are For Winners – Winners – Winners

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In my last blog, I wrote about the sandwich lease trifecta because it has 3-Paydays. But that is not the only sandwich lease option trifecta because these investment deals are also about 3-WINNERS – the seller, the tenant-buyer, and you as the investor!

3-Winners is about using sandwich lease options to stay in business for a long time and have a wonderful reputation!

The Tenant-Buyer as a Sandwich Lease Option Winner

I’ll start with the tenant-buyer because they typically have the most to gain or lose in a sandwich lease option. After all, they are putting up a hefty purchase option fee to buy a home worth hundreds of thousands of dollars. The tenant-buyer deserves to be treated with respect. What you want to do is help them take the right steps to become a homeowner – it’s good for your business and good for your reputation.

Unfortunately, there are sandwich lease option investors out there that do not treat the tenant-buyer with respect. Some investors don’t care if the tenant-buyer gets the financing needed to complete the purchase. Investors without good business ethics just want to collect the non-refundable purchase option fee and don’t care if the tenant-buyer can complete the deal. These investors just figure they can bring in another tenant-buyer with another hefty purchase option fee – that is bad for your business and bad for your reputation.

This is about a Win-Win-Win for everyone – you, the seller, AND the Tenant-Buyer!

Always remember why a tenant-buyer wants a rent-to-own home.

  1. They need time to fix their credit so they can qualify for a mortgage.
  2. They want to lock in the price today and live in the home they will purchase in the future.

So, what can you do as the investor to help tenant-buyer be a winner? There are several things, starting with only accepting tenant-buyers with a reasonable chance of qualifying for a mortgage in the next 12 to 24 months (36 at the most). That means a person that filed for bankruptcy a few months ago is not a suitable candidate to be a tenant-buyer because the bankruptcy will stay on their credit report for many years. Neither is a person that owes money to the IRS or back child support because those bad debits never go away the way that bad credit card debt falls off a credit report. You also want to know that they earn enough income to qualify for the mortgage. You also need to be sure that the house will appraise for the price that you sell it to them for.

There are other things that you can do to help tenant-buyers succeed:

Recommend that they get a professional inspection from the beginning – the same way any buyer would. Disclose anything that you know that is wrong with the house – this is probably a legal requirement in your state. You also want to be sure the rent money going to the seller is being used to pay the current mortgage on the house. A safe way to do this is by using a 3rd-party escrow service.

Something else I believe a sandwich lease option can do is help the tenant-buyer become a responsible homeowner. This is why it is important to make them responsible for all the minor repairs, all the maintenance, and most of the major repairs. This is also a win for you and the seller because you are not responsible for what a homeowner should be responsible for.

Still, you need to be prepared to help a well-qualified tenant-buyer that can’t always make immediate and necessary repairs. Because I live in Michigan much of my investing is here also. When a furnace goes out during a Michigan winter, it’s crucial to get that fixed. Heat is necessary. When a tenant can’t make this happen, I might need to step in with a helping hand. But one of the big benefits of sandwich lease options is that my involvement and expenses are minimal. I can have an HVAC technician out to the house with a short phone call. As an investment professional, you have options to manage the cost of the repair. One option is the tenant pays as much as they can on the spot with the balance being charged to your account or the entire cost is charged to you, but the tenant pays the bill with their next paycheck. However you work out the details, any amount that remains on your account is ultimately added to the sales price of the home paid by the tenant-buyer – if you write the original paperwork correctly.

Your goal should be putting people into homes and turning renters into homeowners.

The Seller as a Sandwich Lease Option Winner

First of all, a sandwich lease option does not work for every seller or in every situation. A value that you bring to the table as an investor is to find the right seller for these deals. That’s why sometimes I use other tools like Cooperative Lease Options, Get the Deed “Subject To,” and Working with Realtors.

I’ve written many times about sellers that sandwich lease options do work for. These are often people that have a house that they need to have generating cash quickly. Often these people have no landlord experience, don’t want to be landlords, or do not make good landlords. A sandwich lease option is a way for them to start generating cash fast, without the hassles of being a landlord, and with a plan to sell the house in the relatively near future. Those are key factors for a seller using a sandwich lease option being a winner.

These sellers are often:

Divorced and can no longer afford the mortgage.

Have lost a job or had a job transfer.

Don’t have enough equity for a traditional sale that requires paying an agent’s commission.

Tried being a landlord but learned they are not good at it.

Have a vacant house with a mortgage bleeding them dry.

There are many other reasons as simple as not having the time to deal with a sale right now.

When you find the right seller, there are things you can do to make a sandwich lease option a winning deal for them. Much of what you do is make sure all the paperwork and documentation are done correctly. Most people only sell a few houses in their lifetime and have never sold one using a sandwich lease option. You are the expert in these deals, and they need you to help them navigate the paperwork.

You also help sellers by putting qualified and responsible tenant-buyers in the house. That can include videotaping a walk-through or using a checklist with the tenant to document the condition when they move in.

The seller gets a tenant-buyer that is going to take better care of the house and the seller won’t have to deal with them.

The Investor as a Sandwich Lease Option Winner

This is what I write about the most, so I’m going to be brief. But I have to repeat that a sandwich lease option is a low/no cost and low risk way to get started as a real estate investor. You are going to collect 3-Paydays that start almost immediately and go on for 12 or 18 months. This is mostly passive income, which means you can have 5, 10, 20, or more of these deals that are all paying you a monthly income.

An accumulative income that can easily add up to $250,000 or more every year.

I call this Future Financial Freedom (FX3). Sandwich lease options allow you to create and enjoy your life first. You can then build your business around your life. It can mean having time for breakfast with your kids and going on a date night with your spouse. It can mean the dream vacation that your entire family deserves. It’s about creating long-term wealth for your family.

You can work from home or from anywhere in the world. You can work remotely!!!

Successful people take ACTION! Order today so that you can start depositing money into your bank account in 29 days!!!

  1. Your Wealth Building Arsenal.
  2. Advanced strategies for Buying and Selling with Lease Options.
  3. Investing In Real Estate with Lease Options.
  4. Cooperative Lease Options when the time is right.
  5. Expand to Get the Deed “Subject To.”
  6. Add Personalized Coaching.
  7. 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.

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