There is a secret that very few investors know about working with Realtors®. This secret strategy works great for sandwich lease option investors with some experience, but I encourage new investors to learn the details very early in their careers. Investors will do well using the basic approach to sandwich lease options. But working with Realtors® opens a new window of opportunity.
Working with Realtors® will change your sandwich lease option investment strategy forever!
Why Sandwich Lease Options Have Strong Appeal With Realtors®
As an investor, you need to take the lead by explaining to Realtors what sandwich lease options have to offer them. Before you can do that, you must understand the traditional sale from a Realtor’s perspective so that you understand what they need to know about sandwich lease options. There are differences between the two processes that are not obvious to Realtors. Here are the basic points of a traditional sale from the Realtor’s perspective:
- A seller lists a home for sale with a Realtor.
- A Realtor finds a fully qualified buyer for the home.
- The contract is signed between the seller and buyer.
- The buyer completes the mortgage approval process.
- The sale closes and money changes hands.
- The Realtor receives their commission.
The sandwich lease option process has more in common with the traditional sales process than Realtors realize.
What to Explain When Working With Realtors®
The sandwich lease option process is very similar but there are key differences that you need to help them understand when working with Realtors. The first step is mostly the same. A seller is going to list a home with a Realtor. Maybe the Realtor you are working with or maybe a different Realtor that lists it in the MLS. It doesn’t matter because the important part is the entire MLS is now open to you as a sandwich lease option investor – good stuff!
The second step is a little different. As a sandwich lease option investor, you are the one that is going to find a qualified tenant-buyer. A tenant-buyer instead of a regular buyer but they will be qualified. You need to be fully prepared to explain what a qualified tenant-buyer is and why this will work well for everyone involved.
As the sandwich lease option investor, you are also going to take the lead in explaining the contracts that need to be signed. This is a very important step for you, and you will be well prepared because the sandwich lease option course shows you all of the details and provides contract templates. This is also important to the Realtor because they have heard a little about sandwich lease options but probably have never filled in the contract details. Your role is to help with purchase option fees, monthly rent agreements, tenant maintenance responsibilities, etc.
A big bonus point to share when working with Realtors – You are doing a hefty amount of the work to help the Realtor.
Next is dealing with the mortgage that is not going to be approved immediately. This is another crucial step you want to carefully explain to Realtors and sellers. The mortgage won’t be approved for about 12 or 18 months but there is plenty of money changing hands and to be made until the deal is finalized. This can be critical when working with Realtors because they are only expecting to receive their commission after the mortgage is approved and the deal closes. You’ll learn about different creative ways to accomplish this in a timely manner such as paying part of the commission upfront from the purchase option fee.
There you have it – the key differences involving sandwich lease options when working with Realtors!
Everyone expects the deal to close in 12 or 18 months. The deal closes in the same manner as everyone expects it to. The final money is distributed, and everyone is happy – WIN-WIN-WIN-WIN for the seller, you as the investor, the Realtor, and the buyer.
Getting Realtors® Begging You to Buy Their Listings
Realtors have 80-90% of the nice homes listed on the market. Those are exactly the houses that you want for a sandwich lease option – nice white-picket-fenced houses with backyards for families. As soon as you start working with Realtors, both of you will have another method to bring in deals that will close.
You should have so many possible deals that much of your time is spent evaluating which deals you want to pursue.
When Realtors think of most investors, the only thing that comes to mind is “low ball” offers. Sandwich lease options don’t work that way. You are dealing with white-picket-fence homes, and you will be making full price or close to full price offers – exactly what Realtors want and expect from any buyer. Sandwich lease options are about making money on the “terms of the contract” rather than the sales price. You are also a professional that brings many creative solutions to the table to get tough deals done. When Realtors and sellers understand this (especially the Realtor), you have gotten over the hump of helping them understand that sandwich lease options work for everyone. When Realtors understand this and that you will be a repeat buyer, they will be begging you to buy their listings.
There are three powerful ways you show Realtors what you will do to help them:
- Send a brief letter or email to a listing agent explaining the concept.
- Use the presentation from the course materials (or a slightly customized version) to go into the details with an individual Realtor or an entire real estate office.
- Network continuously to tell Realtors what you do.
When a Realtor hears a seller say, “If my home doesn’t sell soon, I might have to RENT IT!”, the Realtor will immediately think of you.
Working With Realtors® Helps Your Business in Big Ways
All you need are 2 to 4 good listing Realtors. Listing Realtors work directly with the sellers and know which sellers can rent and which homes are vacant. Just like all sandwich lease options, working with realtors works in both a seller’s market and a buyer’s market. All you do is tweak the terms of the contract a little to make it appealing to everyone in every type of market.
Although sandwich lease options will be the primary business you do with them, Realtors will also help you with other parts of your investment business including “Subject to Deals” and “Cooperative Lease Options.” Working with Realtors will become a big part of your “Wealth Building Arsenal.”
Sandwich lease options will also become a big part of the Realtor’s business. You bring unique skills and possibilities to the table that very few realtors have an opportunity to work with…
- Close deals that otherwise aren’t selling!
- Help sellers that need debt relief!
- Help sellers that have very little equity!
- Help sellers that will immediately benefit from a fast lease!
- Help sellers that don’t want or need all their cash right away!
- Help sellers that need to turn a vacant house into an income-producing house fast!
- Help sellers wanting to sell a house in need of some renovations!
Now is the time to continue your journey to becoming the best real estate investor you can be!
- Working with Realtors.
- Your Wealth Building Arsenal.
- Advanced strategies for Buying and Selling with Lease Options.
- Investing In Real Estate with Lease Options.
- Add Personalized Coaching.
- Cooperative Lease Options.
- 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.
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.