The single most important thing you need to do now is Take Action with a strategy that is all upside without a downside. With a Sandwich Lease Option, all you are doing is Taking an Option to Make Money. By taking action, you put a little effort into determining how much money you can earn from a potential deal. In most situations, your best option is bringing home a big payday or three. In the few situations that don’t show enough financial gain to be worth further effort on your part, you option out. No money ventured, no money lost.
For real estate investors, the lease with an option to purchase is much more appealing and profitable than traditional rentals or rehabs. Both seasoned and beginning investors have to be thrilled with the opportunity to control and profit from multiple properties with little or none of their own cash tied up in the deals.
Huge Difference Between an Option and Ownership
Any option is a contract giving its purchaser the right to exercise a privilege. In the case of real estate investing, it gives the investor the right to purchase property during a contracted period of time. This is how you gain control of a property, without the added burdens of ownership.
A lot of the money made in real estate is made by controlling property. Ownership just adds problems and responsibilities.
The sandwich lease option is not a get-rich-quick scheme. Done right, it starts putting money in your pocket right away but it usually requires one to three years for the biggest payoff. The sandwich lease option generates an income stream of several hundred dollars each month that leads up to a big payday of tens of thousands of dollars between one and three years down the road.
Your Future Financial Freedom (FX3) happens when you put one, two, or three of these deals in your financial pipeline each month.
When you seek to control rather than to own, you become a lot less concerned with the purchase price. Instead, you become much more interested in the “terms” of the lease. You still need to be conscious of the price but less so. More of your attention is on terms such as the initial cost of the lease option (option fee), how long you’ll have control, and monthly cost (rent) to maintain control.
Because you are less concerned with the purchase price, you can profit nicely from houses costing you much closer to the full retail value. This vastly opens the larger market that isn’t available to most investors limited only to highly discounted distressed sales.
The entire market becomes available to you. You are only limited by sellers that need all of their money immediately. Although limited to sellers that don’t immediately need cash, your market opens up to distressed properties AND retail properties not requiring all of the cash up front.
John D. Rockefeller stated that the secret to achieving great wealth is “control everything, own nothing.”
That is exactly the strategy with the sandwich lease option.
Your Basic Sandwich Lease Option Strategy Is:
Lease option from a seller and then lease option the same home to a buyer.
In a sandwich lease option, the meat is in the middle. You are that meat in the middle. The seller and the end buyer are the bread and butter. The other two principals in the deal have bread and butter in the game and you have the meat. That makes it a win/win/win for all three.
Your meat in the game is the financial difference between what you agree to pay for the property and what you sell the property for. PLUS being paid a higher lease option fee from the end buyer at the beginning of the deal than you pay the seller. PLUS collecting a higher monthly rent from the end buyer than you pay to the seller. This earns you a steady income by controlling the property for one to three years until the end buyer completes the option to purchase.
Your big $20,000, $30,000, $40,000 (or more) payday comes at the closing table when the end buyer completes the purchase. At this point, you’ve invested little or none of your own cash, earned a steady income for months or years, and banked a big payday in the end. Putting two of these deals in place each month can soon be generating an annual income for you that varies anywhere from $240,000 (12 months X $20,000) to $480,000 (12 x $40,000).
How much it actually turns out to be is totally up to you. You make your own financial choices in life.
With Your Feet Freed From Clay – Expand to Bigger Ideas
To expand on this idea, you have several other types of lease options as well. A straight lease option enables you to control the property while you have a tenant in place. You collect the steady rental income and you decide if you want to become the end buyer, cashing out the seller (it’s your option). Then, as a long-term landlord, you have paying tenants sending you an ongoing income stream and repaying any loan you took out.
Another version is the cooperative or wholesale lease option that you use when you need quick cash. In this version, you flip your original lease option to another investor for a smaller portion of the overall profit (leaving meat in the middle for the other investor). The other investor then profits by either becoming a landlord or finding the end buyer. Another version of the cooperative lease option is flipping your option with the seller directly to the end buyer. Not only do lease options give you control without owning, but lease options also come with a ton of flexibility!
Here is exactly how you get started with the first telephone call toward your Future Financial Freedom (FX3):
“Hi, my name is ________. I am calling about your home for rent. Can you tell me if it is still available?”
If the home sounds like something you would like to have for a sandwich lease option then you pop the question.
“Wow, this home sounds really nice, would you considering selling it?”
The Wealth Building Arsenal combines my 4 proven real estate investment-training courses into one powerful package! Included is 1. Cooperative Lease Options, 2. Working With Realtors, 3. Buying On Lease Options, and 4. Selling On Lease Options.
There are also advanced techniques that you’ll want to use based on whether it is a strong buyers’ market or if it is a strong sellers’ market. You always want to limit your risk. Everything about Lease Options is covered right here:
- Investing In Real Estate with Lease Options.
- Advanced strategies for Buying and Selling with Lease Options.
- You’re Wealth Building Arsenal.
- Cooperative Lease Options.
- Add Personalized Coaching.
- 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.
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