5 Reasons You Don’t Want to Own Multiple Properties

How many rental properties do YOU dream of owning? It’s a trick question. Most investors are saying, “As many as possible!” Your answer should be, “Zero.”

Why even read on? Because there’s money to be made, and the magic is in controlling  — not owning — as many properties as possible. So, what’s the difference between owning and controlling property? Check out below to learn more, including the top five reasons why controlling properties through lease options and sandwich lease options is the best way to earn money in real estate investing.


#1. Owning Multiple Properties Leaves You Wanting More

Most investors think it’s counterintuitive that controlling property gives you a financial upper hand over owning, but I’m going to break it down for you.

Dave is an experienced investor. He’s got 20 rental properties valued well over $1,000,000. Cash for most investors is limited, so to invest in more properties, Dave borrows $15,000 against his current properties to free up some funds. This leveraging puts those properties at risk, not to mention the added debt Dave’s got to repay. With $15,000, Dave qualifies for a mortgage to own a $150,000 rental house. Maybe he can stretch that to two properties, but it’s unlikely that a beginning investor or even Dave himself will end up owning more properties than that.


#2. Lease Options Give You More Bang For Your Buck

Why own if you can profit more by controlling properties through lease options?

Let’s take that same $15,000 that our experienced investor, Dave, is working with. Rather than using those funds as a downpayment on a rental like he did, you’re going to apply that cash to purchase option fees — non-refundable fees, typically set at 1-5% of the purchase price of a property. Let’s say the option fee for that $150,000 rental house is $2000 (1.3% fee). You’ve got enough capital left to control six more properties at the same rate.


#3. Lease Options Continue to Show You the Money

Whether you own or lease the house, you’ll still be pulling in the same amount monthly. When charging $1500 for rent (1% of the purchase value), you’re paying about $675 a month towards the mortgage or rent. This leaves you with added income of $825 a month before taxes, insurance, and maintenance.


#4. Lease Option Investors Are Rolling in ROI

Let’s say Dave, our experienced investor, was able to purchase two rental houses with his $15,000 investment. He’s now pulling in $825 in profits from each of his properties totaling $1650 gross monthly profit per month. Not a bad haul!

You, on the other hand, use your knowledge of lease option strategies and take control of 7 houses with your $15,000 investment. You’re netting $825 for each of your seven properties on a monthly basis, earning you a gross profit of $5775 per month, over $4000 more than our experienced investor, Dave.

But wait, there’s more!

As if your monthly income wasn’t great enough, let’s now look at your return on investment.

The annual gross ROI for Dave the experienced investor is 132%.
12 months x $825 rent profit x 2 houses = $19,800
$19,800 / $15,000 = 132%

The annual gross ROI for you, the lease option investor, is an unbelievable 462%.
12 months x $825 rent x 7 houses = $169,300
$169,300 / $15,000 = 462%

Learn more in my eBook: Investing in Real Estate with Lease Options, now including one free month membership in my Inner Circle.


#5. Level Up Your Investment Game with Sandwich Lease Options

Although Dave the experienced owner is gaining appreciation on his properties that you won’t as an option investor, it’s going to take years for the appreciation to catch up to the difference in ROI between the two of you. You’re pulling in more profits over the next few years and moving on to repeat the deal long before the appreciation catches up.


Let’s say you put an end buyer, Sheila, in place to pay the rent until the purchase is complete. Sheila pays YOU a lease option fee that reimburses your original $2000 cost.

When your investment becomes $0, your ROI becomes infinite.


You’ve got another payday coming your way when your end buyer, Sheila, completes the purchase. You’re selling to Sheila for $10,000 more than you owe the original owner.


What do you think?

Let’s review. This sandwich lease option deal begins with an initial $15,000 investment that’s returned almost immediately, pulls in a gross rent profit larger than what’s possible as an owner, and generates a sales profit greater than the appreciated value that an owner receives. All these perks without the risks and responsibilities of ownership.  

It’s no argument. The pros of lease option strategies outweigh those of owning multiple properties, hands down.

Learn about my Sandwich Lease Option Business in a Box packed with all tips, tools, and training you need to buy and sell properties using lease option strategies.



For more than 30 years, I’ve used the Sandwich Lease Option System to earn millions of dollars. I know there is plenty of opportunity in real estate investing for everyone. I want to see you be successful. That is why I am sharing my Sandwich Lease Option System with you.

If you found this information useful, please visit again soon at wendypatton.com.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

What did you think of this article? Please leave a comment below.


Details Behind Starting an LLC for Your Real Estate Business – Part 1

I thought it might be useful to put together a detailed post on some of the tangible benefits of starting a company for your real estate business and what the process looks like.

As you know, I am a business owner myself. In fact, I own several companies; an insurance company, a title company, a real estate management company, Keller Williams offices and more. Needless to say, I’ve started a few companies and would like to share with you what I’ve learned about setting them up.

It used to be that starting a company was an arduous task. One that required you to hire a lawyer most times and for the most part the process just took longer and cost more. Thankfully, times have changed somewhat in this regard. You can (and sometimes should) still hire a lawyer, but today, that is not always necessary to start your real estate business properly. In the age of information, you can quickly set up an LLC using online services such as MyCorporation to setup an LLC FREE.

Before we continue, I must first give you a quick disclaimer: I’m not a lawyer or a certified public accountant of any kind. Nothing I say or write should be held against me or my companies, and this information shouldn’t be taken as legal advice. If you’re looking for professional advice, I recommend consulting with a lawyer or CPA on your own.

Thank you!


Why Would You Want To Start Your Own Company At All?

I’m glad you asked!


There are of course many reasons why someone would want to start their own business or setup an LLC. Some of the most common reasons are: Legitimacy, Liability Control, Fulfilling a Lifelong Dream or Passion to start your very own business. For me, it was always a goal, a motivator for action, to have my own business. I knew that there would be a ton of responsibility (more than I imagined), but I also knew at a certain point, if I stuck with it, there would be more control and freedom (much more than I ever imagined).

Further reasons why someone may want to start a company:

  • Taxes: One of the very best things about starting a company, for many people, is that you can now start writing things off! Woohoo! To figure out what and how aggressively you can write-off business expenses, I recommend at least meeting with a CPA/Accountant to get an idea of what the rules are.
  • Personal Liability: In most cases, forming a company or LLC provides you with insulation from liability when it comes to your personal assets. For example say a company goes bankrupt or gets sued, the companies assets are separate from the owner’s personal assets if they have setup their company correctly, and the liabilities fall on the business assets (not your personal checking account).
  • Image: This one works both ways. It shows others you are a legitimate business that has registered with the proper authorities and more people are likely to feel comfortable working with you. On the other hand, it also gives many first-time business owners a sense of personal satisfaction and makes what they are doing feel that much more professional.
  • Personal Independence: This is the most common reason people start a business. They want to break out of the 9-5 grind. By starting a business you take full responsibility for your success and failure, and are one step closer to true independence. For some, that is freedom to do what they want, or it could be incentive to work 24/7 because they know the benefit flows to them, or it could be anything that brings you a sense of freedom and independence.


Why You May NOT Want to Start Your Own Business or LLC

I’m always striving to keep things balanced. So here is a look at the flip-side of the coin.


Do you have what it takes? Be honest with yourself. Starting a business is like learning to swim by nearly drowning. There are many highs and lows, the path is not linear or smooth. There is a chance you will fail. In fact, there is a guarantee that you will fail. Do you have the tenacity to fail forward? Or are you easily discouraged by setbacks? Maybe you are comfortable in your job and a change really isn’t that important to you.

Here are some things to consider:

  • You’re on Your OWN: The only person that can make this thing work is, you guessed it, YOU! That can be a daunting thought, especially when you start thinking about the future and the whole process your business has to take to become successful. A lot of people stop right here or never get past this sticking point. Think about it this way. At your job you have that one job to do (granted there may be many different tasks), when you’re the boss that also, most times, means you’re the accountant, janitor, and CEO; at least when you’re starting. In the beginning, you will have a hand in everything and may even be responsible for everything. That can be a lot to take in!
  • 9-5, what’s that?: You don’t have a schedule anymore. This thing called your business will be your life. That’s what it takes. You will not be home by 5PM every day. You will not work 5 days a week, 8 hours a day. You will work and work and work. Keeping steady hours is a real challenge because there is always so much you can be improving on every day!
  • Employer Incentives and Benefits: You won’t, at least in the beginning, have any of the benefits you may take for granted at your current job. Retirement accounts, 401K matching, health insurance etc. those are now your responsibilities. This can be a VERY challenging transition. Having a game plan, or stabilization fund can make the difference here.

Even with all that potentially “bad” stuff, I do not regret, for a minute, starting my own business. I am thrilled with the journey I am on and being a small business owner has given me more than I expected, both in stress and joy! However, you WILL get to a point if you keep at it, where things start falling together and you realize it was all worth the effort. I never stop, because the enjoyment is in the creation, in the excitement of starting something new that you’re going to pour your energy into. It’s hard to beat being an entrepreneur, you just might have to go through hell to get there.

If you’re still ready, willing and able then please continue reading along…


Business Structures: Types

When you’re starting a business you’ll need to figure out what kind of legal setup you are going to use and how you are going to structure that setup. Below is a quick overview of each business structure but you can also check out the Internal Revenue Service’s Website (which has a ton of good info).



For all intents and purposes, a corporation is a business structure that is treated as a separate legal entity from its owners. A corportation, ironically, is like its own person, with its own bank accounts and liabilities. These are typically more arduous to setup and are often time-consuming. Usually, you’ll go this route if there are shareholders, a board of directors and a staff etc. Typically, if this is your first business a corportation is not likely to be what you want.

The main advantage of a corporation is the release of liability as they relate to personal assets. There are amny diffrent types of corporations that you can setup, but that is beyond the purveiw of this post. One additional thing, that I think is important to mention, is that since Corporations are a separate legal entity they are taxed as such. This can get complicated in a hurry! Maybe a little too complicated if you’re just starting out.


Sole Proprietorship

A sole proprietorship, is like the name implies, a business structure owned by an individual. This is the most straightforward business structure to setup. It is also not without risk. All you need to do to start is to register your business with a DBA (doing business as).

Major downsides! You, as the business owner, are personally liable for and debts, suits, or problems your business incurs. Also, as a sole prop, you will find it VERY difficult to qualify for funding or get a bank to take you seriously. Income and expenses are on an individual personal return. ( the same thing goes for a GP below)


Partnership (General):

A GP (general partnership) is really similar to a sole proprietorship, except it has two or more people involved in the business. There is more upfront work gere than with a sole proprietorship becuse you’ll need to figure out a division of responsibilities, ownership levels and percentages, and any other odds and ends that pertain to the people involved in the business.

Danger ahead! You have all the same liability problems as with a sole proprietorship, but they are also compunded by the fact that you are also likely to be held responsible for any of your partners missteps! That can be a pretty big deal! Don’t beleive me, just google “business partnership nightmares”, and you’ll get an idea of how this can unfold. I avoid any sort of arrangment, when possible, that exposes my personal assets to liability.


Limited LIABILITY Company – LLC:

Like the name implies, your liability is limited. Since LLC’s are relatively new as business structures go, let’s take a closer look. First things first! Here’s why these are a useful structure, your LLC gives you similar protection to a corporation with much less fuss to setup. An LLC can also elect to be taxed many different ways. Some ways include: as a Sole Proprietorship, Partnership and as Different Types of Corportations. Also, your business operating costs and profits can be “passed through” to an individual tax return. (which makes things pretty simple).

Most of the companies I have setup have been LLC’s because of their protection of personal assets against business liabilities. They are, however, not without perceived weaknesses and downsides. Nothing is perfect, right?


Food For Though When it Comes to LLC’s:

  • Some states treat LLC’s different than others. Be sure you know how your state treats them! If they treat them more like a sole proprietorship you may want to explore other options. For me, I ALWAYS focus on insulating my personal assets from my business assets. You don’t want to lose the house if things don’t go your way and depending on how your LLC is viewed by the state in which you are doing business, you very well could. I use LLC’s to limit my personal liability and if that benefit is not there, well that kind of defeats the purpose. Make sure to check into this or speak with an attorney about how LLC’s are treated in your state.
  • The Tax Man Cometh! Some states require what is referred to as a franchise tax that you must pay in order to maintain or have an LLC. You can think of this as a “pay to play” type scenario. Many states have this fee and it is important to consider this before you get started. Can you afford a couple $100 in fees? That could also be a good benchmark to decide if you really are ready to start a business. If a few $100 will wipe you out, then chances are you are not ready.
  • Loans can be hard to come by. If you are thinking you will need traditional funding from a bank then you may want to consider your options. The liability aspect goes both ways. If your business account has $5 in it and no real assets for collaterall, there isn’t much for the bank to collect on if things go sideways. Just something to consider. LLC’s can be more challenging when you are trying to raise traditional capital.


I let time get away from me on this one!  I’ll be back next week with the details on setting up an LLC!

Are you thinking about starting your own business? I know many of you have already! For those who have, what was your experience, have any advice for our members? What was your outcome? Are you happy with it? Let me know in the comments or shoot me an email at info@wendypatton.com to share your business structure story.

Until Next Time! To Your Success!

Wendy Patton

Rent to Own Properties Done Ethically

As a rent to own properties investor, your goal should be putting people into houses and turning renters into homeowners.  A ‘few bad apples’ give the rent to own investment strategy a bad name, which is a shame, because it is a great strategy.

I don’t believe in the strategy of repeatedly churning rent to own properties to collect multiple option fees from multiple potential buyers. Instead, when done correctly, the rent to own properties strategy is a win-win for both the buyer and the seller. By doing this ethically, most buyers complete the purchase, your good reputation grows, buyers tell family and friends, with more deals flow to your business.

Rent to Own Property Buyers Need to Understand the Details

For the rent to own properties strategy to work best, potential buyers need to be confident that they’ll be ready to make the purchase when the lease term expires.

If the purchase isn’t completed, they’ll have paid substantial nonrefundable option money with nothing to show at the end. That becomes what they tell family and friends.

Buyers need to read and understand every word of rent to own property contracts and know exactly what they’re getting into. These are not standard purchase agreements. Each one is unique. These people may not have ever purchased a home before. Sellers should encourage buyers to seek the help of a qualified attorney. A qualified real estate attorney who clarifies the contract and their rights, before signing anything.

If they decides not to or can’t purchase the property at the end of the lease, the option simply expires. If the wording is ‘lease purchase’, without the word ‘option’, the buyer could be legally obligated to purchase the property but have not ability or desire to do so. Clarifying the wording is one of many reasons buyers should have the contract vetted by a real estate attorney before agreeing to it.

Rent to Own Properties Offer Buyers Many Benefits

Most tenants considering rent to own properties don’t think they can qualify for a mortgage.

The fact is that many won’t. But today is the time to learn what it takes to qualify in the future, maybe in 2018. Interest rates remaining near all-time lows means that mortgage payments are also at all-time lows.

Myself and other real estate experts fully expect home prices to continue appreciating in value. That means home affordability is more attractive today than it will be for the foreseeable future. Not being able to qualify for a mortgage today doesn’t mean you can’t lock in the best purchase opportunity that you may see during your lifetime.

Best Place To Start

Granted, sellers of rent to own properties often sell for a premium price. That should NOT keep buyers out of the market, especially when they are close to qualifying for a mortgage. Locking in the sales price of an appreciating rent to own property possibly means the sales price today will be at, or below, market value when the deal actually closes.

The best place to start is by achieving the FHA loan prequalification essentials:

  • An established steady employment history, at least two years with the same employer.
  • Consistent or increasing income over the past two years.
  • Your credit report should be in good standing with less than two 30-day late payments in the past two years. The minimum FICO score can be as low as 500 (subject to change).
  • Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.
  • Any foreclosure must be at least three years old with good credit for the past three years.
  • Mortgage payment must be approximately 30 percent (or less) of your total monthly gross income.

If you can answer YES to these statements, you should have no problem qualifying for an FHA home mortgage loan. If not, rent to own properties allow you to work towards these goals over the next couple of years with a purchase price locked in today.


Rent to Own Properties Have Flexible Contracts

Buyers should treat rent to own homes as any other purchased agreement. They should have an appraisal done and have the home inspected before signing the final contract. Then the buyer needs work with a mortgage broker to develop a plan enabling them to qualify for a mortgage before the option period expires.

By working with real estate professionals, including an attorney, rent to own properties can have contracts drawn up to satisfy both the buyer and the seller. The seller no longer has a vacant house to deal with.  While the buyer is able to overcome down payment and mortgage hurdles.


Length Of Purchase Option Flexibility 

Part of the flexibility that comes with rent to own property contracts is the length of the purchase option. These typically range from one to three years. If the seller wants to cash out of the deal asap, they will want a short option period.  If the buyer needs more time to repair their, or increase the down payment, they’ll want a longer option period. In some cases, the seller decides to carry the financing after finding the buyer is reliable about making monthly payments. There are significant tax advantages for the seller when they takes installment payments versus a lump sum.  This is particularly true when it’s an investment property rather than a primary residence.


Rent To Own Properties Conclusion

Rent to own property agreements are among the most flexible real estate contracts available in this dynamic market. This article only covers some of the options and requirements. I have many other articles available and strive to keep information about rent to own properties current with today’s market. You’ll find more information by clicking here.

If you want to work directly with me on the lease options business model or any of the other investing models that have proven highly profitable, please join me at www.wendypatton.com/what-is-wendy-pattons-inner-circle.

By Wendy Patton

For over 30 years I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. I know there is plenty of opportunity in the real estate investment market for everyone 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.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

What did you think of this article? Please leave a comment below.



Cash Out or Reinvest Real Estate Holdings

Real estate investing goes through cycles. There are times to buy (low point of the cycle), times to hold (middle), and times to sell (high). This isn’t complicated. All types of investing are about buying low and selling high. What is more complicated is deciding whether to cash out or reinvest your real estate holdings.

The ideal time to buy in the current cycle (low point) was 6 or 7 years ago. Since then, rents and property values have been steadily increasing. Making these years the time to hold and profit (mid point). I don’t have a crystal ball but based on many years of experience, now is the time to be considering selling at the high point. With that, comes the decision to cash out or reinvest your real estate holdings.

The Buy, Hold, Cash Out or Reinvest Cycle

It may not have been clear then but it’s clear today that the time to buy was 7 years ago. The market was flooded with foreclosures, REOs, short sales, and individuals desperate to sell. Buyers were very few and very far between. Unemployment was stretching for historical highs. Foreclosures and unpayable debt trashed people’s credit ratings by the millions. If you didn’t have cash, even a stellar credit rating probably won’t buy you a mortgage. Still, creative investors found ways to gain control of properties for little or nothing down. But that was not the time to cash out or reinvest.

The past several years have been a time to hold as people got back on their feet after the financial meltdown. Today, foreclosures and bad debt are falling off people’s credit reports. An unemployment rate below 5 percent is considered a fully employed economy. Property values and rents have been steadily increasing. This may seem predatory to some people. However, buying those short sales and rehabbing foreclosures got many people out of bad situations. More recently, the lease with option to purchase has helped return countless people to homeownership. It was a win-win during tough times.

Right now, markets like San Francisco, New York City, and Los Angeles, are well beyond the last bubble peak in terms of pricing. If not declining in price, these have become price stagnant. Bidding wars are dwindling as the result of few buyers being able to afford or willing to pay peak prices. While real estate investing is always driven by local markets, today’s national circumstances strongly indicate a time to consider if you should cash out or reinvest.

Cash Out or Reinvest Considerations

Hopefully, as a real estate investor, you find yourself in the enviable position of needing to decide whether to cash out or reinvest the appreciated value of your existing properties. The place I highly suggest you begin is by performing a thorough analysis of all investment properties that you currently own.

You may or may not have financial holdings outside of real estate but I’m only dealing with real estate investments. You want to take a very close look at your real estate holdings to prioritize a list of them from best performing to the least performing. This isn’t always about the property generating the most cash. If you’ve followed my on-going advice, you are controlling property with the least amount of your own money invested. Deciding to cash out or reinvest involves looking at the Return on Investment generated based on how much cash you put into the deal rather than just the amount of cash the property is throwing off each month.

Positive cash flow of $500 per month from an initial investment of $1,500 is much better than the same $500 positive cash flow from a $40,000 investment (reclaim your large investment). With that in mind, conduct a thorough analysis to prioritize your investments from best to least performing. Those at the bottom of the list should next be considered for cash out or reinvest options.  

Cash Out or Reinvest Options

Once you decide to take the equity out of your investment(s), you have several options. Among the most common are:

  • Bring in cash via an equity line of credit or equity loan. This typically brings in 70 to 75 percent of the appreciated value. And you still control the property. Maybe use the money for another bargain investment.
  • Take out 100 percent of the profit by selling. This brings in more cash but you lose control.
  • Offer seller financing to maximize your cash flow and profit while minimizing taxes.
  • Use the cash to invest in another property or two or three. Think “controlling the property for the least amount invested”. Also, think about a 1031 Exchange for this.
  • Use the cash to pay a balloon payment that is coming due on a high cash flow property.
  • Use the cash to take your family on vacation. Taxes will be owed.
  • You might be able to refinance at a lower interest rate to both keep control of the property and improve cash flow.
  • Keep the cash in a reserve fund for emergencies or until a fantastic investment opportunity presents itself.
  • Use the cash to buy real estate secured notes paying 6 to 8 percent interest. This gets you out of the landlord business while still generating a healthy rate of return on your money.

Clearly, there are many considerations available when deciding to cash out or reinvest. If you’re faced with this decision, the good news is that you jumped into the market at the low point and rode it to a healthy profit. Good for you! Successful investors look for this exact opportunity. Now, may well be the time for you to analyze whether you should cash out or reinvest for another profitable round of real estate investing.

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.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

What did you think of this article? Please leave a comment below.


How to Rehab or Flip a House Successfully

Today, the residential real estate market continues steadily appreciating in value in most metropolitan markets. In fact, the low housing inventory has many buyers seeking out any reasonable deal.  Now is the perfect time to learn how to rehab or flip a house.

One of the first things to understand about how to rehab or flip a house is you are not a retail buyer. It’s the retail buyer having lots of trouble finding an attractive and affordable home in this tight market. As a rehabber, that shouts OPPORTUNITY to you.

How to Rehab or Flip a House is About Buying at the Right Price

You’re in the market for distressed properties. Run down properties, outdated properties, neglected properties, damaged properties. Exactly the properties that retail buyers avoid. These are your profitable properties.

It all begins when you earn your profit with the right purchase price. First, find a rundown and neglected property in the right neighborhood. Don’t pay more than 70% of the after repair value (ARV). Let’s assume you’re going to need to spend $30,000 on the rehab. And the house will retail for $150,000 after you rehab. That means your purchase cost shouldn’t be more than $75,000. Here’s the math equation.

($150,000 ARV X 0.70) – $30,000 rehab = $75,000 purchase price.

Your profit will be $45,000 before closing costs (closing costs are a subject for another article). Rehab six of these a year and you’re turning a $270,000 profit.

Some savvy investors use 65% of the ARV for even higher profits.

Another critical aspect of how to rehab or flip a house is about buying in the right neighborhood.

How to Rehab or Flip a House is About the Neighborhood

Because you want to maximize your profit, the right neighborhood for rehabbing and flipping is upper middle income homes. These are neighborhoods for second or third time buyers. Places where more prosperous buyers are buying up.

Top income neighborhoods aren’t attractive because these people want to customize their own homes. They aren’t going to be very receptive to remodeling choices you’ve already made. Neighborhoods for first time buyers aren’t a good choice either because these buyers are too price sensitive.

How to rehab and flip a house successfully doesn’t have a specific price range because home prices vary greatly across the country. The neighborhood is the consistent factor from city to city and town to town.  You want upper middle income neighborhoods. What you’re typically looking for are neighborhoods where at least one parent has a college degree and works as a professional. The household income should exceed $75,000 per year. Most of these are in the suburbs, away from inner city crime and poverty. These people enjoy more luxuries than most but remain on a budget. The upper middle class often have two or more cars along with a boat, motorhome, or other spendy recreational vehicle. These people are also able to take annual destination vacations.

How to Rehab or Flip a House Becomes Most Profitable When You Make Mom Happy

What you want to strongly consider when deciding how to rehab or flip a house is what the mother in the family finds important. Sure, dad wants a workshop in the garage. However, the most important renovations are made to the kitchen, bathrooms, and master bedroom. Those are the domains of the woman of the home. When you make her happy, you’ll get your full asking price.

As you consider the remodel, here are some of the upper middle class features many moms want:

  • A mud room on a back or side entrance for the family’s muddy tennis shoes and sports equipment.
  • A laundry room is an essential element that is often more important than an extra bedroom. Placing this next to the mud room is even better.
  • There is never enough storage for a growing family.
  • In the kitchen, women always want the very best. From the latest appliances, faucets and sinks, countertops, floors and cabinetry yet functional for the entire family to enjoy.
  • A master spa bath will seal the deal.

Highly experienced rehabbers often pick a niche. For some, it’s houses with a mold problem. Others specialize in foundation repairs or fire damage. These can be great niches that few other rehabbers venture into – for good reason. These can be highly profitable when you have the expertise to pull them off. Or you could lose your shirt. For those just learning how to rehab or flip a house, it’s best to stick with the proven formula of buying at the right price, in the right neighborhood, and rehabbing to make mom happy.

Real estate investing is all about finding creative solutions that work for you and others.

By Wendy Patton

What did you think of this article? Please leave a comment below.

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.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

Lease Option Coaching FAQ

It’s always my pleasure to answer student questions about lease options. I do this via multiple venues. Sometimes it’s a direct response about specifics to a deal a student is currently working on. At other times, the lease option coaching FAQ is more general to appeal to a larger audience. Another highly informational setting is my monthly Inner Circle Live Q&A calls. At other times, it is for a webinar.

Here, I provide answers to questions that frequently come up on the subject. When it comes to lease option coaching FAQ the sellers and end buyers have different concerns. You, as the principle (investor) in the deal not only have your own questions but also need to be able to answer the questions for your sellers and buyers. The FAQ that follow should be of interest to everyone (investors, sellers, and buyers) but don’t hesitate to submit your own lease option coaching FAQ.

To your Success,


Generally, both seller and buyer FAQ are pertinent to lease option investors either as the owner, buyer, or strictly as an investor in sandwich lease options.

Lease Option FAQ for Sellers

Q: Why would I choose to do a lease option instead of outright selling the house for cash?

A: That depends on your circumstances. However, there are many advantages for the seller in a lease option. First, it can be difficult to find a qualified buyer in today’s market. It can be even more difficult to find a buyer willing to pay your asking price. The lease option allows you to sell at an above market price and brings in many more potential buyers.

Q: The lease option seems like a complicated process. Where do I start?

A: Start by deciding the terms you want to offer the buyer. Decide how long you want the purchase option to be available. Most common is a 1 or 2 year purchase offer. Then decide how much to charge for a nonrefundable purchase option fee. Typically, it’s between 1% 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.

Q: What’s the next step in a lease option?

A: As the seller, you have several options to consider. Even before you have a buyer interested in 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 will go a long way towards helping the buyer understand how the process works. I always recommend that you have a real estate attorney knowledgeable in lease options review your contracts. This is particularly important with your first several deals and after any change in regulations.

Additionally, for investors, I encourage you to take full advantage of these lease option coaching FAQ as well as the additional resources I’ve included at the end of this article.

Lease Option FAQ for Buyers

Q: Finding a lease option purchase home seems difficult, where do I start?

A: Finding a lease option purchase starts with a search for available houses. Begin your search by asking a real estate agent to search the MLS. Also, look at your local craigslist and other local periodicals with a real estate section. You can also find any house for sale to make a lease option purchase offer.

Q: When deciding to accept a lease option purchase agreement, how do I know if I’m getting a fair deal?

A: You should always have a real estate attorney review any contract before signing. Just as importantly, you can counter offer any lease option purchase agreement to include terms that you prefer. The lease option purchase agreement is a very flexible contract that can be written to suit both the buyer and the seller.

Q: What is my biggest risk?

A: Qualifying for a loan to complete the purchase is the biggest difficulty most people face with a lease purchase agreement. Carefully consider if it’s reasonably possible for you to fix your credit rating within the option time period. If not, ask for more time. Also, a lease option agreement can include a provision to automatically extend the option period if agreed credit improvement is being made. Credit counseling is another option.

These lease option coaching FAQ demonstrate this strategy offers many possibilities for investors, buyers, and sellers willing to think outside the box. These are only a few of the many possible questions you may have. To learn more, you’ll want to read this other useful information that I offer to you free. Please take advantage of it today.



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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Control Without Ownership using Lease Options

I want to introduce you to an incredible real estate investing system that removes more than 95% of the risk that most investors face when they buy and own a property. It’s my Sandwich Lease Option System that you can gain access to it at https://wendypatton.com/leaseoptions/lease-option-swipe-file/.

In fact, by using my system you will put money in your pocket from the beginning without risk by controlling the property without owning the property. It’s as simple as leasing a property with the option to buy. That gives you full control of the property without the financial risk of being obligated to buy. Yes, it does take a small up front financial obligation of typically $1,000. But you recover that 9Xs when you sell the lease option to someone wanting to be a homeowner. How much can you sell the lease option for? Typically about $10,000. THAT MEANS YOU POCKET a $9,000 PROFIT WITHOUT THE RISK OF OWNERSHIP.

Keys to Sandwich Lease Option System

A major key to the Sandwich Lease Option System is targeting people that can afford the monthly payment but have credit scores that don’t qualify them for a traditional loan right now. These people have the down payment, which is what you collect as the lease option (your $9,000 profit on the front end of the deal).

Properties that make the ideal investment are those where the monthly payment is close to the average rents in the neighborhood. That way, you’re offering homeownership to people that would otherwise be renters. For the same monthly cost, you offer people that share apartment walls and a parking lots with hundreds of other people the opportunity to own a white picket fence, a private yard, three bedrooms, and a private garage.

That’s absolutely a win-win-win solution for you, the seller, and the buyer. You buy for close to the full asking price (which the seller loves). You sell the lease option for a little more than the full retail price (which leaves a future profit in your pocket). And the end buyer becomes a homeowner of a private house instead of an apartment renter.

Easier Than Being a Landlord

Another positive critical element of the Sandwich Lease Option System is that you aren’t even a landlord. Done right, lease options are written different from a traditional rental agreement. Since the renter intends to become the homeowner, you want to treat him or her that way from the beginning. You don’t want to have to deal with or pay for a broken hot water tank at 7 a.m. on New Year’s Day. Avoiding being a landlord is as simple making the soon-to-be homeowner responsible for maintenance and repairs of the home from the beginning.

What could be a more compelling real estate investment strategy than the Sandwich Lease Option System? You make a huge profit up front and another profit when the end buyer closes the deal in a year or so. In-between, you have positive cash flow by charging a rent that is higher than your lease obligation to the seller. If for so some reason the deal falls apart in the end, you never did own it and it goes back to the seller. You didn’t even have the responsibility as a landlord while enjoying the high profits that come from real estate investing.

The final thought I want to leave you with is to emphasize to new investors, those of you just getting started, that you DO NOT have to own property in order to profit from it. Lease Options allow you to profit, control, buy, and sell property – all without owning it!

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.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

What did you think of this article? Please leave a comment below.

Home Leasing Options

One reason I favor leasing options coaching is that these strategies give the most flexibility to complete successful deals. The three basic leasing options are the straight lease purchase option for a house you already own, the sandwich lease option, and cooperative leasing options. Besides these basic strategies, you and the other parties to the deal can write the contracts in almost anyway to create a win-win-win scenario for everyone involved. However, state real estate laws vary from state to state so make sure you understand the laws before deviating too far from the norms.

Lease Options win win

Using Straight Leasing Options to Sell Your Home

Using the straight leasing options to sell a house is my least favorite of the three strategies. Simply put, it has the highest cost and the most risk to you as an investor. This leasing options strategy involves you first taking full ownership of the house. That’s going to require a significant down payment and closing costs.

However, the straight leasing options method could be the right choice if you already own a house and want to sell for top dollar. Often it’s a good choice for landlords wanting to sell a house. He or she can use the lease with an option to purchase with the existing tenants or find other tenants interested in this choice.

Sandwich Leasing Options

The sandwich leasing option is more appropriate for investors because the costs and risks are very low. Here you find a seller willing to sell with a leasing option. You sign a leasing option that you only exercise after you find a potential buyer.

You then put that buyer under your own leasing options contract. You make sure their option fee is higher than the one you pay the seller. You also make sure the monthly rent is more than you are obligated to pay the seller. And finally, you set the selling price to the end buyer higher than what you have to pay the seller.

That keeps all of your money out of the deal and creates three paydays for you. First, when collect the higher option fee, each month when you collect more rent than you pay the seller, and in the end when collect a higher selling price than you owe the seller.

Cooperative Leasing Options

These are also known as wholesale leasing options. This leasing options strategy involves a seller, you, and a wholesale buyer. The way to begin this investing strategy is by building a list of wholesale buyers looking for lease options. Once you have a wholesale buyer list, you begin looking for leasing options opportunities. You then contract with the seller to find a buyer.

Once you have the house under contract, you market to your wholesale buyer list. Typically, a wholesale buyer will take full ownership of the house. They then find a leasing options end buyer and put it under contract. The leasing option is between the wholesale buyer and the end buyer. Your involvement in the deal ends when you sell your contract with the original seller to the wholesale buyer.

Remember, these are only the basic leasing options strategies. There are many variations to each. If you’re interested in learning more about these strategies, please use the information below to contact me.

If you want to work directly with me as your leasing options coach or with any of my other investing models that have proven highly profitable, please join me at www.wendypatton.com/what-is-wendy-pattons-inner-circle.

Besides reading this article about leasing options, you’ll want to read this other useful information that I offer free. Please take advantage of it today.

Rent to Own Homes

Lease Option Coaching 101

Lease Option Coaching

Real Estate Investment

Rent to Own Houses – A Buyer’s Guide

Investment Property Financing Options

Rent to Own is the Way to Go

Several times each week, I make the most current real estate investing information available to readers. This time, it’s about leasing options coaching but the information I provide changes constantly to stay current with the market. Be sure to check back at: www.wendypatton.com. Also, get started learning how to do NO CASH lease options on real estate by picking up a copy of my bestseller book: Investing in Real Estate with Lease Options and Subject-to Deals.

By Wendy Patton

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