The Entrepreneur Fast Track with Cooperative Lease Options

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Cooperative lease options are a way of flipping lease options. Flipping a lease option is much, much faster than flipping a rehab. Think about four months to rehab and flip a house compared to four days to flip a lease option with a cooperative lease option. Not only are cooperative lease options super-fast, but your risk is also super-low, and very little effort is needed to make it happen.

Flipping with cooperative lease options only takes a few days and a few pieces of paper – no demolition and rebuilding required!

The Cutting Edge Path to Becoming a Real Estate Entrepreneur

The cooperative lease option (also known as wholesale lease options) can deliver a payday in a few hours under the right conditions. But as full disclosure, it will probably take a day or two. It is cutting edge, but I’ve proven many times how well it works. Because it is cutting edge, you won’t find it in any other real estate textbooks. By the time cooperative lease options become a widely talked about path for becoming an entrepreneur, many more investors will have already jumped into this niche.

The cooperative lease course contains the cut-and-paste templates that you need to earn your first option fee in a few short days. One of the most important templates is the “Assignment of Sales Contract and Option Agreement.” This is the main contract with the details connecting the seller with the tenant-buyer or wholesale buyer while clearly documenting the purchase option fee that you earn for your role in the cooperative lease option.

So, what is a cooperative lease option all about?

There are two basic versions:

  1. A cooperative lease option between the seller, you, and a tenant-buyer.
  2. A cooperative lease option between the seller, you, and another investor (wholesaling cooperative lease options).

With version #1, you sell the option directly to a tenant-buyer. This leaves more of the meat on the bone (money) for you, but it may take a little longer to educate the buyer about lease options.

With version #2, you sell the option to another investor. You have to leave a decent amount of meat on the bone for the other investor. However, savvy investors will recognize a great deal when they see it and hand you cash immediately.

Cooperative Lease Option Entrepreneurial Version #1

The basic process is for you to find a seller wanting the benefits that come with a lease option. Both versions of the cooperative lease option require sellers and finding them is covered in the course materials. Once you have a seller, you negotiate the terms and conditions of the lease with an option to purchase. This typically includes the sales price, the lease option fee, the length of the lease during which a tenant-buyer has the option to purchase, and the monthly rent that will be paid during the lease.

You now have the terms and conditions that you flip to the tenant-buyer. At this point, the cooperative lease option sounds a lot like a sandwich lease option but instead of staying in the middle of the lease option, you get out quickly – as soon as you have a deal in place with the tenant-buyer.

You are mostly interested in the “option fee.” The option fee is what is paid for the exclusive right to buy the home for a set price during the option period.

With the seller, you’ve already set the sales price, the length of the lease, and the monthly rent amount. You are going to flip these parts to the tenant-buyer. The lease option fee is where you make quick money. You need the option fee that the tenant-buyer pays to you to be considerably larger than the option fee that you pay to the seller. What you are getting paid for is putting together the details of the lease with an option to purchase and bringing the seller and tenant-buyer together. In exchange for your option fee, you flip the lease option agreement to the tenant-buyer … and you are done.

A cooperative lease option flipped to the tenant-buyer leaves the seller and tenant-buyer to complete the deal that you put together, but you don’t need to stay in the deal until the purchase is completed.

After you have a couple of these under your belt, these can become almost as fast as flipping a cooperative lease option to another investor. Once established, you will soon have a list of tenant-buyers ready to buy every house that you have a seller for. The tenant-buyers on your list will already have a basic understanding of the cooperative lease option and will be ready to get the deal done quickly.

Cooperative Lease Option Entrepreneurial Version #2

As with most creative investment techniques, there are multiple ways of setting up these deals. If you already have a tenant-buyer, you can sell the option directly to that person. They are then working directly with the seller, and you move on to your next deal.

In some cases, you won’t have a tenant-buyer ready to go. This is when your efforts can be with other investors who understand sandwich lease options. You’re leaving at least two of the three sandwich lease option paydays for the other investor to collect. It’s up to that investor to put together a sandwich lease option to collect those two paydays. (See the sandwich lease material to fully understand the three paydays).

The process to put together a cooperative lease option for another investor is basically the same as putting one together for a tenant-buyer. You flip the detailed contract you have with the seller to the other investor. You’re going to collect your money from the difference in the option fee you pay to the seller and the option fee that you collect from the other investor.

You are also leaving this investor with the choice of finding a tenant-buyer for a sandwich lease or simply taking ownership of the house at a future date for the option price. Investors love having choices. This makes other investors the fastest path to your payday with a cooperative lease option.

Getting Paid for Cooperative Lease Options

Cooperative lease options require little or no capital from you as an entrepreneurial investor. The key is establishing a purchase option with a seller that is ‘assignable’ to a third party. As always, the details are in the contract when it comes to creative real estate investing. The person you assign the contract to is either another investor or a tenant-buyer. A key difference here is that in a sandwich lease option, you collect an “option fee.” With the cooperative lease option, you can call it a “finder’s fee” for transferring your option to another person.

When you do that, you are paid quickly and out of the deal quickly. This works for any investor and is especially attractive to beginning investors. When you can get out of the deal quickly, you don’t have any other expenses such as painting the house or making cosmetic repairs. Other investors understand this immediately. If the assignee is a tenant-buyer, you will need to explain that a lease with an option to purchase involves the tenant-buyer assuming more ownership responsibilities (repairs and maintenance). In any lease option, ownership responsibility is a ground rule that a tenant-buyer must understand from the start.

So, the bottom line with a cooperative lease option is that you pay a small option fee to the seller for an assignable option. You immediately sell it to another person for your profit. I love sandwich lease options, but I don’t know of a faster way to make a profit than with a cooperative lease option.

Cooperative lease options are NOT about licenses, down payments, credit scores, or borrowing money. Lease options are about TAKING ACTION. You can have your first cooperative lease payday in your bank in a few days. It works as a full-time job, a part-time job, a retirement hobby, and can lead to early retirement at age 35, 40, or sooner…

GET STARTED TODAY by clicking the Instant Access Links Below!

  1. Cooperative Lease Options to get started.
  2. Your Wealth Building Arsenal.
  3. Advanced strategies for Buying and Selling with Lease Options.
  4. Investing In Real Estate with Lease Options.
  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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