Investors working with Realtors
Hello,
I am a real estate investor just getting started. I recently read a book that focused on working with Realtors in the area of lease-purchase deals. The idea is that I as the investor would contact Realtors, and ask the agent to provide leads, which would be sellers who have had their home on the market for a while and it hasn't sold. The seller is considering just renting it out. Maybe they don't have to have the proceeds in oredr to get into another house, like they own tow homes, are a landlord, it's a rental house, etc. I do a lease purchase with the seller with me as the lessee. Then I find another buyer who will pay me an option fee up front and also lease purchase the house from me, with me as the lessor. I pay the realtor a commission up front, using in part, the option fee the buyer paid me. The buyer gets credited for the option fee on the back end when they purchase. The commission I pay is also credited to me as a portion of the final sales price when I buy it at the end of the lease.
Does any of this sound plausible, and have any of you done this with investors, especially in a down, buyers market? Thanks for your help, I am trying to think creatively. Mike
Yes, what you are talking about is a "sandwich lease-option". Wendy Patton teaches that and has been successful with it. It definitely works, but as you can imagine there is lots of coordination involved and the seller has to be motivated (not too hard to find in this market).
I second what gfw said. There is a lot of work and coordination involved with the sandwich lease option, but if you are willing to stick with it, you will probably have some decent chances of it being successful for you.
