I usually do basic wholesaling, but recently got into sandwich lease options. I got a call from a very motivated seller and gave him two options: buy at a deep discount or buy with terms and terms it was. Located a tenant buyer 3 weeks after and had a win/win/win.
If anyone has any questions, please let me know!
- buy at a steep discount
- lease option sandwich
- lease option assignment
Remember, for the sandwich, there is a risk the TBer will not pay and you have to pay the seller for 1 - 2 months. Expenses such as damage, clean up, re-rent marketing, legal eviction, etc. Have a fund for that.
With the assignment you are out of it.
Best of luck!
In Sandwich lease option, who is usually responsible for tenant damages and repairs?
The end tenant/buyer is, but if they bail, then the person that was in the middle, (the investor) has to take care of it, as they are essentially subletting.
That's great @Tarek Wazzan ! I'm in TX, and if you need to get your buyer into credit improvement and help re-establishing credit let me know and you can use the people we've used for almost 10 years. She can also do the final financing. Just be sure to stay on the buyer like white on rice as far as getting them into credit improvement and reestablish credit with a few secured cards.
@Brian Gibbons Thank you so much for the info. Hey Brian, do you do cooperative lease options in other states without going to see the house or meet with the sellers? I really want to try it, by setting up a teams - an agent and a mortgage broker. Does it actually work?
Hi John, thank you much. please send me your information and my future tenants, i'll send them your way.
@Tarek Wazzan Hi Tarek, Congratulations on doing your first sandwich lease option! I'm also working to do lease options. I thought the L/O strategy would be more simple to start off with instead of flipping REOs or HUD houses.
How did you find sellers that were willing to do a L/O with you? Did you run into problems with sellers wanting to see your credit report or you sub-letting to a third party? If so, how did you handle this?
@Larry N. Even if you are doing a SLO, the owner shouldn't ask about your credit report, if you are explaining from the get go that neither you or your company are taking possession.
When I talk to owners, they are fully aware that I am assigning my contract. ( I only assign).
Finding sellers isn't that hard, as you are offering them top dollar with no commissions. (on an assignment)
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