How does the middleman (investor) exit out of the sandwich lease option once the investor finds an end buyer to close on the original purchase price between investor and seller? Would the investor have to use an assignment contract between him and new end buyer to collect the mark-up fee aka assignment fee at closing? I'm just curious because the original seller thinks the middleman is going to close on the property after the lease is up between seller and middleman.
Hunt down a book - "Investing in Real Estate with Lease Options and Subject To Deals" by Wendy Patton. Give it a read, and you'll have a fair understanding of the process.
In a sandwich lease option, the investor exercises their option with the property owner to purchase the property when the tenant-buyer indicates they're ready to exercise their option and purchases the property.
Oversimplifying it just a bit, the investor profits from: - a non-refundable option paid by the tenant-buyer which gives them the right to purchase the property within their option period - the spread between the rent paid by the investor to the property owner and the rent paid to the investor by the tenant-buyer over the life of the option - the spread between the price ultimately paid by the investor when they exercise their option with the owner and the price ultimately paid by the tenant-buyer when they exercise their option with the investor
In a sandwich lease option, the investor exercises their option with the property owner to purchase the property when the tenant-buyer indicates they're ready to exercise their option and purchases the property.
Oversimplifying it just a bit, the investor profits from: - a non-refundable option paid by the tenant-buyer which gives them the right to purchase the property within their option period - the spread between the rent paid by the investor to the property owner and the rent paid to the investor by the tenant-buyer over the life of the option - the spread between the price ultimately paid by the investor when they exercise their option with the owner and the price ultimately paid by the tenant-buyer when they exercise their option with the investor
Clear as mud?
I have never done lease options before, but I do want to try the sandwich lease option strategy.
Hunt down a book - "Investing in Real Estate with Lease Options and Subject To Deals" by Wendy Patton. Give it a read, and you'll have a fair understanding of the process.
Hunt down a book - "Investing in Real Estate with Lease Options and Subject To Deals" by Wendy Patton. Give it a read, and you'll have a fair understanding of the process.