sandwhich lease options

[Shawn Breeze]

When you get a lease with an option to buy from a homeowner and then find a tenant/buyer, it's sounds a little weird when you bring out a lease and an option to buy contract. For one thing, I'm not even the owner; so shouldn't instead of giving them a lease to sign i should have them sign an "agreement to sublease" since I'm not the owner?? If the tenant buyer wants a title search before he/she takes the deal, it will show that the owner is somebody else. Hopefully I wrote this well and everybody can understand what I am asking!

[Bill Gulley]

Hi Shawn, you bring up a very good point. In my area, there were several "investrors" using this guru method and they were convicted of fraud. I don't know what their contracts said, but basically, they were taking options and entering into sale/option contracts on property they did not own or have a vested interest in This was just one of the charges made.

It is much cleaner to simply do a lease agreement and then under another agreement, assign your option. In the assignment agreement you state your price to acquire the option, you do not have to mention specifically what your option price is.

Again, it is difficult to describe or advocate a certain strategy because the investors on BP are from all over the place. What works in one place may not somewhere else. We, including me, and I'm going to start watching that a little closer, tend to speak empathically, as if one strategy or custom is absolutely the way to do something.
Unless we are speaking of federal regulatory or legal issues, the rest is subject to local custom. Bill