Sandwich lease options

[Nate Roman]

What is a sandwich lease option, and how exactly does it work?

[Wendy Patton]

When you are doing a sandwich lease option as an investor YOU should always make sure the mortgage payment is made directly to the lender. I make my payment out to the lender and not the seller. I got burned 1 time on this years ago and now this is the way I do them.

Even if you have the seller pay the lender directly you will want to make sure they are paying it on time. Make sure you always get a mortgage authorization filled out so you an always track it with the lender. Then make sure your contract has a provision to start paying it directly if they do not pay it on time.