School me on master leases/sub-leases

[JD Ruiz]

I was reading through a discussion recently where one of the contributors mentioned making money through master leasing or sub-leasing. It sounded like a really good way to benefit from cash flow with minimal risk and very little skin in the game.

From what I gathered, the point of this strategy is to lease a property from someone with the option to sub-lease, then re-lease the property at a higher rate and pocket the difference.

Can someone out there break down the strategy for me? Is it really as good as it sounds? Are there any legal considerations?

Thanks all!

-JD