Why assign a lease in a LO Sandwich?
From what ive always understood, when doing a lease option sandwich, you sign a lease option agreement with the seller, and then you find a tenant buyer and have them sign a separate rental agreement and a separate option agreement.
I spoke to an attorney last month and he was saying something about assigning the rental agreement that i have with the seller, over to the tenant buyer. At the time i really didn't think we were on the same page, but while readying wendy pattons book on sandwiches, she said she includes a clause in her rental agreement which says "Tenant will be assigning this agreement to another party, but is still responsible to the owner per this agreement."
After thinking about it for a little bit, it makes sense to assign the rental agreement IF i was also assigning my option to buy, but its still unclear.
I was hoping someone could help me figure this out, or even better, point me to a good source of information that goes over the tiny little details of LO sandwich paperwork and how settlement works with them.
1) Is it necessary to assign a lease even if i was doing a double closing?
2) Why and when would someone assign, and would that affect your cashflow?
I feel bad for asking all these questions, but i'm really looking forward to the day when i can finally give back to the BP community.