Lease Option w/Right to Sublease - Posted by Ed S

Posted by MrWi on July 22, 2003 at 14:04:46:

I am in the process of closing on a deal where I did exactly what the caller is proposing. I had a tired land lord who just wanted out. I took over the existing lease and tenants with 3 months left on the tenants lease. The tenants wanted to move early and I had another couple that wanted to move in so I let the original tenant go and put the new couple in. The new couple ended up getting transferred by the job, so I just started to market the house and have a buyer. SO yes I did lease and then sublet it out and now have a buyer that is buying out everyone.

Lease Option w/Right to Sublease - Posted by Ed S

Posted by Ed S on July 22, 2003 at 13:26:27:

I own a property which I am trying to rent out. Just got a call from someone offering me a long term lease with an option to buy at end of lease term. The person wants to sublease my unit to others under lease options terms (in other words, the tenants will have the option to buy my property in a few years). Has anyone done this type of thing before? On the surface it all seems pretty innocent. Any sharing of wisdom from the experts would be greatly appreciated.

Re: Lease Option w/Right to Sublease - Posted by Brent_IL

Posted by Brent_IL on July 22, 2003 at 19:51:13:

If you are going to do a L/O, and you read this RE board, why do you need the middleman?

Re: Lease Option w/Right to Sublease - Posted by Brian Beard (MD)

Posted by Brian Beard (MD) on July 22, 2003 at 14:32:39:

I’ve picked up a few homes on a sandwich lease option which you are speaking of. Basically if your willing to sell your home at todays value then it should work fine for you. The investor makes their money on setting a price at todays dollar (or below) and sells it at the appreciated future value.
When I pick up properties like this I take over all maitenance/landlording responsibilites so at least that should not be of any future concern for you.
It all depends on what you want to do with the property.

Have a good one,
Brian Beard
Priority 1 Properties