Sandwich Leases - Posted by k(FL)

Posted by Jim FL on August 08, 2003 at 13:11:10:

K,
Welcome.
Where in Florida are you? Just curious, because I’m here too.

I wonder, why would you pay option money at all?
I never put cash into a sellers hands, and in fact, lately, most sellers are paying me cash to take their houses, in one way or another.

If you feel the only way to get deals is to offer option money, lose that thought.
Going in with that in mind, your attitude will convey that, and sellers will expect it.

Present your offer as a service, which it really is.
You are offering a service of taking over payments, and maintenance responsibilities from the sellers, in exchange for the exclusive right to buy the property down the road, at a preset price and terms.

How many payments, and maintenance issues would a real estate agent cover while they market a house for sale at their expense?
None!
so , why should you?
Your “Service” is more than a listing, you are taking an interest in the property, as a principal in the transaction.

Just be sure to get a rock solid agreement, and appropriate security docs to protect your position.
Record a performance mortgage at the very least.
You can find sample ones of those online, by looking it up in a “Google search”.

Good luck,
Jim FL

Sandwich Leases - Posted by k(FL)

Posted by k(FL) on August 08, 2003 at 12:39:13:

For those of you that have done sandwich leases, what wording or clause have you used so that the seller waits for their option money until you find a tenant-buyer? I am reading the highly advertised FREE “How to create Multiple STreams of Income” from Finkel and Conti and they mention telling the seller that you will pay them the option money once you have found a tenant buyer. Why would the seller wait, and not move on to the next person that has the option money readily available?

also can anyone recommend services that they used to check potential tenants credit history?