Posted by B.L.Renfrow on August 30, 2003 at 12:57:10:
I’m not as big a fan of sandwich lease options as I used to be because of the investor’s lack of control over the deal. However, the risks can be somewhat mitigated. I suggest you search the archives for “lease option” and “sandwich lease options” and spend a couple days reading everything that will come up. Also, read everything in the how-to, money-making and success stories sections about lease options. Then your questions should be answered.
In a nutshell, you had better be clear with the seller that your intention is to sublease and make a profit. After all, why would you be involved otherwise?
You are correct; most ordinary landlords wouldn’t be interested. You are looking for the particularly motivated landlord.
Why would a seller agree? Usually because they don’t want to deal with the usual landlording hassles and uncertainties, they have had negative experiences with tenants previously, or they want an immediate solution to whatever their problem is.