Quick Tip about Working with Sandwich Lease Options

A common reference in real estate is a Sandwich Lease Option. This really means that we have purchased the home using a lease option and are re-leas optioning the property to another buyer.

Most likely, and especially in today’s market, you should be able to purchase a home below market and even use a lease option to do this.

When you purchase using a lease option you want as much of your payments to go towards the purchase of the home later. I would suggest 20% or higher if possible.

The option credit that is given when you start a lease option should be as small as possible. I would look at about $100 if I could. The less money out of my pocket the easier it is to do real estate.

The purchase should be as low as you can get. If you can get the purchase at what the sellers owe, as long as there is equity, you could have a great deal.

When you sell the property you should give the lowest amount of the lease payment towards the purchase, ask for the highest option credit and sell for market value. When you do this you can set yourself up to make large amounts of money easily.