Hi there,
On page 378 of Steve’s second book he mentions a complex strategy called ‘sandwich-lease options’, I’m not necessarily interested in using them, I’m just curious. Could someone let me know what there all about? . Thanks!Dan[strum]
Thats when you take up a lease option on the house and then do the same thing, you sell an option at a higher price on the same property for slightly more and you charge a slightly higher rent.
The result is a option fee an option fee to you and a margin on the rent.
Sounds good in theory, but may be hard to do – but not impossible.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Quite hard to do!
Make sure you know your market before doing a sandwich. ie have buyers lined up before you negotiate the lease option with the owner… OR negotiate the lease option in such a way that you don’t start making payments until you have secured a buyer.
I currently have two houses secured under lease options and have had for a number of months. This has put me in a financially distressed position because potential end purchasers have shown initial interest which has then waned.
I am now looking to sell or rent the properties urgently, and then start again.It is not impossible, but it is a complicated strategy… and it can be a very low money down strategy.
BE VERY CAREFUL!
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