Your Thoughts On Sandwich Lease Options, Please!
I have a home for rent and would like to do a lease option . I was told about an investor who lease option properties from owners and then turn around and sublease the properties to tenants. I may be able to get a tenant in the property quicker that way. I have never done this before and worry about the downside of this transaction.
Can anyone suggest the best way to approach this, if there is a best way. What type of lease should I have? What specific information should I include in the lease to ensure that the investor will do the right thing to protect me from any losses or suits etc? How can I make sure that my property is not trashed? The investor has nothing to lose, but I do. Any information will be greatly appreciated.
i am also newby but i read somwhere to make sure you have in the contract that you both have to agree on the tenant buyer. another investor told me that he writes postdated checks for 3 months at a time to help the sller feel more comfy about getting their payments on time every month
hope this helps
to get more info about the topic go to www.lease2purchase.com and on your own contract with seller put "and /or assigns" is what gives you the rigth to sell contact or sublease.
Would a regular, owner-occupied homeowner insurance policy even be valid when the owner has a home that is leased out TWICE? I think an insurance company would have a field day denying claims in this situation.
If buying and only had to choose between the three I would buy land contract. I would rather buy subject to because you get the deed.
I usually go with buy low sell high. You said you will neutral if you rent it out. Have you factored in vacancies? repairs? taxes going up? wear and tear?
I think that most of your L/O arrangements will not go all the way through to a closing. Thus you are in fact holding and renting.
LB
Could some of the more experienced investors give some statistics on their L/O property. What percentage actually close? Is there any one element that is used to consistantly close a deal?
LB