Buy w/ L/O and sell w/ Land Contract

If I were to take over a property with a lease option, would I be able to sell it on a land contract?

I am thinking it would have the same effect as a sandwich lease, but it would lock the sale into place rather than giving the T/B an option to buy.

Comments(4)

  • JohnLocke26th March, 2003

    tonyt33,

    A Land Contract is used when you have the Deed to the property. So you could not sell the property because you do not own it.

    If you have a Lease Option on a property you can only sell your position, which in your case would be the Lease with an option to purchase.

    Of course you can exercise your option pay off the house and then sell the house on a land contract.

    John $Cash$ Locke

  • tonyt3326th March, 2003

    Thanks John, you are by far my favorite guru!

    That was my assumption. I just wanted a more knowledgable investor to clarify.

    Are there any other exit strategies for whenever you take over a property with a L/O other than doing a sandwich lease?

  • JohnLocke26th March, 2003

    tonyt33,

    Get the Deed to the property, it is not that difficult, if you can get the house on an L/O you really can make it a Subject To deal.

    Not a big L/O fan as you can tell, but think about what I said.

    John $Cash$ Locke

  • bginvestor26th March, 2003

    John,

    There was a particular reason or reasons why you don't prefer L/O. Can you post it here again?

    Thanks,

    Bginvestor

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