??? Sandwich Lease Option ???

Can anyone explain the "Sandwhich Lease Option" concept to me. I overheard this in someones conversation in passing and was just wondering?
confused

Comments(3)

  • travisluedke22nd November, 2002

    You must read Claude Diamond and or Ron Legrand. They are masters at lease options. I believe having both of their courses will give you an extremely well rounded view of the subject.

  • DaveT30th November, 2002

    If you already understand what it means to be a buyer in a lease option agreement, then you should also be able to see the same deal from the seller's side.

    Now, when you lease option a property from a seller, then turn around and "sell" the same property to your buyer on a lease option, you have "sandwiched" yourself between two lease option transactions. When you are in the middle like this, you are said to be in a "sandwich lease option."

    Hope this helps.[ Edited by DaveT on Date 11/30/2002 ]

  • allandinger15th October, 2003

    A "sandwich" lease option is an arrangement where an investor leases a property with an option to buy from a homeowner, then subleases the property to a third party with an option to buy; the investor helps the tenant obtain a loan, then exercises his option to buy from the owner and simultaneously re-sells it to the tenant in a double-closing.

    Pretty close to what DaveT said but worded alittle different for you, hope it helps.

    Allan Dinger

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