Based on conservative anticipated appreciation rates and mortgage pay down, the total Return on Investment is 136% over 3 years or approximately 45% per year. I split the expected profit with the investor and guarantee his return. So if there is any problem with the Buyer, I take the hit. There are also several protection clauses we have to protect everyone in 3 years. We have a forced savings plan built into this program to protect the Buyer.
My investors love this program because they get the Another Type of Lease Option Deal.
I just signed another deal today where I was able to create a Sandwich Lease Option for myself by bringing in an investor. I used a high ROI to motivate the Investor to become the Seller in the Sandwich Lease Option arrangement.
Here is the whole process simplified:
1.We Qualify a Motivated Buyer for our Rent to Own program
2. Buyer works with our Realtor and looks at homes anywhere (MLS, FSBO, etc.).
security of real estate with a guaranteed high return on investment without any property management headaches.
3. Investor Buys the home the Buyer wants.
4. Investor Lease Options the property to me.
5. I Lease Option the property to the Buyer.
6. In 3 years (or sooner) I Buy the property from Investor and Sell it to Buyer (or I could assign it).