Forum Replies Created
Again I would suggest a sandwich lease-option (SLO) agreement as if you use vendor terms agreements to acquire and re-sell you have due on sale clauses that effects the resell of the property and maturity upon the sale being finalised…
These are eliminated entirely using a correctly structured SLO as you have the right to call the option and you’re not entering into a sale agreement.
I looked at both a sandwich purchase and sandwich L/O about 12 months ago and I suggest you be aware that there are some fairly sizeable problems using the purchase agreement.
TB
Hi retire,
The simple answer is yes!
I would however use a lease-option agreement rather than an installment sales contract to formulate this approach. The terminology for what it’s worth is called sandwich financing and is an easy way to create cashflow.
I have completed a few of these but none have matured as yet, the jigsaw you have as a finance transaction must work for all parties, thats the key and is also the hardest part of making the sandwich work.
Good Luck
TB
Dear Kttm,
Steve’s summary is perfect! I would also go to your bank(s) with an investing (business) plan with what your short and long term strategy is. Whoever can come to the party can refinance your exisiting portfolio (without cross-tieing your loans) and pick up new business for themselves as a reward. Of course do your own due diligiance on the exit and entry costs of the facility.
Failing this try a mortgage broker I would always suggest you find someone at “your level”.
Good Investing
Tony Barton
