Plan of action regarding lease-option sandwich

[Mark Kindy]

I've put together a sort of list of how I think I should approach lease-option sandwiching. I'm starting scouting tomorrow, and just wanted some feedback on this process:

1) Look for houses for sale in the area
2) Determine sales prices, what prices I'm looking for, what it should be based on the area
3) Determine which are for sale by motivated owners
4) Figure out the paperwork necessary, how to do the paperwork, necessary to structure the deal how I'd want it. (lease-option)
5) Approach motivated sellers, make offers, explain goals
6) Complete the deal(s)
7) Put out advertisements lease-optioning out the house(s)
8) Take calls, do showings (as necessary), explain requirements to rent
9) Take applications, do background checks, possible credit checks
10) Rent out the place, take non-refundable payments, etc
11) File all necessary paperwork with courthouse (maybe this should be earlier?)

Meanwhile, I also need to:
1) Find ways to help renter/buyers build credit for mortgages, find financing potential, etc
2) Possibly find a property manager to manage while I'm doing classes

[Bill Gulley]

No, not really, you need to explain the whole strategy as the seller needs to know what's going on.

You'll also find that for the skinny few bucks that you get above a lease payment (unless your obligation is much lower) the outline who have above is a heck of a lot of work for what you have to do and continue to do in some cases as a long term relationship. In the future you will need the seller's cooperation.

There is usually a reason a property is not marketable, otherwise it would have sold. Unless you are a rehab type, only use marketable properties. That means the seller is motivated by personal issues more than problems with the property.

With the knowledge you really need to do these, you should be able to do less stressful deals. :)