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Updated about 5 years ago, 11/06/2019
Owner financing vs Sandwich leasing
I have been going over many different ways to finance my first RE deal. I am trying to get more specific with what I want to focus on. I have just been practicing analyzing deals off the MLS, listening to podcasts, and reading up on BRRRR and the ins and outs of being a landlord.
I do not want to stall my investing with a buy and hold. It would take me too long to save up for more investments. So I was watching a sandwich leasing video by Kris Krohn on YouTube and kept on hearing about how many of the guests on the BiggerPockets podcast started with owner financing to get the ball rolling with their RE investing. Is there a difference between Owner financing and a sandwich lease option? It seems that in both. You as the investor are under contract with the seller and your tenant is under contract with you. With the Seller financing you have longer terms initially for the mortgage. While with the sandwich lease you are under contract for a shorter period of time? Does anyone have experience with one or both of these strategies. I plan on starting locally with San Antonio and managing the properties myself. Thanks for y’alls help.