Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 8 years ago,

User Stats

41
Posts
2
Votes
Brandon Stewart
  • Wilmington, DE
2
Votes |
41
Posts

Why assign a lease in a LO Sandwich?

Brandon Stewart
  • Wilmington, DE
Posted

From what ive always understood, when doing a lease option sandwich, you sign a lease option agreement with the seller, and then you find a tenant buyer and have them sign a separate rental agreement and a separate option agreement.

I spoke to an attorney last month and he was saying something about assigning the rental agreement that i have with the seller, over to the tenant buyer. At the time i really didn't think we were on the same page, but while readying wendy pattons book on sandwiches, she said she includes a clause in her rental agreement which says "Tenant will be assigning this agreement to another party, but is still responsible to the owner per this agreement."

After thinking about it for a little bit, it makes sense to assign the rental agreement IF i was also assigning my option to buy, but its still unclear.

I was hoping someone could help me figure this out, or even better, point me to a good source of information that goes over the tiny little details of LO sandwich paperwork and how settlement works with them.

1) Is it necessary to assign a lease even if i was doing a double closing?

2) Why and when would someone assign, and would that affect your cashflow?

I feel bad for asking all these questions, but i'm really looking forward to the day when i can finally give back to the BP community.

Loading replies...