Illegal in the State of Colorado?

[Susanna Carbaugh]

Hi all, I'm learning and have not done any deals yet; however, I was chatting with a friend who says that what I'm being taught is illegal in the State of Colorado.

Here's one of the approaches, maybe someone can help/clarify?

Home is over-leveraged, with a value of 200k and a loan of 220k. Payment is current, house in good condition and the monthly payment is $1,450 with 27 years left. I lease option for the loan balance for at least 10 years with rent equaling the monthly payment, starting when I find a tenant buyer. I then locate a buyer and assign my contract with the seller's approval and collect an assignment fee from the buyer.

Or, what about a sandwich lease purchase, where I lease purchase from the seller then turn around and lease purchase to a lease purchase buyer and collect an option deposit?

So confused, and grateful for any thoughts/advice!