If you are sandwiching as a RE Investor, the positives are:* not a lot of money out of pocket to get the Lease Purchase Agreement in place from the seller* complete control over tenant choice* can pick over a lot of nice houses* can create up front cash (tenant's move in option consideration)* can create monthly cash flow (difference in rent paid to seller and rent received from tenant)* can create a large back end (difference between sales price from Seller and Tenant)The pitfalls are numerous also:* risk that you need to evict the Tenant and still pay the PITI payment to the Seller.* risk that the Tenant sues you for Equitable Interest (to get consideration payments returned)* risk that the seller dies or can not be found at the time of exercise of option.* risk that the Seller does not pay the bank or property taxes* risk that the Seller gets sued and there is a major lien on the house's title* risk that the house depreciates so much it is "under water" - owed more that what is appraised for.* risk that the buyer can not get financed (if that is even important - some REIs don't care).That is what comes to mind off the top of my head.

But are you saying that the ones we have in escrow will likely fall out as this is the NEWEST in lending regulations?

So, you want to be sure whatever deals you make are still good deals if you have to take the property.There are state (usually) regulations on lending.

I've heard horror stories of this happening to numerous foreigners investing here in the past.

Here, it's not regulated by state law.For sales, many agents have been insisting on 6 mo to year listing agreements, but are willing to negotiate somewhat.ofgift

There are numerous houses that can be bought in the 90-100K range that will generate that sort of rent.

We are so regulated by Statutes in FL.....whether it's 718 or 720.

Just about every portion of real estate investing today has been regulated, lawed to death, rules, etc. etc. etc. etc. and it has made it much harder for the honest RE investor to make a buck - all because of one or two crooks/idiots in each instance.Today, you can not assign a contract to another buyer and have their lender include the assignment fee in the purchase.

“Private placement†is the term used in the securitiesworld to define a non-public offering of an investment vehicle.Securities regulations allow exemption for selected types of privateplacements.

I'm wondering if someone can help with some input on these numers here.I am dealing with a possible wholesale deal that I am working on right now.