Show the seller what he will receive over the period of owner financing --if seller took back $100,000 @ 8% interest, interest only payments, paid monthly with a balloon at the end of 60 months - would look like this 8% x $100,000 = $8,000 a year ($666.66 a month for 60 months = $40,000 plus the principal balance in a balloon payment of $100,000 - so the seller get his equity of $100,000 plus $40,000 in interest) these facts can be very motivating.Seller needs to know about capital gains and the benefits of seller financing and installment reporting.Seller can use the financing note as a down payment or other real estate or sell the note at a discount.Seller can split the note - 4  $25,000 notes or 2 $50,000 notes - again these notes can act as down payments  deposits on other real estate, sold or retained as monthly income or given to relatives as gifts.When seller financing is accepted - you may want to consider the following agreements or clauses:Always build in a discount in the event you pay the note off early (big savings here).Always make the mortgage a First Subordinated mortgage - this means that if you refi - you can place the seller's mortgage in 2nd position - since a lenders usually wants to be in first position.Make that mortgage fully assumable with release of liability - that means when you sell the property, your buyer can assume it, and you are released from the obligation (this is good)When selling the property - you can do a wrap-around - meaning if your interest to the seller is 5%, you can wrap the mortgage at a higher rate - like 10% - that means you are making 5% on money you owe - this is sandwiching the mortgage (this is good - never stop negotiating)Build in a clause that allows you to walk the mortgage to another property with equal or greater equity - this is called substitution of collateral.

Bring goodies drinks cookies Sandwich's and other delectable snacks to our open houses.7.

If people made 10 dollars an hour before and the sub sandwich eating out was 15 dollars for 2 people and now you make 14 dollars an hour but that sub sandwich meal for 2 is 30 plus dollars you didn't go forward you went backwards.

The only way I would touch this deal is as a sandwich lease option or something similar where someone else was holding all the risk.

SITE=SHOREW&ScreenID=LISTING_DETAIL_PRINT&cd_MLS=1339813#.UgZY39Wnaph I called the Realtor and that listing expired.Anyway, she is motivated and just wants to be done with it..She isnt interested in renting it because of the headaches..If i cant flip the option, I will renegotiate a Lease Option and then do a sandwich lease option.Any advice on how to market it to a buyer?

Lease to owns, sandwich leases, fix and flips etc.Take Care,Quentin

It would have to be a helluva positive monthly cashflow to consider buying in my opinion, and I would probably rather just sandwich lease-option the property.

I too like the three legged approach...rentals, flips, partnerships and sandwich lease options.  

I've put together a sort of list of how I think I should approach lease-option sandwiching.

The strategy is called "Sandwich Lease Purchase" or "Sandwich Lease Option".When it is all said and done, the investor will walk away with a good amount of cash.