Quote from @Dennis McNeely: In a sandwich lease option, the investor exercises their option with the property owner to purchase the property when the tenant-buyer indicates they're ready to exercise their option and purchases the property.

I've done a lot of research and even worked on running numbers for certain options (just as an exercise), but I'm now looking forward to jumping in.

The exercise of underwriting helps you sift through those to find the 1 out of 10 that’s worth taking a closer look at.

Hi Treza,Not sure where you are in the process there, but when your ready to exercise financing options please reach out, it's very difficult to find a ground up program for inexperienced borrowers without having an experienced GC sign on the loan with you which in turn is not easy to find. 

Flagstar may exercise the "due on sale" clause if the name(s) of the buyer are not the same name(s) as the members identified as the owners of the LLC.

I guarantee you don't have the right to "sell" that property as you've done because the bank has a lien against that deed which must be paid if/when you sell, and you almost guaranteed to have language that you are supposed to notify the mortgagor if/when you sell the property so that they can exercise their due on sale clause. 

You are absolutely correct - I have never done this exercise. 

The lender at that point can exercise the Due On Sale and it becomes a problem for the subto buyer, who now has to find new financing or lose the house to foreclosure.

As I stated above, please exercise caution and make sure fully executed documents are received prior to wiring funds.

When you sell your old property you exercise your option and purchase the new property.4.