How to Structure a SANDWICH Lease Purchase Deal

How to Structure a SANDWICH Lease Purchase Deal

1. Introduction to Deal Structure Sunday:

   • Watch the video from Smart Real Estate Coach on YouTube to learn about structuring a SANDWICH lease purchase deal.
   • The video features Ken, a first-time investor who successfully closed a creative financing deal.

2. Background of Ken:

   • Ken shares his journey from being an account manager to venturing into real estate with the help of the Wicked Smart Community.
   • He explains his decision to join the community for support, guidance, and hands-on experience.

3. Prospecting and Deal Discovery:

   • Ken primarily focuses on expired listings for prospecting.
   • He identified a condo property in Myrtle Beach through an expired listing that the sellers had previously tried to sell conventionally.

4. Deal Structure Overview:

   • The deal involves a SANDWICH lease purchase agreement where Ken acts as the middleman between the seller and the end buyer.
   • The agreed purchase price is $800,000 with a non-refundable deposit of $8,699.

5. Financial Details of the Deal:

   • Monthly payment breakdown includes PITI ($3,563) and HOA fees ($950) that will be passed on to the end buyer.
   • The property will be rented out for $3,750 per month, excluding taxes.

6. Projected Cash Flow and Paydays:

   • The projected cash flow over 36 months is calculated at $945 per month.
   • The total payday for Ken is estimated at $55,000 by the third month of the deal.

7. Lessons Learned and Coaches' Involvement:

   • Ken credits his success to the support and guidance of his coaches within the community.
   • Coaches provided valuable insights and assistance throughout the deal structuring process.

8. Closing Remarks and Event Information:

   • Ken expresses gratitude for the learning experience and support received from the community.
   • Viewers are encouraged to subscribe to the YouTube channel for more deal structure insights.
   • Information about upcoming events like QLS Live in Boston is shared for networking opportunities.

By following the steps outlined in the video and understanding Ken's journey, you can gain valuable insights into structuring a successful SANDWICH lease purchase deal in real estate.