Sandwich lease exit plan- - Posted by Adam

Real Estate Investing
1

Posted by Adam on June 20, 2001 at 15:41:52:

I was trying to phrase it as a hypothetical situation. I am getting ready to put a deal together and I just wanted to have the bases convered and get some more advice as to what happens at the end of the term.

I do appreciate the advice you gave. (as do I appreciate the advice you give others that I read on this forum. It helps us rookies out tremendously!)

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Sandwich lease exit plan- - Posted by Adam

Posted by Adam on June 20, 2001 at 13:57:28:

Here I am in the middle of a sandwich lease. I have a tennant/buyer ready to close. At that time I will also close with the seller from whom I originally L/O’d from. My T/B is buying from me for more that I am buying from the original seller, so I will come out ahead. My question is this-

How does the original seller’s deed pass from him (through me) and on to me T/B to complete the deal? Can I close on a house that I don’t actually have the deed for?

Any help would be appreciated.

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Re: Sandwich lease exit plan- - Posted by SteveS(CPA)

Posted by SteveS(CPA) on June 20, 2001 at 15:46:44:

Adam,

There are several ways you can structure the deal so that it will pass between you and the seller without much hassle, one is to close both at the same time or you can have a right to assign the property over to your buyer. It’s a good question and I wish I had more time to answer it fully but you do have some options.

Hope this helps

good luck

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Re: Sandwich lease exit plan- - Posted by Jim IL

Posted by Jim IL on June 20, 2001 at 15:19:57:

Adam,
No offense, but a little late to ask this question isn’t it?
You already entered into an agreement where this would happen, so you should have KNOWN from the start that this can and does happen every day.
The good news is that, “Yes”, you can close this way.
You may want to direct your buyer to a lender who does allow this however.
Call some local RE attorney’s and title companues and see if they can handle a simultaneous close.
Thos who say, “A what?” or “No, that is not legal” hang up on, and keep calling. You will find some who can and will.
Then get some references for good lenders and get the deal closed.
If the buyer already has the loan ready to close, then just have your attorney and/or title company get the closing set up
Then just show up, sign what you are told to sign, and collect your check.

Hope this helps,
Jim IL