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- No Repairs:
$5/SF 2 - Sandwich Lease Option
OPTION
OPTION 1 - Cash Offer - Cosmetic
(Perfect Tenant Program)
Repairs: $10/SF
After Repair Value / Zillow $70,000 Market RentRehab
- Full-Gut $800
Discount (% of ARV) 70% - $20/SF
Min Monthly Gross Cash Flow (25%) $200
- (For rentals -
Square Footage 980 Min % Equity 15%
varies by
Repairs (price per square foot) * $10 Min Gross Equity
market) $10,500
Total Estimated Repairs $9,800 Number of Years 5
Wholesale Fee $10,000 A-B Option Consideration $500
A-B Purchase Price / Offer $29,200 Repairs $9,800
OPTION 2 - Sandwich Lease Option
OPTION 1 - Cash Offer (Perfect Tenant Program)
Purchase Price (all cash) $29,200 Option Price $49,700
Lease Option Rent To Seller $600
Option Deposit $500
Number of Years 5

*** NOTE 1: These calculations are only approximations, designed to give the seller various options on how you might be able
OPTION 3 - Lease Option Assignment
Price Seller Wants $70,000
Market Rent $800
Min Term (years) 2
Option Consideration to Seller $10

OPTION 3 - Lease Option Assignment


Option Price $70,000
Lease Option Rent To Seller $800
Option Deposit $10
Number of Years 2
- automatic extension if it doesn't appraise

s on how you might be able to buy their house. You must do your own due diligence and check comparables.
eppraisal $76,917
realquest $89,000
zillow $101,000
Average $88,972
ARV $225,000
% 15%
Option A-B $191,250
Market Rent $2,200
% 25%
Cash Flow $550
Rent A-B $1,650
A-B Term 10 years

B-C 24 months
Option Price $238,500 $250,000
Rent $2,200
Term 2 Years
Sandwich Lease Option Profitability
Option 1
INCOME
Term (months) 36
Current Value $125,000
Lease Option Premium 5% $6,250
Expected Appreciation 3% $11,250
Expected Sale Price

Gross Cash Flow Per Month $ Joe McCall:


275 $9,900
Always try to get
Equity From Principal Pay Down $ -
at least a 6%
$0
Option Credits From Seller $ discount- from $0
Total Other Income their asking price
since they are
not having to pay
PURCHASE COSTS a realtor
Purchase Price (A-B) commission $125,000
Rent Credits to TB $ - $0
Misc Costs Thru The Entire Transaction 1.0% $1,250
Purchase Price

TOTAL APPROXIMATE PROFIT


% Profit of Current Value
% Current Equity

* Note: you may have to pay Realtor commissions out of your pocket early, but it is really the seller paying them. T
This will not affect your bottom line profit.
Option 2 * Sometimes, you need to give the seller more options

36
$125,000
5% $6,250
3% $11,250
$142,500 $142,500

$ 275 $9,900
$ - $0
$ 200 $7,200
$9,900 $17,100

$115,000
$ 100 $3,600
3.0% $3,450
-$126,250 -$122,050

$26,150 $37,550
21% 30%
0% 8%

, but it is really the seller paying them. They will be part of your Option Consideration, and will be credited back to you at closi
ve the seller more options

redited back to you at closing.

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