posted August 20, 2003 10:29 AM            

A sandwich lease is just a lease (sublease) of part of the original lessees interest in the property. Many lease agreements prohibit subleasing and some grant the right to lessees subject to lessors approval. If subleasing isn't specifically prohibited or restricted then there isn't much a lessor can do about it providing the property is fit for the sublessees intended use and the sublessee observes all the other tenets of the underlying lease. Can't see there would be any difference in a lease option which is just a lease for a period of time with the option for the lessee to purchase the property within a timeframe and at a previously agreed to price.

It certainly could be advantageous to tie up a piece of underpriced property on a lease option for a period of years, sublease (sandwich lease) the property out to a tenant or tenants at a higher rental rate to pay the underlying lease payments and a profit as well while waiting for property values to rise in anticipation of exercising the option to purchase. Lease options are also a method to control property with no money down while waiting for values to rise. It's also a way to get around the due on sale clause contained in almost every mortgage document because there is no sale until the option is exercised and that might be many years into the future. At that time, the lessee has the right to exercise the option, and hand the property over to a new buyer at a higher price. In all cases, the lease should be recorded to protect the lessees interests in the property should the lessor default or die. Creative financing sells a lot of property in America but there usually won't be a Realtor involved unless the Realtor is one of the parties to the sale.

is this what you were referring to? If not, I'm always interested in new wrinkles for creative (no money down) financing. There are people who constantly dream up new ways to get around the due on sale clause or avoid the usual buyer equity requirements institutional lenders impose.

posted August 20, 2003 10:40 AM              

I had to put down a pretty hefty down payment. They say condos are a little different in that regards from a house. Is it true Jw?! (now she asks)

I paid for it all. OH! Also only on a secretary salary.

posted August 20, 2003 01:35 PM            

It may be true in some areas but not where I live. The down payment requirements are the same for single family homes and condos. Condo units are very popular along the beach areas because of the high land values and the fact many dwellings can be built vertically on a given amount of land. Gulf Blvd which runs along the Gulf of Mexico is a solid line of Condo developments for 15 miles with very few single family homes.

Well, for making that larger down payment, you got the benefit of smaller mortgage payments----a trade off.

Hey, I think it's great you are 24 and already a property owner. It's the best investment most people ever make as values keep increasing. Hope you have a low interest loan. If not, it might be beneficial to consult a mortgage lender and find out if you could lower your interest payment enough to make it worthwhile to refinance.

Yep, it can be done

posted August 20, 2003 02:21 PM              

I don't know if it's so much the age thing, as it is the secretary salary that blows them away

Yeah Jw, I have a pretty good rate. I also seem to have pretty good credit. Bought my condo and jeep without a co-signer.

The way it worked here (checked 4 different banks) I had to come up with 20% of the loan amount down. Plus, they wouldn't do the first home buyer thing on condos either.

The down payment did drop the mortgage considerably. It's also in a good area. Lake front. Not the beach, but as close to water as I could get.

They do offer all sorts of loan options for "house" buyers. As a matter of fact.. I have a friend that just bought one with 0 down.

I didn't feel that I needed a house. Not enough time to keep up with all of the required maintenance.

posted August 20, 2003 05:29 PM              

Every one I meet is either living at the beach, or just about to move there.

The Scorp at my work took up surfing, and after 5 months rides a shortboard regularly... And she's the littlest cute dainty thing... to see her out there battling the locals, currents, and swells just seems unbelievable...

And one scorp I dated loved to wrap seaweed around herself in the water, and walk around the beach with it still wrapped around her, she said, "I Love this stuff!"

She did this the first time we ever went to the beach together... I knew I was in for "something" when I saw this behavior....

posted August 20, 2003 05:37 PM              

Geez, I'm a Pisces and you're acting more pathetic then me. Scorpio this, Scorpio that and now you're going into Pisces territory. Give me a break.

Scorpios! PUH-leez, feel the wrath of the mighty fish slapping your face.

posted August 20, 2003 05:57 PM              

-StarLover

posted August 20, 2003 07:40 PM              

I don't know why I tolerate you, I do it for the sake of this site, and what it stands for. I really was joking with you, I thought you had enough sense of humor.

But I do have enough power to control myself. You don't think I have sharks in my soul? Come over here and try them.

Do you think I'm afraid to end this all right now? Get ready for my tsunami.

-StarLover

posted August 21, 2003 09:27 AM              

My Libra moon is coming out here...

Hey you two, kiss and make up pleeease

I'm actually pretty surprised in how well we all seem to get along on this site. I mean, there is a lot of different sign combinations mixing around

As for a sign that's hard to figure out... yeah, scorpios are... however, pisces and aquas are tricky ones too.

posted August 21, 2003 12:58 PM            

Update on neighbor boy. Persistent fella and bible camp must not pack the punch it used to . He went and called Live Sex Talk to the tune of $588.00 on his moms phone bill . I`m waiting to see if my phone was as an easy target am my computer was. He said he didn`t and so far he hasn`t lied once. God he`s a brave soul Awaiting to see what mom does about this infraction.

juniperb