Closing a Sandwich L/O

In a Sandwich L/O when my tenant/buyer excercises their option. Wont the Title company require me to have the funds for my, so called, A to B transaction?

How do I overcome this so that only my buyer will require the funds to purchase?


You can have the seller sign a performance mortgage or
record an affidavit, or have seller sign a blank promissory
note, when it comes time for the buyer to purchase the
house and when you know exactly how much your profit
will be, you can put that amount in the promissory note.

Have an attorney structure the promissory note so you
don’t run into any problems.

Also, I don’t like purchasing a house via a lease/purchase.

I would rather purchase via a delayed closing contract,
you have more protection and control of the deal, in my
opinion. Plus it looks better when you present it to the

Here’s a delayed closing;

You simply have a Standard P&S agreement, with all of
the normal stipulations that will protect you as an investor
buyer, and in the closing date section, you put 1, 2, 3,4, 5
years or however long you negotiated.

This method will also help you get around the no Lease/option
laws in Texas, for those of you in that state…

Whether or not the title company works cooperates with you or not depends upon their policy. If not, the first thing you can do is shop around for one who wants your business.
Another way is to record a lien via an option and then release the lien when you are paid. There is very informative thread about this technique here:, and here:

AJ290, There’s some pretty good stuff in that post. Thank You,Herbster

A simple way to do the deal might be to sell your option to the sandwich lessee and then let him close the deal. Unless you have a real sharp escrow officer some of the unorthodox methods could blow up in your face. My lease option report might be of help. Its at the RE blog link in the sig below.
Good luck,

Jeff, could a delayed closing blow up in your face if your sandwich lease decides not to exercise their option? Are you still stuck to that closing date?

First find a title company that doesn’t require you to have funds.

If that doesn’t work, check out your contract. Do you have the full right of assignment? Meaning do you have the right to sell the property at anytime? The seller can grant you this right. Talk to your attorney about it.

If that doesn’t work. Let the seller close directly with the buyer, but make sure to draft a invoice between you and the seller. Talk to an attorney to make it binding.

If that won’t work, try assigning your contract to the buyer for the amount of your profit spread less any other costs.

With that said, don’t let this hold you back. It sounds like the Title company hasn’t said this yet and that you might be thinking ahead. Just don’t let it hold you back. Deal with it when and if it comes.

Good Luck!

J.Lamar Ferren