MichaelC 160 Report post Posted May 12, 2009 Jason, our goal is to make a profitable deal. That profit varies from deal to deal, both in the amount we earn and where it comes from. If you are concentrating on sandwich leases, for example, then there are three profit centers: option consideration, monthly cash flow, and the back end profit. That last one, of course, doesn't materialize until the t/b exercises their option. If they do, you pocket the spread between what you owe the seller and the t/b owes you. If they don't exercise their option, assuming you have more time in the deal you can repeat the process and hope this next t/b follows through. Keep in mind you also have the choice to buy that property at any time, also, if you deem it to be a good long term buy and hold prospect.As for the equitable interest argument that some claim is fact, I say hogwash. In 15 years of doing deals I have yet to have a t/b try and claim this against me. If it ever happens I will trust my paperwork and attorney to cover my backside. In the meantime, I don't look over my shoulder and play scared. By the way, the next time someone tells you about some equitable interest horror story, please ask for the details and specifics and court records. I would love to see this firsthand. Share this post Link to post Share on other sites
