Sandwich Leases

I get a lot of calls lately concerning doing "Sandwich Leases" so I thought I would throw out some basic information on them.

One thing to keep in mind is that the property owner dictates the rules. they have in essence become the bank and we all no the bank makes the rules.

A lease in which a party rents property from the property owner and then subsequently leases it out to another tenant. In a sandwich lease, the primary party is both a "lessee and a lessor," meaning that the party both collects rent and pays rent. Not all property owners allow this sort of arrangement.

A sandwich lease involves a party sub-letting what is already being sub-let. This type of leasing arrangement may come about if the primary party signs a long-term lease on a piece of property, but is either unable to use all the space or is looking to vacate.

Randy Bailiff
Dean Graziosi Real estate Investment Coach