What is a Master Lease Option?

The master lease option is based on the very popular lease option real estate investing strategy that is primarily in residential (1-4 units) real estate. Only the Master Lease Option is for commercial real estate. Don’t freak out!

Commercial investing is simple once you master the basics and realize that you can acquire properties with no cash or credit just like in residential investing.

Here’s how a master lease option works:

First you need to understand that when you buy commercial properties, you are buying based on cash flow. So obviously this strategy will only work on income producing properties such as multifamily (apartment buildings), office buildings, mobile home parks and senior assisted living.

When you find a property that is a good candidate for a master lease option (more on this later) you execute a master lease and an option agreement. The master lease means that you are now sub-leasing to all the current tenants.

Once you have a master lease option, you can 1) hold for the long term preparing to execute your option and buy the property at some point in the future or you can 2) flip your option to another investor. (This is my favorite fast cash strategy.)

These types of deals are easy to find once you know what you’re looking for. The Master Lease Option eliminates most of the risk and puts cash flow in your pocket with no cash or credit of your own into the deal. For this reason those who want to cross over to commercial real estate investing should master the Master Lease Option!

Want to learn more about my Master Lease Option Method? Click Here!