Escrowing Deed with L/O?

[PW77]

Just wondering how many seasoned RE Investors doing sandwich L/O's on a regular basis escrow a deed ?
Thanks,
Paul

[Roger J]

It's always a good idea to escrow the deed, if you're the T/B in a lease option, especially if it's a long term lease.  You may not be able to find the owner when you're ready to buy.

However, it doesn't protect your interest in the property at all.  The owner still is the owner until you actually exercise your option and buy it, so the owner can still get foreclosed, can still declare bankruptcy, can still give you problem after problem.

Sandwich L/Oing is a very risky business.  In my experience, their are very few professional investors who do these 'regularly.'  Most realize the risk vs. reward is too great, especially when they learn how to get the deed just as easy.

Raj