how to earn money with real estate options_17

_{In a LASH transaction, there are three parties:}

_{1. The property owner, who is the landlord or lessor.}

_{2. The tenant, who is the lessee and the sublessor.}

_{3. The sublease tenant, who is the sublessee.}

_{There is really nothing very complicated about how the LASH strategy}

_{works. It is nothing more than the old BLASH—buy low and sell higher—strategy}

_{applied to leasing. For example, when using the LASH strategy, a tenant or lessee}

_{signs a long-term (three- to five-year) f lat-rate master lease with a landlord or lessor.}

_{The master lease agreement creates a leasehold estate, giving the tenant the}

_{right to possess, use, and sublease the property. Once the tenant subleases the}

_{property to a sublease tenant or sublessee, the tenant becomes a sublessor. In a}

_{LASH transaction, the tenant acts as a middleman, leasing the property directly}

_{from the owner and then subleasing it to a sublease tenant. To illustrate, let us}

_{suppose that a tenant has a $2,500 a month master lease on a small commercial}

_{property, which is subleased for $3,300 a month. The difference between what the}

_{tenant pays the landlord in rent and what is collected in sublease rent is the tenant's}

_{profit. In this case, the tenant's monthly LASH profit would be $800.}

_{by the real estate attorneys working for a professional association—for use in}

_{your state. You want to always use a valid lease agreement, approved for use by a}

_{professional trade association, because it will pass legal scrutiny in court. I recommend}

_{that you buy a copy of a valid lease agreement from one of the various}

_{professional associations, which represent the owners of residential, commercial,}

_{industrial, and office properties in your state, and then modif y the agreement to}

_{fit your needs. For example, when you need a valid residential lease, buy a copy}

_{from your local apartment owners' association. As far as I am concerned, the}

_{generic lease agreements, which you can buy from office supply stores or download}

_{for free from web sites on the Internet, are good for only two things: lining}

_{birdcages and wrapping garbage.}