Understanding the Power of the Master Lease Strategy

Front porch of a mobile home decorated with an American flag and hanging plants, symbolizing the security and stability behind the master lease strategy in commercial real estate.

The Master Lease Strategy is one of the most effective — and underutilized — approaches in commercial real estate. Instead of asking for direct seller financing (where the answer is usually no), a master lease allows you to take control of a property now and buy it later at a fixed price.

In this lesson, Doc explains:

  • Many sellers want to retire and step away from tenants, management, and property headaches.
  • Why most sellers say “no” to direct seller financing — and how the master lease changes the conversation.
  • How to approach sellers with benefit-driven language that solves their problems.
  • How a master lease with a fixed price option can get you into deals others walk away from.
  • The master lease strategy provides steady, secured income — with no property management stress.

How It Works

  • You negotiate a master lease with a fixed option to buy.
  • The seller keeps ownership of the property and receives consistent lease payments from you.
  • You manage the property, collect the income, and verify that it supports the deal.
  • When the time is right, you exercise your purchase option with confidence.

This strategy isn’t about hype — it’s about listening to sellers’ needs and solving their problems. By giving them time freedom and stable income, you create a win-win situation.

Your LIFE SUCCESS WORK™

  • Watch the video above
  • Scroll down, click the green “Tell Me More” button → On the next page, choose the full program with bonuses or scroll to the bottom for the free version
  • Write out how you would explain the master lease strategy in 3–4 sentences
  • Identify one property where this strategy could open a door

Note on Updated Numbers (2025):
When Doc originally recorded this lesson in 2018, banks were paying less than 1% on CDs. That’s why he often suggested offering sellers 4–5.5% — four times the bank’s rate — to make the Master Lease Strategy more attractive.

Today, bank CD rates are closer to 4-5%. Even so, the strategy still works. The key is offering sellers:

  • Safety
  • Security (collateralized by the property)
  • A better than bank return
  • Freedom from property management headaches

Instead of saying “four times the bank,” position it as: “We can often give you a safe, secured return equal to or slightly better than CDs — with collateral backing and time freedom built in.”

For example, if CDs are paying 4%, offering sellers 6%–7% can make your deal attractive while still leaving plenty of room for you as the investor.

The numbers may shift with the market, but the principles remain the same.

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