Understanding the Power of the Master Lease Strategy

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.