Zero-Down Master Lease-Option Playbook 2026–2027 | Cara Conde

The One Strategy That Lets Serious Investors Control Big Assets When Banks Say No

Over $1.9 trillion in commercial loans are maturing. Lenders are demanding 35–45% down and perfect credit. Most buyers are stuck.

My clients are not.

I’m Cara Conde. After building my own investment portfolio and closing hundreds of luxury residential transactions, I now help business owners and investors acquire commercial property using little or no personal capital through SVN Northern Commercial.

This is the full deep-dive on the Master Lease-Option — the single most requested strategy from my Creative Financing Playbook series (read the original overview here).

Part 1: How the Money Actually Works (Realistic 2026 Numbers)

Quick example: $10M property → $750k NOI → You pay seller $690k/yr → Pocket $60k/yr spread → Grow NOI to $1.35M → Value ~$22M → Exercise at ~$13.6M → $8M+ equity created with $0 invested.

Part 2: The 4 Flavors of Master Lease-Option (Pick the Right One)

1. Pure Cash-Flow MLO – Stable assets, harvest spread forever
2. Value-Add MLO – 60–85% occupied, force appreciation (clients’ favorite)
3. Sandwich MLO – Master-lease → sub-master-lease to an operator for a second spread
4. Hybrid MLO + Assumable Debt – Pair with an existing low-rate loan

Part 3: My Exact Must-Have Clauses

These are the non-negotiable clauses I fight for on every deal:

• Absolute Triple-Net until exercise (seller keeps roof/structure)
• Right to Assign / Sublet without landlord consent
• Capex Credit Language (the million-dollar clause):
  “All documented capital expenditures over $5,000 shall be credited dollar-for-dollar against the Option Purchase Price at closing.”
• Memorandum of Option recorded Day 1
• Non-Disturbance from underlying lender + tenant estoppels
• Personal guaranty burns off after 12–24 months
• CPI floor — never less than 2–3% annual escalator

Part 4: My 11-Point Underwriting Checklist (Fail Any One = Walk Away)

1. Year-1 positive spread ≥ $30–40k total minimum
2. Still cash-flows at -20% occupancy and -15% rents
3. Projected value at exercise ≥ strike price + 30% buffer
4. No due-on-sale clause (or land trust in place)
5. Clean preliminary title + tenant estoppels in LOI phase
6. Seller’s low basis = real motivation
7. Three logical exit buyers in Year 7–10
8. Insurance names you additional insured
9. Guaranty limited or gone after Year 1–2
10. Tenant-favorable CRE attorney review
11. Minimum 1.25× DSCR on worst-case scenario

Part 5: Real-Life Applications (100% Real Structures I’ve Used)

• Value-Add Multifamily — 80-unit complex, retiring seller. 10-year MLO, 94% NOI master rent, full capex credits. NOI grew 28% in 26 months.
• Neighborhood Retail Center — Sandwich MLO → sub-master-leased to operator → double spread, zero daily management.
• Medical Office Hybrid — MLO + assumption of 4.1% existing loan. Closed in 38 days, immediately cash-flowing six figures annually.

Part 6: Your 90-Day Zero-Down Action Plan

• Week 1–2 Study the clauses & checklist above
• Week 3–4 Identify 5–10 target properties (DM me for current off-market ideas)
• Week 5–6 Run the 11-point checklist
• Week 7–8 Submit LOI using the structure above
• Week 9–12 Close with my recommended attorney and title company

Deep Dive Podcast Episode on Master Lease-Options

17-minute episode where I break down a live deal from start to finish:

YouTube Walk-Through Video of This Playbook

Watch me walk through every section, highlight key clauses, and show real (anonymized) deal examples:

Let’s Get You Into Your First (or Next) Deal

Cara Conde
SVN Northern Commercial
Best Commercial Real Estate Agent – Indianapolis & Central Indiana
317-999-9888 | [email protected] | caraconde.com