What is a Sale-Leaseback?
A sale-leaseback transaction allows a commercial property owner-user to take advantage of the property value increases seen over past several years. The owner-user can unlock the equity in their owned commercial real estate assets without losing control or being forced to relocate their business for a long period of time - often as long as 5 to 25 years.
Simple Steps to a Sale-Leaseback
Step 1:
Sell property to a qualified investor while simultaneously signing a new long term lease.
Step 2:
Receive sale proceeds and no longer pays a mortgage, but rent instead as detailed on lease.
Step 3:
For further protection, contract may include a lease renewal option or repurchase option.
Benefits of a Sale-Leaseback:
Withdrawal
Withdraw 100% Equity Without Moving
Better Terms Than Conventional Bank Options
No Debt Obligation
Expansion Opportunities
Expand business operations
Make improvements to current property
Invest in higher return opportunities
Reduce Debt and Liability
Pay down debt and improve balance sheet
Reduce Income Tax liability caused by appreciation of property value
Limits risk associated with owning real estate.