Sale Leaseback Advantages and Disdavantages

Posted by on Dec 24, 2014 in Blog - Commercial Investment Properties | 0 comments

Sale-Leaseback from a Seller and Investor Perspective

A Sale-Leaseback is where the owner occupant sells the property that he occupies today and continues to lease it back for the next  5 or 10 years providing in income stream to the investors wo purchase the property

A Sale leaseback is an interesting situation for both Investors and owners. An Investor he gets a predictable return on his investment and it’s a secure return. Typically the sale leasbacks are NNN deals where the Tenant takes care of the property maintenance so the Seller has a relatively hands-free investment to manage.

Sellers that become the Tenants have several advantages. They receive a cash payment which they can use to expand their business ro for other purposes. They stay in the same building with which they and their clients are familiar. They often receive a highe price from an investor who is buying the building with a cash flowing tenant, than they would get if they sold the building vacant or to a user (when they sell the business). A Sale lease back is a very good retirement planning strategy

If you would like to learn r more on this topic, listen to the Invest Florida show,  Hosts Steven Silverman and Eriuc Odum discuss the situation of  a Doctor who is looking towards to the end of his career and wondering what he is going to do about his real estate and his career— The solution could be a Sale Leaseback

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