Raising Cash with a Real Estate Sale/Lease Back
As we all work through these difficult times it has caused many clients, customers, and other business owners to get creative on how to create cash flow. There are many business owners that are not familiar with the leased real estate investment market. You may be surprised that there is an entire global market that chooses to diversify their money by putting money into real estate that is leased. The returns on those investments are paid by the tenants/businesses that occupy them when they pay rent. If you are experiencing a tight time of cash flow, you may want to consider selling your property to a third party investor and signing a long term lease.
These are just a few benefits of doing a lease back:
1. You are able to pull all of the cash/equity out of your real estate to help support you in this difficult time.
2. You relieve yourself of the stress the comes with managing the real estate and the debt that may hurt you even further.
3. You can control the building with a lease agreement just as strongly as if you owned the property. Yes, lease agreements are binding, so even if you sell the property to another owner, your lease agreement when negotiated right gives you all the control you need. Common terms of leases could include an initial 10 year lease to maximize the sale price with an additional 3-5 year renewal terms allowing you to control your former building for the next 25 years.
If this sounds like a strategy you are interested in, consider giving me or one our experienced agents a call to discuss how we can help you.
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