Sale & Leaseback

Leaseback Transaction

As a business and property owner, you may want to consider financing your property as a way to obtain funds for future ventures. There are many ways in which a business owner can accomplish this. One of the most creative and advantageous ways to finance your asset is called a sale leaseback transaction.

What is a Sale Leaseback Transaction?

Sale leaseback transactions occur when the owner of a piece of real estate sells the property to a buyer. The buyer then leases the property back to the seller for continued use. This is a longer-term lease that can be negotiated between both parties. Typically, the seller is a business owner who is seeking additional funds but wishes to continue using the property to run their business.

Who Benefits From This Transaction?

The seller in this transaction benefits through tax breaks as well as through additional funds that can be used for future investments. The buyer benefits through the acquisition of a new property and the long-term income that comes with it.

Because both parties signed a long-term lease, the buyer immediately generates income as a landlord and the seller can find security in utilizing the space long-term.

If you are considering a sale leaseback transaction for your business, contact one of our agents today. Each of our agents are trained to advise you through this process and provide expert advice to help you make informed decisions.