Do you want to acquire real property? Contact us.
Does your company have real estate on its balance sheet? Then we would like to ask you to consider a sale/leaseback transaction.
Companies looking to finance growth, make an acquisition, pay down debt or reallocate capital into more productive uses should consider sale-leaseback financing as a key capital-raising alternative. The sale/leaseback is a financing technique that has been used in the United States since the 1940's.
The transaction, in its most basic form, involves the sale of a property to an investor who holds title and leases the property back to the former owner. The lease is typically a long-term "net" lease, with the seller/tenant having the option of repurchasing at a later time. The seller/tenant reaps the benefit of favorable 100% "financing" and still retains the use of the property. The buyer/landlord receives the tax benefit of depreciation and a guaranteed long-term rental.
Some of the resulting benefits:
- Frees-up capital to be invested
into the growth of your company;
- Improves the balance sheet;
- You retain control of the property;
- Able to defer a considerable
portion of the tax liability;
- Receive 100% of fair market value;