This arrangement is basically a property sale, in which the seller agrees to become a tenant in the property after the sale. The lease agreement is normally a net lease, signed prior to the sale of the property and conditioned on the sale.
For the buyers, it offers a good investment since the rental property comes complete with a paying tenant. For the seller, this arrangement frees up capital from their property and offers the tax advantages offered by leasing (which allows businesses to deduct rental payments as a business expense).
For example, Mark bought a prime industrial lot with the intention of building a new site for his company, which was currently leasing space. After a decade, Mark realized that he didn't want to spend the money to develop and build on the lot. So he enters into a sale-leaseback arrangement with a developer, who buys and develops the property. Mark sells the lot to the developer (for a nice profit) and moves as a tenant into the facility specially built by the developer. On the other hand, the developer obtains a good property investment with a long-term tenant.
For more information, please see the Sale-Leaseback article.
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The dynamics of investing can be very emotional and stressful if not properly managed. When you are aware of what is all involved you give yourself the power to avoid those situations or at least manage them effectively. That will make your investments more exciting, rewarding, and enjoyable. Those positive factors will only lead to greater success in all that achieve with investments and life.