Why would someone consider a sale leaseback?
A Sale Leaseback is a strategy to structure your own lease and sell your real estate to a 3rd party. You enter into a long-term lease in exchange for the sale of your real estate.
- Free up capital to expand or grow your practice - Most banks do not consider leasing part of the debt-to-income ratio and allow more financing capital if you lease vs. own real estate.
- Sell to a 3rd party when a buyer of your practice is either not able or not willing to purchase your real estate.
- Fund retirement accounts prior to selling your practice.
- Transfer proceeds into other investment vehicles that have higher rate of return
- Transfer your equity from managed into a non-managed assets like an UPREIT, fund, Index Universal Life, or other preferred return investment.
- Strategically make more on your real estate than you would if you sold the real estate to a buyer of your practice.
- Take advantage of the timing in a market for above typical market values.
Freeing up equity can be used to finance new locations, over fund retirement packages, or be structured to defer taxes by selling to a REIT that has an UPREIT option, etc.
Unparalleled Specialization in representing Owners in the sale of their healthcare facilities and originating capital for new development and or expansion
How can we make this claim? Because we take the extra step in educating Sellers on the cash flow Return threshold of various investors. This gets to the bottom line of value, in addition to estimating value from Cap rates and Comps. When the interest rate environment changes, we are in sync with well-informed and accurate valuations.