There comes a time in every person's life when a big sum of money is much needed. Some are facing debts, some like to make investments, and some need it for their own personal pleasure. Whatever the reason is, the options to get a large amount are many, and one of them is the property sale and leaseback option.
In case you don't know how a property sale and leaseback works, here's a quick intro. When a person needs a lump sum, he or she can make a deal with another person or a company for selling a property and then leasing the same property. This is an option very popular among individuals, but even more among businessmen with enough property.
Why is it a great option? Well, the best part of it is that you get a lump sum and you still get to keep the property you're selling. With the deal, you transfer the property's owning right to another person or company, but you don't need to move.
Let's say you're an individual who owns a house and you want to need a large sum of money, but you don't like getting loans from banks for some reason. You can sell your house, get the money for it, and make a deal with the buyer for staying in the same house as a tenant. Usually, the buyer and the seller make an agreement about the guaranteed time for staying in the house as a tenant.
If you're a businessmen and you need money to make a new line for your business, you can sell a part of your property and lease it in the same time. You make the money from the sale and you get to keep the property and run it like it's still yours. For this, of course, you'll pay a monthly fee to the new owner who now needs to take care about taxes and other legal matter.
A lot of times, a property is good to be sold while the value of the property is still on the highest level. Sometimes keeping the ownership and running all the legal matter and paying taxes for the property is more expensive than selling it. This way the business provides money of that property, is not obligated to pay taxes anymore, yet the business keeps running like it used to before.
The property sale and leaseback must be done right in order to function right. The seller and the new owner must make the deal of the sell and the lease at same time. This way, the old owner is guaranteed that they still own the right to run and stay at the property that is being sold. The new owner must agree with the old owner on the fee and the time they will act as a lessee of the property. This way, the old owner continues to take care about the property just like they own it. The only difference is that all the legal matter are now a job for the new owner.