Sale And Leaseback: Is It Good?
Sometimes we need a great amount of money fast and options for getting it are limited. We found ourselves frightened and confused thinking that we have no options. Sometimes things can be really complicated, but sometimes we simply don't know the best way to getting out of the situation.
A great option when you need a large amount of money and you don't like involving banks is the sale and leaseback option. If you have a house or some other property, this can be a great choice to get a lump sum that will be enough to cover your debts or invest. If you're running a company and you need money to invest in something bigger, you can always sell some of the assets you own and at the same time lease back the same property. It's a great choice if you can't get another loan from the banks.
A regular person can also find this deal useful. If you need a large amount of money, you can sell your house and lease it back from the buyer. This is a very simple deal, but it needs to be done in perfect order if you want to make the best out of the deal.
Here's how it works. You sell your house to the buyer, but in the contract you both sign, you also both agree that the new owner will let you stay in your house and live the same way you did before. Why is this good? The most important reason, of course, is that you get a large sum of money that you can use for your purposes. In the same time, you become a tenant in your own place which means you won't need to change any of your habits or struggle with finding a new place to live. The new owner of the house is obligated to let you stay for a fixed period of time after which you can choose to buy back your place or sign a new agreement.
Another good reason why to choose the sale and leaseback deal is that when you sell your house or other property, you have no more tax and other bureaucracy obligations toward the state. This is something the new owner will have to think about. Your only responsibility is to pay the rent each month.
Some may say that this is nonsense since everyone is trying to get their hands on as much property as they can and selling it is not a smart idea. However, the sale and leaseback option is excellent for times when cash is much needed. It is not the smartest idea to sell the property if you don't need to, but it's smarter to avoid debt if you have assets that you can sell. This kind of deal keeps you away from banks and yet it provides you enough money to achieve your plans.