Real Estate Sale Lease Back: Learn About It
Investor NegativesDisadvantages of a Sale Leaseback for the Investor- Heavily improved special purpose single tenant buildings usually require significant capital expenditures to renovate for a new tenant at the end of the lease.
- If the Sale Leaseback's lease rate is above market rents, it may not be possible to replicate the economics of the original transaction should a default occur.
- A single tenant default equates to a 100% vacancy.
- There is an increased risk of foreclosure if debt financing is utilized.
- You can view a LseMod sample report or download a full report.
Other Topics About Real Estate Sale LeasebackWhat Is a Sale Leaseback? Advantages of a Sale Leaseback to the Seller / User Disadvantages of a Sale Leaseback to the Seller / User Strategic and Operating Considerations for the Seller / User Advantages of a Sale Leaseback to the Investor Disadvantages of a Sale Leaseback for the Investor Key Elements and Assumptions in Analyzing a Sale Leaseback Creating a Sale Leaseback Financial Analysis Sale Leaseback Accounting Bottom Line Caution
© 2007 James R. Duport, All rights
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