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What Nobody Told You About a Sale Leaseback

  • sale leaseback financing,
  • Financing

Unlock The Hidden Equity In Your Real Estate

 

For today’s provider organizations, real estate impacts everything. The ability to deliver quality care requires the proper spaces in which that care can be delivered. The capacity to invest in staff, infrastructure, or new business opportunities requires that cash flow isn’t monopolized by your real estate assets. Whether you own one property or hundreds across the US, our team can purchase your property outright and immediately lease it back to the business under long-term favorable terms.

 

A sale leaseback may be a financing solution for your organization. Realize the locked up capital in your real estate and use it more productively.

 

>>> IMPROVE YOUR BALANCE SHEET >>> 

By selling your real estate, your organization can reduce the liability side of the balance sheet by giving you the opportunity to pay down the mortgage or other corporate debt. Operating lease payments do not appear as a liability. 

 

>>> IMPROVE YOUR INCOME STATEMENT >>>  

By not owning real estate, your company can lessen the negative impact of depreciation and interest on its income statement. 

 

>>> TAX BENEFITS >>> 

As a lessee, you can write off your entire rent payment instead of just depreciation and the interest of debt payments. 

 

>>> RETAIN CONTOL OF PROPERTY >>> 

Typically, the lease agreement is structured so that you will retain full control of the property during the lease term and extension periods. 

 

>>> FREE UP CAPITAL >>> 

A sale leaseback lets you unlock all of the capital tied up in your real estate. If you are buying a company with real estate or if you own your real estate, unlock the capital through a sale leaseback financing program. In most common financing scenarios, a bank will only allow you to borrow 60-70 percent of the equity a property holds. Access 100% of your real estate value and redeploy the proceeds to meet your core business objectives.

 

>>> SHOULD YOU DO A SALE LEASEBACK?>>>

There is no right or wrong with a sale leaseback.  It is a financing structure that may be a great option for one an organization, but less than ideal for another.  Generally, companies that are hoping to grow and expand, who own the real estate from which they operate, will benefit from a sale-leaseback

 

Scioto delivers right-sized real estate solutions so you can focus on what matters most - delivering high-quality services to the people under your care. We leverage our expertise, our balance sheet, and our insight to help you avoid costly oversights, and make the right real estate decisions

 

Contact us today for a FREE real estate valuation!

 

 

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