#warehousebuillingsinoklahoma

[horizoncommercialrealestate]

What Do You Need to Understand About a Sale Leaseback OKC?

A sale leaseback OKC is a financing option that improves a commercial property owner's cash flow without interrupting their daily business operations. Before looking for a "sale leaseback near me," it helps to know more about this financing opportunity.

   What is a Sale Leaseback OKC?

A sale leaseback in Oklahoma is a transaction agreement between two parties regarding the use of a property, in which:

●              The initial owner of the property agrees to sell their property to a buyer or investor.

●              The initial owner then agrees to lease out the same property from the buyer or investor.

By doing this, the former property owner can stay in that property at a pre-determined rate and time (usually a minimum of seven to ten years). The lease terms and rates may be based on:

●              The seller/tenant's determination of market value.

●              The buyer/investor's financing cost.

●              The seller/tenant's credit rating.

●              The market rates of return.

Because there is already a tenant in place, the buyer/investor will have a cash flow shortly after purchasing the property. While sale leasebacks are used for many commercial property types, they are frequently used for offices, warehouses, and land.

  Most sale leasebacks follow the structure of a triple net lease (NNN lease). In a triple net lease, the seller/tenant agrees to pay any costs designated under the lease along with real estate taxes, insurance, and common area maintenance.

   Benefits of a Sale Leaseback in Oklahoma

The Seller/Tenant Can:

●              Convert equity in the commercial property into cash.

●              Establish their rental rates and various term deals.

●              Use capital previously invested in real estate for other uses.

●              Continue occupying their current property at locked-in rates.

●              Deduce rent payments as business expenses.

  The Buyer/Landlord Can:

●              Benefit from a cash-flowing asset backed by a long-term lease.

●              Deduct expenses and interest payments on their income tax return.

●              Stay protected from volatile CRE market swings.

●              Receive a higher return rate when compared to conventional arrangements.

●              Obtain a consistent return on investment with relatively low risk.

   Looking for a Sale Leaseback Near Me?

To find your next investment, visit Horizon Commercial Real Estate.