Sale-Leaseback: A Great Tool for Your Business
- James West
- Apr 10
- 1 min read
Does your business own real estate that it is carrying on its balance sheet at book value? This is an un-tapped resource for cash to use for any corporate purpose, including debt consolidation, expansion, acquisitions, new equipment or new personnel.
Most business analysts agree that it does not make economic sense for a business to own the real estate that it occupies. Now you can cash in that unproductive asset at full appraised value and put that equity to a better corporate use. You retain control of the property with a long-term Lease. Better yet, you will get help from the IRS to make those Lease payments because they are fully tax-deductible.
Info needed to get started:
Basic info on property: address, property type, rentable square feet, parcel size.
Balance sheet and cash-flow statement on the tenant.
Recent or past appraisal, if available, not to be used as a valuation tool but as an introductory document to the property.
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