MHW specializes in helping businesses free up much-needed capital by accessing equity from owned real estate assets through sale-leaseback opportunities. In a sale-leaseback, an owner sells their property, and then immediately leases it back from the buyer within the same transaction. This allows the seller to access capital and still retain the use of the property. Thus the seller is able to convert the asset into funds that can support their needs without losing the ability to conduct business from the site. There are a variety of needs for an influx of capital: ability to purchase new equipment or product, growth, expansion and acquisitions, mitigating expensive debt, ownership consolidation, succession planning, etc.
MHW can assist in creating beneficial lease terms and offer professional advice. We work with investors across the country that invest in all types of property. So, why is now a good time to consider a sale-leaseback?
- Capitalization rates are low due to low interest rates which make market prices higher for Owners
- Leasing offers better tax advantages than ownership
- All terms of the lease are determined by the Seller
- There is a lot of investor money in play right now
There are many benefits when considering a sale-leaseback transaction. Some of those benefits include:
1. Immediate access to capital – This allows business owners to reinvest capital back into their business for equipment upgrades, pay off debt, expand to another location
2. Remain operating in the same location – With a lease in place, this allows the business owner to stay in the same building without the hassle of requiring to move
3. Improve the income statement – This better positions business owners to access long-term capital at a lower cost