CRE Investor Tip of the Week #2
Updated: Sep 1, 2019
If you own your own business or know someone who does, consider a sale leaseback for the real estate.
A business that owns their real estate can structure the ownership to where they lease the property from themselves. I assure you this is legal and there are tax benefits from doing so. Take it a step further and the business has the option to sell the real estate to a 3rd party and extract the equity out of the real estate. The business becomes a tenant who no longer has to concern itself with selling an empty older building in 5 to 10 years.