Care Facility Lease To Purchase
How Does a Lease Purchase Benefit You - the Seller?
Sell the business first: If you already failed or are not willing to sell your facility in this distressed housing market, you can choose to sell you business first and arrange a Lease Purchase deal on your real property. This will release you from the tedious daily operation of the business and the potential business liability.
Higher sales price: More buyers are willing to pay a premium because of the initial low investment, term lease contract and flexibility you're offering.
Higher than usual rent: Since you are offering a tremendous value to allow the tenant/buyer to start the business at a lower cost, you can demand a higher than usual rent.
Positive cash flow: A higher than usual rent can bring you positive cash flow.
Non-refundable option money: When a tenant/buyer executes (signs) a Lease to Purchase contract, you receive a non-refundable option deposit that is yours to keep should they default or decide not to buy.
Higher quality tenants: Because the tenant/buyer has a vested interest in your property and has purchased your business that is located at the property, they tend to perform routine maintenance and make improvements to your home.
Protection against late payments : Our lease to purchase contract requires the tenant/buyer to pay rent on time; otherwise, they are taking the risk of losing the option right to purchase the property.
Tax shelter held intact: Because you remain on the deed until the option is exercised, you maintain all of the tax benefits of ownership.
A bigger pool of qualified buyers: The lower initial investment cost will bring the seller more qualified buyers to choose from. Eventually, the transaction could secure a higher success ratio and a more reliable buyer/seller or tenant/landlord relationship.