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Why Sale/Leasebacks Could Be Your Ticket to More Commercial Real Estate Commissions
By Jim Gillespie | October 7, 2009
With so many brokers looking for new ways to find opportunities and close more transactions, sale/leasebacks may be emerging as a way for brokers to make this happen.
With state and local governments, as well as Corporate America struggling to find more cash, a sale/leaseback may be exactly what these entities are looking for in order to raise this cash for themselves. And because many of these entities are becoming even more motivated to make a deal in order to get their hands on the cash, this may be the exact ticket both you and your investors are looking for right now.
A sale/leaseback allows either the government or the company to sell their building, raise the cash that’s needed for their ongoing operations, and sign a lease to remain in the building for 5-20 years or more. And because the underlying motivation on the ownership end is to get more cash, you now have a motivated seller who must sell at today’s fair market value to an investor, in order to get this cash. And this can seem like a breath of fresh air as compared with so many other owners who have been saying things similar to, "If you can get me the price my building would have sold for at the top of the market 2-3 years ago I’m a seller, but otherwise don’t bother me with any other offers."
How motivated do you think owner/users might be to discuss a sale/leaseback with one of your investors? As an example, one of my one-on-one coaching clients under my direction sent letters out to all of the owner/users in his database, and he got 29 phone calls from owner/users wanting to discuss doing a sale/leaseback on their property! So these sale/leaseback opportunities may be emerging in your territory for you right now also, you just need to begin contacting the owner/users in your area and begin discussing this idea with them.
And even if you talk with an owner/user and they’re not ready to do a sale/leaseback right now, they may become ready within the coming months. Because if they end up needing cash even more in the months ahead, they may then recognize that the sale/leaseback is their only option to raise this cash…and you definitely want to be in front of them at that exact time they reach this decision.
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Topics: Prospecting |
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