sale-leaseback

Definition

A transaction where the property owner sells to an investor then immediately leases it back, converting ownership to rental while extracting equity. Corporate real estate's way of having your cake, selling it, then renting it back to eat it anyway.

Example Usage

The restaurant chain used sale-leaseback transactions to raise capital while maintaining operations in their existing locations.

Origin

Corporate finance strategy popularized in the mid-20th century

Fun Fact

Major retailers like CVS and Walgreens have used sale-leasebacks to raise billions, effectively treating their real estate as a hidden piggy bank.

Source: Commercial real estate investment structure standards

Related Terms

Intermediate

buyer broker agreement

A contract binding a buyer to an agent for a specific period, ensuring the agent gets paid even if the buyer tries to ghost them after months of work. It's basically a pre-nup for the house-hunting relationship.

🏠 Real Estate

Beginner

earnest deposit

Money put down to show a seller you're serious about buying their property, essentially a financial hostage that says 'I mean business.' If you back out without a valid contingency, kiss that money goodbye.

🏠 Real Estate

Advanced

prescription

A legal doctrine where you can actually gain ownership of property by possessing it openly and continuously for a statutory period, essentially rewarding squatting with a deed. Also known as adverse possession, this concept turns 'finders keepers' into actual law, provided you're bold enough to act like you own something for long enough. It's the legal system's way of saying 'use it or lose it' to absentee property owners.

🏠 Real Estate

Beginner

amortization schedule

A detailed table showing how each mortgage payment is split between principal and interest over the loan's lifetime. It's essentially a financial crystal ball revealing that your first payments are basically just interest donations to your lender.

🏠 Real Estate

Beginner

driving for dollars

The decidedly low-tech practice of cruising neighborhoods looking for distressed, vacant, or neglected properties to target for investment opportunities. It's like Pokemon Go, but instead of catching Pikachu, you're hunting for overgrown lawns and peeling paint.

🏠 Real Estate

Beginner

exclusive listing

A contract giving one real estate agent the sole right to sell a property for a specified period, even if the owner finds a buyer independently. It's monogamy for real estate, and the agent gets paid regardless of who does the actual work.

🏠 Real Estate

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