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2.
Great Sale-Leaseback Opportunities
Abound If
you're a commercial/industrial agent who
does any leasing the chances are very
high that you've been experiencing a
market that's very different than the
one the residential agents have been
experiencing. While interest rates
constantly hover near all-time lows the
economy has been consistently lagging
for about
two years now. This has hurt the leasing
market as many companies have had little or
no interest in leasing and expanding
into larger facilities. But
at the same time these low interest
rates have fueled a strong demand for
companies to purchase properties as they
can do so while keeping their
monthly loan payments unbelievably
low--sometimes even lower than what they
would pay in rent for a similar facility. But
overall many, many companies are hurting out there. They've been trying
to get by for quite sometime now since
the economy has been slow and oftentimes
they've experienced a shortage of cash. Enter
the sale-leaseback opportunity. For
companies that own the facilities that
they do business in there may be no
better way for them to generate the cash
they need than entering into a
sale-leaseback arrangement with a
qualified investor. A sale-leaseback
arrangement, where a company sells their
facility to an investor and concurrently
signs a lease to remain in the facility
for 5-10 years or more, can be a golden
opportunity for the company, the
investor, and you as the real estate
agent. Having
recognized this opportunity for several
months now I've been instructing the
individual commercial/industrial agents
that I coach to uncover and pursue these opportunities
to the fullest extent possible in their
territories. And the results have been
flat-out incredible! One coaching client, after
sending-out just one mailing to
corporate presidents in his territory,
has received phone calls from 29 company
presidents who are interested
in pursuing sale-leaseback negotiations! Companies
right now are trying to figure-out where
they can get the cash they desperately
need. Many of them have
never even thought of the possibility of
a sale-leaseback transaction for their
facility and if they have thought about
it they have no idea how to go about
beginning the process of finding an
interested investor. Many times the idea
of putting a "For Sale" sign
on their building and publicizing the
sale-leaseback opportunity in the
marketplace frightens them as they don't
want others in the business community to
know that they are hurting for cash.
That's why a quiet, off the market deal
with one of your investors could be
exactly what they are looking for. No
signs go up on the building, no
advertising is done, no flyers are
printed, and after the transaction
closes the company remains in the facility.
To everyone not involved in the
transaction it just looks like business as
usual for the company. And to top things
off the company walks away at the closing with
hundreds of thousands to millions of
dollars in cash to utilize in whatever
manner is best for them. Some
of the most successful, most
recognizable names in Corporate America
have successfully negotiated
sale-leaseback transactions over the
years to give them the cash they wanted at the time.
I guarantee you there are quite a number of companies
in your territory who would love to
enter into this type of arrangement with
an investor right now. You just have to pickup
the phone, knock on the doors, send-out
the letters, and find these
people as soon as you possibly can.
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