Commercial Sale leaseback questions.

[Alex Deters]

Ok, so I know what a sale leaseback is. My question is, how does financing work? There's a property I'm looking at that is only asking for 10% down. But if they're trying to do a leaseback to raise capital, why would they only want 10% down? Do they become the bank like an owner financing deal with SFH?

[Scott E.]

Are they offering a sale leaseback, or seller financing?

I've been close to buying a few sale leaseback deals but passed due to I would be paying a premium on the price per square foot, due to the seller locking in an attractive 5 year lease (that would have been challenging to replace)

Financing on these deals was going to be similar terms to any other commercial deal. 20-30% down, 25 year term, fixed for 5 years.