Client willing to give up $400K in Equity for a 10 Lease to Servi

2 Replies

I have a client who wants to pay off some loans and leaseback his home for 10 years with an option for additional years.  There is a possibility an investor can purchase this home with a note and no cash out of pocket.  The existing home owner will service the note.  The list price on this home would be $1,925,000.  If an investor put a $1,500,000 note on the home with no money out of pocket, there would be approximately $400,000 instant equity and the note would be serviced by the leaseback.

Any other creative financing ideas?

About the home:  Located on the Central California Coast 35 miles to San Jose International Airport & Silicon Valley – 3 Blocks to the Beach

This lovely home was purchased by the owners as a new build in 1991 and is located on a beautiful and quiet cul-de-sac within walking distance of Capitola Beach and the Pacific Ocean.

The owners love the property and raised a family in the home and desire to stay in the home, but have use of their capital. They would like to lease the home back for 10 years with 2+ year renewable options. They are willing to offer a significant discount off the current market value of the home and are willing to provide significant and immediate equity in return for a long term lease. They are flexible and willing to negotiate the discount and lease terms.

This is a large beautiful 3 bedrooms, 2.5 bath well-maintained home built in 1990. The kitchen has been upgraded to include a Sub-Zero refrigerator and a Viking cooktop. The master suite includes a marble tiled bathroom and shower. The property has an installed security system, an automatic sprinkler system, paved patios, and a new hot water tank and software water system. There are (3) working fireplaces in the home.

Great location, stroll to the beach & Capitola Village shops and restaurants. Sought after location in Upper Village behind Gayle’s bakery. Quiet neighborhood cul-de-sac not impacted by tourists and special events of the lower village.

Hello Paul,

Did your home owners find an investor?

I’m wondering what they propose for a leaseback? I would be interested in a NNN longterm lease if it covers the interest on the note, and the seller agrees to pay for inspections and closing costs.

Let’s talk about it.

David

Do they need access to funding like a bridge financing?

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.