Real Property: Sale-leaseback Arrangements
Pitfalls Of A Sale-Leaseback Arrangement
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- You trade the rights of an owner for those of a renter.
- If the market is weak, you might sell your home for less than you could get for it in better times. By making the sale, you to lose out on potential future gains.
- You have to find a friend or family member to make the purchase if you want to get a reasonable amount of money. It is close to impossible to find an arm's length purchaser who would pay anywhere near market value if he or she has to leaseback the home to you.
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