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It can be quite Hard to Rent out a Sale and Leaseback Property Upon Expiry
By Investment Moats  •  March 27, 2019

When a long term tenant of your property decides to leave, this might create a problem for the landlord. 

In some cases, your tenants go bankrupt halfway through the lease and could not pay the rent, despite that there is a contractual obligations to do that. 

You would have the headache of trying to find new tenants for the property. 

And if you cannot find one, you do not get any rent for the vacant period.

These are some of the trials and tribulations if the company you are invested in, decides to acquire a property in a sale and leaseback arrangement. 

In such an arrangement, the seller decides to sell to a buyer their property they owned. The seller then decides to lease back the premises from the buyer for a duration of time. 

The seller is able to make a profit on the property, or more importantly, get immediate cash

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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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