Commercial Sale leaseback questions.
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?
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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.