For owner-operators who own their building, a sale-leaseback can free up significant capital while you keep running the school. Here's how it works.
The basic structure
In a sale-leaseback, you sell the real estate to an investor and simultaneously sign a long-term lease to keep operating in the same building. You convert the equity in your property into cash while maintaining continuity of operations.
The investor gets a stabilized, occupied asset with a known operator; you get liquidity without disrupting the business.
When it makes sense
Sale-leasebacks suit owners who want to redeploy capital — into expansion, debt reduction, or diversification — but aren't ready to exit the business. The lease terms you negotiate (rent, term, escalations) directly shape both your future cost and the price the asset commands.
Structured well, it can be more tax- and cash-efficient than a conventional refinance.
Getting the terms right
The art is in balancing sale price against lease terms: a higher rent can lift the price but raises your ongoing cost, and vice versa. Aligning those with your plans is critical.
Having structured these deals, we help owners optimize both sides of the transaction.
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