The French Leaseback
Who Are the Leaseback Buyers?
There are two major types of French Leaseback buyers: buyers buying brand new assets and buyers buying from the second-hand market. If you are trying to sell your asset, you are selling to second-hand buyers. Below is a quick outline regarding some of the basic information between the two different types of buyers:
Buyers Buying New Assets:
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Never been used and/or have had a tenant
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Sold by financial advisors with limited knowledge of the asset
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More of a financial investment rather than a real estate investment
Buyers Buying Second Hand Assets:
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Previously owned buildings or apartments under the Leaseback title
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Opportunistic Investors
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Buyers who will not use and live in the asset
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Invest in a leaseback with a track record and attractive yield
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Real Estate Users
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Buyers who will also use and live in the asset
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Willing to kick out the tenant depending on the property’s real estate value
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This is important to understand before going into the market, whether as a buyer or a seller. As a seller, this is just one of the key steps required to sell a French Leaseback.