Why might a homeowner consider a sale-leaseback arrangement?

A homeowner might consider a sale-leaseback arrangement primarily to free up capital while retaining use of the property. In this arrangement, the homeowner sells their property to an investor and simultaneously leases it back, which allows them to continue occupying the space as a tenant. This can be beneficial for a homeowner who needs to liquidate assets for cash but does not want to move or lose access to the property.

By entering a sale-leaseback, the homeowner can use the proceeds from the sale for various purposes, such as paying debts, investing in other ventures, or improving their financial situation, all while maintaining the same living or working space. The leaseback agreement typically involves a long-term lease, which provides the homeowner stability and a sense of continuity despite the change in ownership.

This arrangement is particularly appealing in situations where the homeowner may require liquidity to fund other investments or business opportunities, making it a strategic financial decision rather than a mere necessity.