What if you could eat your cake and have it too? Well, we’d all be a little huskier, but as the phrase suggests, the two things can’t both be true. However, if you’re struggling to make mortgage payments or are burdened by debt, a residential sale leaseback might let you live that best-of-both-worlds dream.
A residential sale-leaseback lets you stay in your home while accessing the equity you’ve invested in it through a sale. More simply, you get to eat your cake and have it too. Here, we’ll dig a little deeper into residential sale leasebacks and explain how SKYDAN’s sale leaseback program lets you stay in your home while you reach your goals.
- A residential sale-leaseback allows you to access home equity through a sale, but you don’t have to move out.
- A sale-leaseback isn’t a type of debt.
- SKYDAN’s sale-leaseback program has no income or credit score requirements
- Sale-leasebacks take much faster than traditional home sales.
What is a sale-leaseback in real estate?
A sale-leaseback is when a company sells an asset and immediately leases it from the buyer. This allows the seller to access the asset’s equity while retaining use of the asset. Sale-leasebacks are most commonly used by businesses, but they’re highly beneficial for homeowners too.
SKYDAN Equity Partners’ residential sale-leaseback program helps you use this financial strategy with your own home.
How does a sale-leaseback work?
Sale-leasebacks are surprisingly simple. But it might not be crystal clear how a sale-leaseback helps you as a homeowner because they’re usually used by big businesses. Here’s a simple example of how it works.
Say you have debt that you want to pay it off. You don’t have the money to do that right now, but you do have equity in your home. So, you sell your home and immediately start leasing it back. This gives you access to the equity in your home, allowing you to pay off your debt and stay in your home. Then, you continue leasing your home and eventually have the option to buy it back or move.
What are the benefits of residential sale-leaseback programs?
A residential sale-leaseback clearly has a lot of benefits for homeowners. You can eliminate debts, medical bills, expensive property taxes, and much more. But how a sale-leaseback program helps you matters just as much as what they do. A sale-leaseback doesn’t just help you pay off debts, medical bills, or property taxes. It allows you to do all that and:
Stay in your home
Because you immediately enter a lease agreement after selling your home, you don’t need to move. This way, you can stay in your home and neighborhood, even after selling your home.
Access cash quickly
With SKYDAN, you could have cash in hand in less than a month. That’s twice as fast as HELOCs or home equity loans. Not only are sale-leasebacks fast, but you may be able to access more than with traditional borrowing methods. This is because you’re tapping the equity in your home through a sale, not taking out a loan.
Avoid the long, costly process of selling on the open market
Selling a house takes time—about three months on average. But more importantly, it’s a costly process. Commissions for your agent and the buyer’s agent can add up to as much as 6% of your home’s value. So, if your home sells for $300,000, you could fork out over $15,000 in commissions.
Reach your goals without perfect credit
Traditional financing is hard to get and leaves homeowners with more debt. Income, credit score, and debt-to-income requirements prevent many homeowners from accessing HELOCs and home equity loans. However, sale-leaseback programs like SKYDAN’s have none of those requirements because they’re not lending money. All we require is that you have equity in your home.
Is a residential sale-leaseback right for you?
In a world where your options seem limited to expensive loans and additional debt, a residential sale-leaseback program like SKYDAN’s can seem too good to be true.