Master Lease with Option
In these uncertain and difficult economic times, loans on multi-family properties that are highly leveraged are coming due and many of these properties are unable to be refinanced. Without available financing, owners are being forced to sell. Refinancing is difficult partly because a property may be under-performing and the attainable loan to value (LTV) in today's market may not be enough to pay off the existing mortgage.
We offer a Master Lease with Option often referred to a 'delayed closing' by providing a resolution to a current problem by providing a faster close than a traditional sale. This enables property owners to transition from the day to day operations to a passive, hands free interest while continuing to collect one payment every month from one single tenant, 'The Master Tenant'.
This program enables us to assist and address owners who are looking to transition from active management to a true sense of passive ownership without any management responsibilities or overseeing an existing management group if on exists.
Through a delayed purchase, the Master Lease Option (MLO), we create a Triple Net (NNN) lease on an entire building for it's current Net Operating Income (NOI). A Property Owner will continue to receive the same NOI they are currently receiving but without any of the current marketing, management expenses or property responsibility. The Property Owner will only have to deal with one single tenant, the 'Master Tenant'.
Because the Property Owner continues to be on title, the Owner will continue to claim property depreciation and all the tax benefits...while dealing with only one tenant without any property responsibilities.
Our program is well suited for properties that may be experiencing increasing or current high vacancies, declining rental rates, problematic tenants, and rising operating expenses. Today, banks are more leery than in years past to fund distressed properties. Cornerstone can help.
WE OFFER A WIN-WIN SOLUTION
To see how we may be able to assist you, take a moment to click on and fill out the Property Submission Form. You will be contacted within 48 hours.
ALL THIS CAN BE ACCOMPLISHED IN AS LITTLE AS 30 days.
Benefits for the Seller