Wednesday, October 25, 2006
Buy property from struggling companies, and then lease it back to them at a premium.
Business 2.0 Magazine --
"Jeff Hayden preys on smallish companies on the brink. Not because he's a vulture investor seeking to turn around a struggling business. He just wants its real estate. And he wants it cheap, so he can then rent it back to the company for a juicy profit.
His strategy is a new twist on what's known as a buy-to-leaseback - a deal that's long been used by big companies such as Walgreens that want to get real estate off their books and raise cash.Plenty of investors are glad to have healthy, household-name companies like Walgreens as tenants, so they purchase their properties and then lease them back.
But Hayden is striking deals with companies that big real estate investors ignore, and his approach could mark the emergence of a wide-open multibillion-dollar opportunity."
Read more at Be a landlord of last resort.
Categories: landlord, lease, premium, business, idea, buy-to-lease-back
