Is there a tenant purchase option in my lease?

intermediary profile

February 05, 2025

by an intermediary from California State University, Northridge in Los Angeles, CA, USA

Many operating companies have no interest in being landlords / owning real estate for good reasons. You can make a higher return on your capital in day-to-day business operations as opposed to having it tied up in non-income-producing real estate (similar to owning a house, which essentially only goes up through appreciation).

If you're leasing your property, check for any tenant purchase options. It depends on several factors for it to work, but you might be able to tie up the RE by exercising the option and "flipping" via double escrow sale-leaseback. In simple terms, it's a way to make money.

It doesn't always work, but it doesn't hurt to assess. Happy to chat about this strategy with anyone interested in learning more.

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