Who is buying the model home leasebacks?
My company will sell well over 100 properties to Investors this year. A large portion of them are sold to out-of state buyers. Most of the investors I sold single family rental properties in years past are converting to model home leasebacks almost exclusively. They tell me that they know they are paying more for the models than they were with empty rental homes but will have more secure cash flow and a higher total return over the long haul. No expenses related to the stopped up plumbing, leasing fees, re-key fees, repainting, or not to mention worries about the tenant paying or vacancy! They love the fact that the builder maintains the complete home, in some cases even for acts of vandalism that may occur. It’s really more like a triple net commercial lease more than a residential lease. In fact, this is really more of a hybrid type of real estate purchase, a cross between a residential investment property and a commercial building. Every Investor looking for a secure, stable entry i
