Model Home Sale-Leaseback Explained
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What happens when a builder wants to sell a model home but still needs to use it as a showpiece? The answer is a sale-leaseback — a smart financial arrangement that works for everyone involved. The builder sells the model home to an investor, who becomes the new legal owner. Then, the builder immediately leases the home back, signing a lease agreement that lets them continue using it as a working model home. The builder pays regular rent to the investor, who earns a steady return on the property. It is a clean, professional structure — the builder unlocks capital while keeping the model home open, and the investor gains a reliable income stream from day one.
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