Home Equity, Sale and Leaseback or Built to Suit?

If you own property, you have access to cheaper credit. Collateral lowers the lender’s risk, and that is what sets the interest rate. But “using your property” can mean three very different deals.

Home Equity: the property stays yours

You pledge your house, apartment or commercial unit as collateral (a fiduciary lien) and receive the loan. The property remains in your name and in your use.

• Who it’s for: individuals or companies that need working capital, want to swap expensive debt or finance an expansion.
• What it looks like: long terms of up to 240 months, and rates well below those of personal loans or overdrafts.
• What if the property is still financed? It can still qualify, as long as a significant share has already been paid. The analysis takes the outstanding balance into account.

Sale and Leaseback: sell, but stay inside

The company sells the property it operates from, such as a warehouse, a plant or a distribution center, and at the same time signs a long-term lease with the buyer.

• Who it’s for: manufacturers or logistics operations with capital tied up in real estate that need cash without stopping production.
• Why consider it: it usually unlocks more capital than Home Equity, because it’s a sale rather than a loan. It also doesn’t show up as debt.

Built to Suit: the property is built to order

The company contributes the land (or the demand), and an investor contributes the capital to build the property exactly as the operation needs. The company then occupies the property under a long-term lease.

• Who it’s for: larger expansion projects, such as a new warehouse, an industrial plant or a logistics center.
• Why consider it: the company grows without tying up cash in construction.

How to choose

Situation	Deal that usually fits
I need capital and want to keep the property	Home Equity
I have a warehouse in operation and need a lot of cash	Sale and Leaseback
I need a new property and don’t want to tie up cash	Built to Suit
I don’t own property, but I have a paid-off car	Vehicle-backed loan

Why take the deal to more than one institution

Every bank, fintech or fund is good at something: one on term, another on amount, another on rate. Target is accredited with 26 institutions. You put the documentation together once, the deal is presented to all of them, and you get the offers side by side. The initial analysis is free of charge.