{"id":117,"date":"2021-02-23T19:03:57","date_gmt":"2021-02-23T19:03:57","guid":{"rendered":"https:\/\/expansivemindsrealestate.com\/?page_id=117"},"modified":"2022-09-07T19:56:25","modified_gmt":"2022-09-07T19:56:25","slug":"structured-ground-lease-advantages","status":"publish","type":"page","link":"https:\/\/expansivemindsrealestate.com\/?page_id=117","title":{"rendered":"STRUCTURED GROUND LEASE ADVANTAGES"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Ground leases offer superior ownership dynamics .<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>IMPROVED CASH FLOWS<\/strong><strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One big advantage to buying a leased fee property is that you can purchase your home for 10% to 16% less (on a $500,000 home you can save between $50,000 to $80,000).  At the same time, leased-land properties may offer better surroundings than apartment living for children and pets, and you can invest the money that leasing saves you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Buyers can live in a high-priced location they could not otherwise afford in addition as noted above they can invest the money they save .<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>IMPROVED DEBT SERVICE COVERAGE \/ REDUCED REFI RISK<\/strong><strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ground leases improve debt service coverage&nbsp;creating cushion to cover unforeseen interest rate or income shocks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>REDUCED EQUITY REQUIREMENTS<\/strong><strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ground leases reduce the down payment &nbsp;in buying a home &nbsp;thus allowing the homeowner to reap more of the upside.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>HIGHER RETURNS<\/strong><strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For investors Ground leases increase cash on cash returns as well as IRRs for owners &nbsp;by passing off the lowest yield portion of the capital stack.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>FINANCEABLE &#8211; AGENCY AND LENDER APPROVED LEASE FORM<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Today&#8217;s ground leases offer a lease form that is modern, comprehensive, standardized and&nbsp;capital markets compatible with&nbsp;lenders and government agencies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ground leases offer superior ownership dynamics . IMPROVED CASH FLOWS One big advantage to buying a leased fee property is that you can purchase your home for 10% to 16% [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":109,"menu_order":5,"comment_status":"closed","ping_status":"closed","template":"page-templates\/fullwidth.php","meta":{"footnotes":""},"class_list":["post-117","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/expansivemindsrealestate.com\/index.php?rest_route=\/wp\/v2\/pages\/117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/expansivemindsrealestate.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/expansivemindsrealestate.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/expansivemindsrealestate.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/expansivemindsrealestate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=117"}],"version-history":[{"count":3,"href":"https:\/\/expansivemindsrealestate.com\/index.php?rest_route=\/wp\/v2\/pages\/117\/revisions"}],"predecessor-version":[{"id":185,"href":"https:\/\/expansivemindsrealestate.com\/index.php?rest_route=\/wp\/v2\/pages\/117\/revisions\/185"}],"up":[{"embeddable":true,"href":"https:\/\/expansivemindsrealestate.com\/index.php?rest_route=\/wp\/v2\/pages\/109"}],"wp:attachment":[{"href":"https:\/\/expansivemindsrealestate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}