Sale-Leaseback Companies Explained: How They Actually Work
2 min read · Last updated 2026-08-03 · Reviewed by Camilo Palacio, Licensed Florida Real Estate Professional (License #3280644, REALTOR®)
A sale-leaseback company buys a homeowner's house for cash, then rents it back to that homeowner as a tenant, usually with an option to buy it back later. The company holds title once the deal closes, so the seller no longer owns the home they live in. Several sale-leaseback companies have faced regulatory action over hidden fees and unclear buyback terms. Cash Flow Deals works differently: it never takes title to a seller's home at all.
| Factor | Sale-Leaseback Company | Cash Flow Deals |
|---|---|---|
| Who holds title after the deal | The sale-leaseback company, once the sale closes | No one but the buyer. Title transfers once, directly to a real homebuyer |
| Who lives in the house afterward | The original seller, now paying rent as a tenant | A new homebuyer, funded by their own FHA or conventional loan |
| How the price is set | Often tied to a future buyback price, not a simple locked number | A net price locked before repairs are scoped, paid at closing |
How a Sale-Leaseback Actually Works
A homeowner sells their house to a sale-leaseback company for cash. The company becomes the legal owner. The former owner signs a lease and stays in the home as a tenant, paying rent to the company that now owns it. Many of these deals include an option, sometimes framed as a right, to buy the house back later at a price set in the original contract. Until that buyback happens, if it happens at all, the homeowner does not own the home they live in.
Why Homeowners Consider This Option
The pitch is usually speed and staying put. A homeowner gets access to their equity in cash without listing, showing the house, or moving out. For someone who needs money now but is not ready to leave, that trade can look appealing on paper. The tradeoff is that ownership, and the equity that comes with future appreciation, moves to the company for as long as the lease runs.
The Regulatory Track Record
EasyKnock, one of the largest residential sale-leaseback companies in the country, shut down in 2024 after facing lawsuits and investigations from regulators in multiple states over its 'Sell & Stay' program, including allegations tied to unclear buyback terms and fees. Reporting on the shutdown described a company facing more than two dozen legal actions before it closed. That track record does not mean every sale-leaseback company operates the same way, but it is a real, documented pattern in the industry that any homeowner should weigh before signing.
What Makes Cash Flow Deals' Structure Different
Cash Flow Deals never takes title to a seller's home. It connects the seller with a real homebuyer, funded by that buyer's own FHA or conventional mortgage, and title transfers once, directly from seller to buyer, through a novation. The seller's net price is locked before repairs are even scoped, and Cash Flow Deals is paid as its own separate line item on the closing statement, not built into a future buyback number the seller has to hit later.
Cash Flow Deals' Process
Cash Flow Deals' process: 1. Request a net price review for the house as it sits. 2. The property is underwritten and a net price is locked before repairs are scoped. 3. The house is matched with a real buyer using their own mortgage financing. 4. Title transfers once, directly from seller to buyer, at closing. The seller is not signing a lease, is not staying on as a tenant, and does not have a future buyback number hanging over the deal.
Questions to Ask Before Signing With Any Sale-Leaseback Company
What is the exact buyback price, and does it change over time. What happens to the rent if it increases and the homeowner cannot keep up. What are the eviction terms if a payment is missed. Is there a hard deadline to exercise the buyback option, and what happens if it passes. A homeowner considering a sale-leaseback should get answers to all four in writing, and have a real estate attorney review the contract, before signing anything.
Common questions
What happens if I can't afford the rent after a sale-leaseback?
It depends entirely on the contract, but missed rent can put the homeowner at risk of eviction from a house they used to own outright. This is one of the biggest risks regulators have flagged in these deals.
Can I get my house back after a sale-leaseback?
Usually only if the buyback option in the contract is exercised on time and the homeowner can meet the price and financing terms set in that contract. If the option lapses, the house generally stays with the company.
Is a sale-leaseback the same as a reverse mortgage?
No. A reverse mortgage lets a homeowner borrow against their equity while keeping the title in their own name. A sale-leaseback transfers title to the company, and the homeowner becomes a tenant.
Why did EasyKnock, one of the biggest sale-leaseback companies, shut down?
It closed in 2024 after facing lawsuits and investigations from regulators in multiple states over its buyback and fee practices, following years of consumer complaints.
Does Cash Flow Deals do sale-leasebacks?
No. Cash Flow Deals never takes title to a seller's home. It connects the seller directly with a real homebuyer, and title transfers once, straight from seller to buyer, through a novation.