What is the primary characteristic of a sale/leaseback mortgage?

The primary characteristic of a sale/leaseback mortgage is that the owner sells a property to an investor and then leases it back from the new owner. This financial arrangement allows the original owner to free up capital that can be used for other investments or expenses, while still retaining the use of the property through a lease agreement. Essentially, it's a strategy that provides liquidity without giving up the operational control of the property.

In this scenario, the owner benefits by converting an asset (the property) into cash, while the investor gains a steady stream of income from the lease payments. This arrangement is particularly beneficial for companies that may require capital for expansion or operational needs, allowing them to manage their cash flow effectively while still occupying the property they need for business operations.