"A sale leaseback is a good way for real estate investors to take advantage of one aspect of the weakness in the housing market. Finding home owners who are in distress because of pending mortgage resets and buying their homes and leasing them back benefits both the investor and the home owner. The home owner gets to stay in the home, and the investor picks up a property that will surely appreciate once the glut of homes on the market diminishes.

It should not be too difficult to find distressed sellers in the Phoenix metro area. Advertising about the sale leaseback program can be done online, or by hiring someone to pass out flyers in newer subdivisions, where home owners got into their homes with subprime loans or negative amortization loans. A sales leaseback flyer should not shout out the advantages of the program, because the topic is a sensitive one to most people. Not being able to refinance or needing to sell the home because payments are too high is a highly personal topic. Well written, however, an offer of a reasonable sale leaseback program will help people out of a difficult situation, and build a strong portfolio for an investor."

SOURCE:
http://saleleaseback.ireporter.tv/2007/November/SaleLeasebackWinWinforEveryone.htm