What if you find out that there is a way through which you can get rid of this burden? Yes, there is a way and it is known as ‘NNN lease investment’. You may have heard this term if you’re a real estate investor. So, what is it? ‘NNN lease’ basically requires the tenant to pay some or entire property expenses along with the base rent. Therefore, choosing a NNN property as your 1031 Exchange replacement property will not only ensure a steady flow of income but also remove the burden of property management from your shoulders.
Following are the Reasons Why You Should Invest in 1031 Triple Net Lease Properties at Least Once:
‘NNN lease’ is a blessing for passive investors. Some investors don’t like to get exposed to the risks directly. Since the risk of paying property expenses is upon a tenant’s head, investors can enjoy 100% passive investment.
Investors can also enjoy the benefit of tax deferment on ‘NNN lease’ using a 1031 Exchange. A 1031 exchange allows investors to defer capital gains taxes upon reinvesting the proceeds, obtained from the sale of relinquished NNN property, on another NNN property. Since the proceeds obtained from the sale of the relinquished property is reinvested on another ‘like-kind’ property, the exchange qualifies for a 1031 exchange.
1031 Triple Net Lease properties makes sure that tenants don’t find the agreement biased. The base rent of properties leased under ‘NNN lease’ is comparatively lower than that of the properties leased under a gross lease. Therefore, even though tenants have to bear the burden of property maintenance, a lower rent makes it even.
Undoubtedly, every investment poses some risks to investors. However, in case of a NNN investment, threat of financial risk isn’t high, and there is no reason why shouldn’t invest in a NNN property.
For consultation and assistance regarding Triple Net Lease 1031 properties, you can call – 888-993-2835 or email us at email@example.com.