Triple Net Investments

Most of the information you see or hear regarding real estate is about the single-family home (SFR). But there is a lot more to the real estate market once you get beyond the SFR. Many of you are looking for your first home, many more may have purchased a second home which you hold as an investment for rental income. Some of you have acquired multi residential units such as a 4 plex or 8 plex.
These small residential investments can generate extra income over the years if the owner is able to keep them maintained and keep them occupied with responsible tenants.
However, there may come a time when the owner/investor is unwilling or unable to continue to manage these units. This may be due to a desire to travel and enjoy retirement, or to advancing years and declining health.
But, as the investor reviews the options (s)he may find that hiring a property manager is not economically feasible, and that selling the property will result in a very large tax bill for the equity gain that has accumulated over the years. For those investors who desire to keep their income property, but are no longer able to operate and maintain it on their own, there is the option of doing a tax free exchange into what is commonly referred to as a Triple Net investment property.
This is typically an improved commercial property that is on a long-term lease to a nationwide business. (Think McDonald’s, Starbucks, CVS, Chase Bank). These companies can make better use of their capital by investing it in their business than by owning real estate. So, they contract with a developer to buy the land, build the building to fit their needs, and then they sign a long-term lease on the property. The developer then sells the property, with the lease, to an investor.
These properties are referred to as Triple Net (NNN) because the lease specifies that the lessee (The Company) will pay all taxes, insurance, and maintenance on the property. This leaves the investor with no day to day responsibilities. No worry about leaking pipes, or tenant damage. The investor receives a check each month for the rent, and is free to enjoy his/her life.
If you are in a position of owning investment property that has served its purpose, and you feel you would like to be free of the responsibilities, but keep the passive income, please contact me to discuss the possibilities. Click Here