1031 triple net lease (NNN) is a powerful commercial real estate investment strategy. It allows investors to defer capital gains taxes when selling a property by reinvesting the proceeds into a similar property under a triple net lease agreement. This approach not only facilitates tax deferral but also provides an opportunity for steady income with minimal management responsibilities.
Triple Net Lease (NNN)
When it comes to triple net lease, the tenant assumes responsibility for all property-related expenses such as real estate taxes, insurance, maintenance, and utilities, including the payment of the base rent. This arrangement relieves the property owner of many of the burdens associated with property management, making NNN properties highly desirable for investors seeking a more hands-off investment approach. Looking for 1031 triple net lease?
Who buys NNN Properties?
NNN properties attract a diverse range of investors, particularly those looking for direct ownership of commercial real estate with minimal management responsibilities. Unlike investing in mutual funds or Real Estate Investment Trusts (REITs), direct ownership offers investors greater control over their investments and the ability to defer capital gains taxes through 1031 exchanges upon selling the property.
Types of Net Leases
NNN properties can be further classified into two main categories: absolute triple net (NNN) leases and double net (NN) leases-
- · Absolute Triple Net (NNN) - The tenant is responsible for all operating expenses, including maintenance, repairs, taxes, and replacements. The property owner only pays the mortgage, making this type of lease the most common expectation for NNN property investors.
- · Bond Lease (NNN): A bond lease is a variation of the true triple net lease, where the tenant must comply with their rent and operating expense obligations, regardless of any extenuating circumstances, such as eminent domain proceedings.
- · Double Net Lease (NN) - The tenant is responsible for most operating expenses, but the owner retains some responsibilities for the structural components of the building, such as the roof and foundation.
Why Choose TM 1031 Exchange Inc.
Founded in 1999 by Tim Marshall, as a reputed 1031 triple net lease consultation service, TM 1031 Exchange Inc. connects quality investors with high-quality properties. The team comprises experts in investment real estate, risk mitigation, portfolio strategy, and wealth management. Whether you are exploring NNN properties or seeking to leverage a 1031 exchange, TM 1031 Exchange Inc. will guide you.
TM 1031 Partner Program
Through this Partner Program, investors gain access to top-notch real estate attorneys, Certified Public Accountants, Qualified Intermediaries, and brokers.
Investor-centric approach
TM 1031 Exchange Inc. prioritizes an investor-centric approach. They take the time to understand each investor’s unique needs before presenting tailored property options from their extensive national inventory.
Performance-based Model
Their performance-based compensation model ensures that they are dedicated to matching quality investors with suitable properties. The objective is to provide clear, straightforward information and access to attractive investment opportunities, with a focus on non-management properties, 1031 exchanges, and wealth creation. By offering a comprehensive and consultative service, they empower investors to make informed decisions and achieve their financial goals.