NNN Investment Properties for Sale

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• Know your NNN investment inside out

Are you tired of getting reminders for your
property bills? Then its time to change your
investment. Paying for the maintenance of your
property can be troublesome after some point of
time. When a property ages it requires more care
and investment for its maintenance. In such a
scenario, an investor has no choice but to sell
out their old property and buy a new one.
However, doing so results in taxation on the
proceeds obtained from the sale. Whereas, on
account of exchanging properties using a 1031
Exchange investors arent liable for paying any
taxes. Yes, thats true. Moreover, you can also
get relief from property management and defer
capital gains taxes if you exchange your old
property for a NNN property using a 1031
Exchange. But before we tell you how you can
acquire a NNN property, its important that you
know what actually a NNN lease means. What does
a NNN Lease mean? A NNN lease, also known as a
triple-net lease, is an arrangement in which
tenants are required to pay the maintenance
expenses of properties instead of the property
owners. In a normal or gross lease, tenants are
only required to pay the base rent of the
property, while property owners are responsible
for paying for its maintenance. However, a NNN
lease lifts this burden from the shoulders of
property owners by asking tenants to pay the
additional property expenses.
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NNN stands for Net, Net, Net. The reason why a
NNN lease is called so is that it covers all
three nets insurance fee, property taxes, and
maintenance cost. Therefore, in a NNN lease, a
tenant is required to pay the insurance fee,
property tax, and maintenance cost of the
property along with the base rent. Whereas, in a
NN lease or double-net lease, tenants are only
required to cover any two additional expenses
insurance fee and property taxes along with
the base rent. As tenants are also required to
pay the additional property expenses, the base
rent in a NNN lease is generally less than that
in a gross lease. Its evident that NNN
investors enjoy a regular flow of income without
the burden of property management, and when
mixed with a 1031 Exchange, the benefits are
uncountable. However, there are a few things that
you must pay attention to before making a NNN
investment using a 1031 Exchange. 45 Days
Identification Period Upon successfully closing
on the sale of your relinquished property, you
must identify a potential NNN property within 45
days. This time frame of 45 days is known as the
identification period. 180 Days Deadline You
must complete your 1031 Exchange within 180 days,
which starts from the day your relinquished
property is sold. No extension will be given in
case you fail to complete your transaction within
180 days. Capitalization Rate The CAP rate or
Capitalization rate is used by investors to
determine the net operating income produced by a
property. It is calculated by taking out the
ratio between a propertys current market value
and its net operating income. For example, if
the current market value of a property is 1m and
it is generating an annual income of 200K, then
its CAP rate will be (200,000/1,000,000)
20. In simple words, the more the capitalization
rate of a property, the greater will be its net
operating income. How you can invest in a NNN
property using a 1031 Exchange? Enter into a 1031
Exchange agreement along with a Qualified
Intermediary. Close on the sale of your
relinquished property. Identify a potential NNN
investment within 45 days. Buy the same within
180 days.
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Submit form 8824 at the time of filing taxes
along with other required documents. As you can
see getting hold of a NNN property using a 1031
Exchange isnt that tough. However, its
recommended that you consult a good NNN
investment advisor before making your
investment. This is where we come to your
service. We match you with experienced NNN
investment advisors and 1031 Exchange experts.
We also stay in touch with your attorney,
accountant or closing agent for ensuring that
the transaction carries out smoothly.
How you can make most out of your NNN investment?
What really worries investors is those extra
dollars that they spend on the maintenance of
their investment properties. There is no doubt
that after some point of time every property
goes through depreciation. Many investors fail to
maintain equilibrium between the decreasing
propertys value and rising maintenance cost. As
a result, either they sell out their properties
or replace it with another one. The best way to
deal with this problem is to exchange out your
property for a NNN property using a 1031
Exchange. A NNN or triple-net lease is generally
a single-tenant arrangement that requires the
tenant to pay the additional property expenses
along with the base rent. Sometimes, a NNN
property can also be leased out to more than one
tenant. Usually, the additional property expenses
include insurance fee, property taxes, and
maintenance cost, which are together known as the
three- nets. Therefore, a lease that requires
tenants to pay all three nets is known as an
Absolute NNN lease. Similarly, a lease that
requires the tenant to pay any two nets or two
additional property expenses (which generally
includes insurance fee and property taxes)
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is known as a NN or a double-net lease. Though a
NN lease also reduces the burden of paying
additional property expenses to some extent, it
couldnt be a replacement for an Absolute NNN
lease. Why you should invest in NNN
properties? A NNN investment not only benefits
the investors by lifting the burden of paying
the maintenance cost of the property, but it also
benefits them in many other ways. Using a 1031
Exchange, an investor can exchange out their
investment property for a NNN property and defer
up to 100 capital gains taxes or they can also
exchange a NNN property for another. NNN tenants
are generally high credit rated tenants.
Therefore, a NNN investment also ensures a
regular flow of income for the long-term. Though
the base rent of properties leased under a NNN
lease is generally less than that of properties
leases under a gross lease, however, as tenants
are also required to pay the additional property
expenses, NNN investors arent likely to suffer
any kind of loss. How you can exchange out your
old property for a NNN property using a 1031
Exchange? The first step requires you to enter
into a 1031 Exchange agreement along with a
Qualified Intermediary. The second step is where
you sell your relinquished property. Upon
successfully closing on the sale of your
relinquished property, the next task is to
identify a potential NNN property within 45 days.
This deadline of 45 days is known as the
identification period. Once youve successfully
sent a written description of the identified NNN
property, youll need to acquire the same in the
next 135 days. Youll get a total of 180 days
for completing your exchange. You can find many
properties that are put under NNN lease for sale
throughout the entire USA. There are also
handsome chances that you find a
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NNN property that is already leased out to a
tenant. This is the best option as you will
start receiving income as soon as you acquire the
NNN property. One thing that you must check
before finalizing a NNN property is its
capitalization rate. The Capitalization rate or
CAP rate is determined by taking out the ratio
of the propertys current market value to the
annual income produced by it. For example, if a
propertys current market value is 500K and the
net income produced by it is 100K, then its CAP
Rate will be (100,000/500,000) 20. The
Capitalization rate is generally used by
investors to calculate the net operating income
of a property. How we can help? We provide
complete assistance for your 1031 Exchange and
connect you with the 1031 Exchange Expert. Not
only this, but we also help you with fund
transfer/documentation, etc. At last, we work
hand in hand with your attorney, accountant or
closing agent for ensuring that the transaction
runs smoothly. For consultation and assistance
regarding 1031 Exchanges, you can call 888-
993-2835 or email us at info_at_triplenetproperty.com
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