As the name implies, a Single Tenant NNN property is leased to one single business entity on the basis of a long term lease. On the other hand, multi-tenant properties like shopping malls or centers offer multiple spaces for different commercial purposes to different businesses. In commercial real estate, Single Tenant NNN Lease Properties are…
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Corporate NNN Lease vs. Franchisee Lease
NNN Buyers can invest in Corporate backed Triple Net NNN properties or, in Franchisee leases. National corporate retailers and restaurants, are revamping their expansion models to prevent large capital outlays by franchising more locations. Hence, a more nuanced look at the benefits of NNN leases with either corporate backing or franchisee backing, is desirable. CORPORATE OWNED…
1031 Exchange – Pitfalls
In a 1031 exchange (STARKER exchange) process allows an owner to sell one investment property and buy another similar (“like-kind”) property whilst avoiding U.S. capital gains tax. The major pitfall occurs when an exchange is audited and disallowed. The penalty standards include the income tax related to the sale of the relinquished property and the penalty and…
The 1031 Exchange – Essentials
The 1031 Starker exchange, gives the owner of the right to sell a property and buy a similar one, by deferring capital gains tax and avoiding penalty taxes, that might otherwise accrue. It is crucial to recognize that each and every minutia of due process in such exchange must be completed, otherwise significant penalties can…
NNN Lease property
The Triple Net or NNN Lease property is one of the most common kinds of commercial real estate leases. These properties seem simple to investors and hence are the top amongst a slew of widely preferred, realty, investment options. It leaves the entire burden of expense and operation on the tenant rather than the owner….
Hidden Risks of NNN Lease Investments
A Triple Net NNN Lease Investments is a commercial property lease agreement in which the tenant agrees to pay rent, common area maintenance expenses, the landlord’s real estate taxes, and the building insurance. In real life, however, NNN leases vary considerably and allocate responsibilities between landlord and tenant with considerable nuance. Because of legal nuance…