What are Zero Cash Flow Properties? One of the least understood types of real properties in the net lease market is a zero cash flow. Zero cash flow deals, also known as “Zeros,” are designed in a way that all the rent paid by the tenant goes to the lender. With all the cash flow…
What is NNN lease?
The NNN lease is a lease used by many businesses to gain the most control over a property without purchasing it. This is a long-term investment option lasting for 5 to 50 years depending on your need. In this type of commercial real estate product, tenant or lessee pays the rent plus the insurance, taxes…
1031 Exchange Properties
About 1031 Exchange Investment Properties: Since 1921 investors have been given the opportunity to defer the capital gains tax from the sale of a property by using Tax deferred 1031 exchange. Tax Deferred 1031 Exchange allows an owner of real property, the Exchanger, to defer the recognition of a capital gains tax normally recognized on…
How to Invest in Single Tenant Properties?
Triple Net Investment in single-tenant-net properties will prove a reliable form of income producing in real estate. Those who purchase NNN property often ignore the importance of location and rely heavily on the strength of Invest in Single Tenant, while the better investment includes a strong tenant in strong location. On the other hand, some…
Top Benefits of Investing in 1031 exchange
Tax liabilities on the sale of the real estate property may be upto 35%, and even more than this under certain circumstances. The payment of income tax from the sale of real estate property considerably reduces your equity and cash position, which in turn impact overall ability to build your net worth by purchasing larger…
What is sale Lease Back?
A leaseback, also known as a sale-leaseback or sale and leaseback, is a transaction wherein the owner /seller of a property sells the property to an investor (Buyer) and then leases it back from the investor. In this type of property, there are is an agreement between buyer and seller allowing seller/owner to lease back…
What is a Ground Lease?
A ground lease is a long-term lease of land ranging from 10 years to 99 years in some cases. This allows the lessee to develop a piece of land. Ground leases are often commercial real estate products allowing tenants to build a business without the expense of buying the land. They normally allow tenants to…
What is Build to Suit?
Build to suit in the real estate refers to a company that will construct a building to suit your space requirements. After construction of the structure, the owner of the property will lease the concerned building to you in lieu for the rent as agreed by you and your landlord. To put it simply, a…
What is a zero cash flow?
Also known as “Zeros”, zero cash flow deals are structured so that all the rent paid by the lessee or tenant goes to the lender. These types of properties are ideal investment option, if you are are focused on growing your portfolio but with the least risk. They allow investors to leverage investment grade credit…
What are SNDA and Estoppels Agreements?
An SNDA agreement is a contract wherein the main purpose is to clarify the relationship between the lender and tenant. As the very name indicates, it is the the subordination, non-disturbance, and adornments and is meant to address the rights between tenants and the landlords or investors. It has basically three major components, which include…