Property Investments & 1031 Exchange
Net Leased Properties Apt Income Commercial Office Warehouse
Single Tenant Net Leased Properties
What
is a NNN Lease?
The Triple-Net Lease Definition
In a
triple-net lease, the tenant pays all the ongoing operating expenses, property
taxes, utilities, insurance premiums, maintenance and repairs. Meanwhile, the
landlord gets to collect monthly net rental income just as he or she would with
a traditional real estate investment. Such a lease usually extends over the
long term, with a financially strong corporate entity guaranteeing a lease span
of 10 to 25 years + Lease Options.
Why Triple-Net Leases?
Real
estate investors usually consider triple-net properties as a very good
investment option. That's because they are one of the most liquid and secure
real estate ventures available. Not only do they usually sell quickly, but the
tenants who opt for such properties are normally high-qualified and
creditworthy.
Most large enterprises prefer leasing property over
owning it. Why? Because by doing so, they save on real estate venture capital.
They then use that extra cash for other core business activities. To compensate
for their lack of ownership, they usually associate the leased property with
their corporate identity and image. Therefore, they prove to be great tenants
who want their building to represent their ideal image. In addition, they pay
their taxes on time, they keep the property in good shape and they maintain the
basic facilities. Moreover, they find it more viable to possess physical
control alone over their premises than to own it outright with their own
capital commitment. The commitment of both the landlord and the quality lessee
associated with these triple net properties, ensures the long-term appreciation
and security of both parties.
Triple-Net Leases as 1031 Investments
Triple-net leases are also a very good option for those individuals who
are looking for a 1031 investment. Single-tenant 1031 net leased properties are
a very practical and successful investment option. A triple-net lease via a
1031 exchange will allow the investor to realize even higher returns. How? By
deferring his or her taxes and thus increasing his or her overall internal rate
of return.
Triple-net leased properties are usually single-tenant,
retail, or industrial properties. They are long-term leases that are typically
extended to corporate tenants. A few examples of such corporate tenants are
Blockbuster, Federal Express, Home Depot, Family Dollar, Wal-Mart, AutoZone,
and Applebee's. These tenants use triple net leases for one very good reason: A
net leased property means ownership control is maintained without having to
bear the expenditure of up-front cash.
NNN
Lease- Advantages
Net. Net. Net. No landlord
responsibilities
1-1031 NNN exchange properties can relieve owners from
day-to-day management issues.
2-Steady income-stream potential paid by
a corporate tenant.
3-A long-term lease to a corporate tenant with
credit rating usually makes it easier to get a mortgage loan at favorable
rates.
4-Net Leased Properties usually are located in superior
locations.
5-NNN Lease properties may have appreciated residual values
because they are most often built for retailers who have researched the market
to find high density, middle income areas with attractive traffic patterns.
Why NNN leases should align tenants and landlord interest ?
Many
regional and national companies choose to lease their business property.
Leasing the property gives the occupying companies the ability to control their
physical environment without the financial commitment of ownership. By leasing
the property, companies free up their corporate funds for business expansion
and improvement. A NNN leases gives the companies control over the property
they occupy without the capital commitment of ownership.
Many real
estate investors own their properties as a sidelight to their full-time jobs,
and have little time to devote to their real estate investments. As
baby-boomers approach retirement, they seek to eliminate the hassle of active
property management, and take advantage of a more passive income approach.
Triple-net lease properties can provide appreciation potential as well as a
secure monthly income without the landlord responsibilities normally associated
with real estate ownership. Many "burned-out" landlords turn to net-lease real
estate as the property investment of choice.
The Triple Net properties
are normally in short supply and usually on the market a very short time
(sometimes only a few days) many investors submit a Letter of Intent as soon as
they know there is a property they would like to acquire. Upon acceptance of
their offer they will have a thirty day period to inspect and then accept or
reject the property.
Register
to obtain property offering brochures: State the property, price and
location
along with your name, phone and fax numbers. Property brochures can
be
e-mailed to you in pdf or html document. If you prefer us to fax
offering brochures, please indicate. E-mail works best because there are
usually
color photos and maps. You are welcome to e-mail or fax us your
investment criteria,
and we will automatically send you property brochures
that fit your criteria.
Contact
MeSelling
Broker:Frank Kao 949-856-9857 direct
Kingsamerica Realty & Mortgage corp
California Department
of Real Estate #01183888
15520 Rockfield Blvd.#B
Irvine, CA
92618
Office: 949-829-8828