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Welcome to NNN-1031-Properties.com
This web site is designed to provide you with
a quality selection of triple-net leased (NNN) commercial
investment properties that are ideal for 1031 "like-kind"
exchanges.
Having been involved with the site selection/acquisition,
development and disposition of over 200 single tenant properties
for nationally and regionally recognized clients such as Walgreen’s,
Bank of America, Sonic, Chick-Fil-A, Eckerd, 7-Eleven, First
Union National Bank, etc., NNN-1031-Properties.com can help
you locate and identify the best property to suit your financial
needs, as well as which property has the best underlying real
estate value.
A triple-net leased property
can be an excellent replacement property in completing a 1031
real estate exchange transaction. Many real estate
investors are disposing of their management intensive properties
such as apartment buildings, duplexes, and office buildings,
hoping to find management-free properties producing long term,
predictable income. If you are thinking of disposing of your
business or investment-held property and would like to "Pay
No Capital Gains Tax" and reinvest into a management
and headache free property, the purchase of a triple-net leased
property through a real estate exchange, is a great solution.
See our FAQ for more information on 1031
Tax Exchange Triple Net Properties.
NNN-1031- Properties.com is a marketing arm
of People’s Choice Realty Services, LLC (PCRS) located
in Tampa, Florida and maintains a database of available
triple-net lease properties located nationwide that is
available for review without the hassles of registering or
logging in 24 hours a day, 7 days a week. Should you have
an interest in a type of property or in a specific area not
listed, please contact me with your specific needs. We will
assist buyers or their brokers in identifying, negotiating,
and acquiring a suitable property within the Time Restrictions
for completing an IRC 1031 exchange, along with finding a
Qualified Intermediary to facilitate the exchange in accordance
with section 1031.
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:: Frequently
Asked Questions :: |
- What Is A Triple-Net
Lease Property?
- What Are
Some Advantages Of A Triple-Net Leased Property?
- What is a 1031 Tax
Deferred Exchange?
- Types of IRC 1031 Exchanges.
- What is a Qualified Intermediary?
- Time Restrictions for
completing an IRC 1031 exchange.
- Why is a Qualified Intermediary Necessary?
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| What Is A Triple-Net Lease
Property? |
A triple-net lease property is an investment
where one owns real estate (land and building) and leases
it to a tenant for an initial 15-25 year term with the opportunity
for rent to increase over time as a hedge against inflation.
The tenant agrees to occupy the property, operate their business
on the premises, pay, not only, rent, but all the property
operating expenses (taxes, maintenance, and insurance). This
type of real estate investment is passive, similar to owning
stock, you receive the dividends or, in this case, lease payments.
Further, these types of commercial tenants are positive business
renters and have a vested business interest in seeing that
a location is well maintained and attractive to customers.
As a result, there is an economic incentive to enhance the
owner's property over time.
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| What Are Some Advantages
Of A Triple-Net Leased Property? |
There are several advantages. First, the monthly
lease agreement provides a very predictable, long-term income
stream to the property owner. Second, since there are no property
expenses (taxes, maintenance, or insurance) to be deducted,
the income stream is not impacted by future increases in property
operating expenses. Subject to the credit worthiness of the
tenant and the terms and conditions of the lease agreement,
the investor can enjoy a high degree of security and should
expect to have additional rental increases over time as a
hedge against inflation.
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| What is a 1031 Tax Deferred
Exchange? |
Section 1031 of the Internal Revenue Code
provides that no gain or loss shall be recognized on the exchange
of property held for productive use in a trade or business,
or for investment. A tax-deferred exchange is a method by
which a property owner trades one or more relinquished properties
for one or more replacement properties of "like-kind",
while deferring the payment of federal income taxes and some
state taxes on the transaction. The like-kind exchange under
Section 1031 is tax-deferred, not tax-free. When the replacement
property is ultimately sold (not as part of another exchange),
the original deferred gain, plus any additional gain realized
since the purchase of the replacement property, is subject
to tax.
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| Types of IRC 1031 Exchanges |
Delayed Exchange: This
is the most common type of exchange. A Delayed Exchange occurs
when there is a time gap between the transfer of the Relinquished
Property and the acquisition of the Replacement Property.
A Delayed Exchange is subject to strict time restrictions,
which are set forth in the Treasury Regulations.
Reverse Exchange: A situation where the
replacement property is acquired prior to transferring the
relinquished property. The IRS has offered a safe harbor for
reverse exchanges, as outlined in Rev. Proc. 2000-37, effective
September 15, 2000.
Build-to-Suit (Improvement or Construction) Exchange: This
technique allows you to build on, or make improvements to,
the replacement property, using the exchange proceeds.
Simultaneous Exchange: The exchange of
the relinquished property for the replacement property occurs
at the same time.
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| What is a Qualified Intermediary? |
A Qualified Intermediary (QI) is an independent
party who facilitates tax-deferred exchanges pursuant to Section
1031 of the Internal Revenue Code. The QI cannot be the taxpayer
or a disqualified person. Find
a QI in your area
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| Time Restrictions for completing
an IRC 1031 exchange |
A seller has 45 days after the date that the
relinquished property is transferred to identify potential
replacement properties. The exchange must be completed by
the date that is 180 days after the transfer of the relinquished
property, or the due date of the taxpayer's federal tax return
for the year in which the relinquished property was transferred,
whichever is earlier. This type of exchange is the most common
and referred to as a Delayed Exchange.
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| Why is a Qualified Intermediary
Necessary? |
The exchange ends the moment the taxpayer
has actual or constructive receipt (i.e. direct or indirect
use or control) of the proceeds from the sale of the relinquished
property. The use of a QI is a safe harbor established by
the Treasury Regulations. If the taxpayer meets the requirements
of this safe harbor, the IRS will not consider the taxpayer
to be in receipt of the funds. The sale proceeds go directly
to the QI, who holds them until they are needed to acquire
the replacement property. The QI then delivers the funds directly
to the closing agent.
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©2005 NNN-1031-Properties.com - All rights
reserved
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