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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.

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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 ::
  1. What Is A Triple-Net Lease Property?
  2. What Are Some Advantages Of A Triple-Net Leased Property?
  3. What is a 1031 Tax Deferred Exchange?
  4. Types of IRC 1031 Exchanges.
  5. What is a Qualified Intermediary?
  6. Time Restrictions for completing an IRC 1031 exchange.
  7. Why is a Qualified Intermediary Necessary?

 

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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