Triple Net Investments

Written by Linda Alexander
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Tax laws are a major reason why triple net investments have become so popular in the last few years. So many of the deals are closed through 1031 exchanges. This is where investors do not have to pay taxes on the gain from selling their real estate, if they reinvest it in more property of equal or greater value.

The low interest rates on mortgages, combined with an unsteady stock market have also helped increase the popularity of triple net investments. They are relatively safe long-term investments. They offer passive income where investors do not have to become landlords, because the tenant takes care of the property.

Triple Net Leased Real Estate

Many retailers, such as large regional and national chains, lease their buildings rather than own them. They either sell the property to use the cash elsewhere, or they never buy it in the first place. Then they can use that capital toward marketing and operating costs, instead of having it tied up in the buildings.

There are many properties available on the Internet. Often, brokers are able to sell triple net buildings without the investors even visiting them in person. If you are interested in this type of investment, consult a real estate company with an inventory of commercial properties that are for sale through 1031 exchanges.

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