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1031 EXCHANGE
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What is a 1031 Exchange?  1031 exchanges are specifically structured transactions that join together the sale of an old property and the purchase of a new property for the purpose of deferring taxes. Exchanges are primarily used for buying and selling investment real estate, but they can also be used for personal property that is used in a business. Examples of qualifying property include bare land, rental property, commercial buildings and homes other than your primary residence
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Triple Net A triple net lease is one in which the tenant pays all of the ongoing operating expenses. The landlord receives a net rent, because the tenant pays the property taxes, utilities, insurance premiums, maintenance and repairs. Most net-leases are long term (10-25 years) with cost-of-living increases in the rent. Triple net properties are considered by many to be the most liquid and secure real estate investments available. Nearly all such properties tend to sell very quickly, especially those with solid, credit-worthy tenants. Many successful regional and national companies would rather lease the property they occupy for their trade or business, than own it. Leasing frees up corporate funds for further business expansion, rather than tying up capital in "brick and mortar." Because their company name and logo are typically on the building they are leasing, and the public perception is one of ownership, they have a vested interest in assuring the taxes are paid, the building is in good repair and the grounds and facilities are clean and maintained. Leasing the building on a triple-net lease basis gives the companies the control they desire over their physical environment without the capital commitment of ownership. Some examples of net-lease tenants are: Walgreens, Arby's, Sherwin Williams Paint, Staples, U.S. Government, Block Buster, Taco Bell, Wendy’s, Goodyear Tire, Barnes and Noble, Radio Shack, Microsoft, Circuit City, Petco, Jiffy Lube, Stop & Shop, UPS, Federal Express, Banks, Applebee’s, and Dunkin Donuts. We work with a wide variety of developers and come across Triple Net National Lease properties for 1031 Exchange.
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