The 1031 Exchange Institute

Welcome to The 1031 Exchange Institute™. The 1031 Exchange Institute is your complete online resource for 1031 exchange, 1033 exchange, 1034 exchange, 721 exchange, 453 installment sale and 121 exclusion information.  Information will also be provided regarding Self-Directed IRAs, including Traditional IRAs, ROTH IRAs, SEP-IRAs and SIMPLE IRAs. 

The 1031 Exchange Institute is dedicated to educating and informing real estate investors and their advisors on the benefits of 1031 tax-deferred exchanges and other tax deferred and tax exlcusion strategies so they can make better informed investment decisions.

1031 Exchange Discussion Forum > How Do Triple Net Leases Compare to Single And Double Net Leases?

In terms of property expenses, rental agreements fall into two categories: gross leases and net leases. In a gross lease, the property owner pays property expenses using money received from rent payments. In a net lease, the lessee pays property expenses in addition to rent and utilities. Consequently, the owner receives rent income as a net amount after expenses are paid instead of as a gross amount before they are paid. As long as a suitable renter is chosen, a net lease is the most desirable type of rental agreement for a property owner.

Types of Agreements

The amount of rental income a net lease generates depends on the type of agreement that is signed: a single net (N) lease, a double net (NN) lease, or a triple net (NNN) lease. In a single net lease, the renter pays for property taxes. In a double net lease, the renter is responsible for covering building insurance as well as property taxes. In a triple net lease, the renter is obligated to pay for building maintenance in addition to property taxes and building insurance.

Triple net leases result in the highest property net prices. When an investor wishes to acquire income real estate for an investment portfolio, properties that are subject to an NNN agreement are some of the most desirable types of property. Likewise, when an investor wishes to sell an income property or drop and swap it in a 1031 exchange, the property tends to receive the most interest when it is under an NNN lease, and has a history of renting under the agreement.

Acquiring The Best Property

If you are searching for rental real estate that yields high property net prices, it is imperative to consult a real estate broker that specializes in the competitive NNN market. For many investors, Westwood Net Lease Advisors is that broker. Specializing in NNN properties and 1031 exchanges, Westwood Net Lease Advisors has handled over $2 billion in real estate sales. If you need to find the best deals the NNN market has to offer, let us put our experience and expertise to work for you.

To discuss your investment needs in depth, please call Jeff Gitt, Managing Broker/Co-Founder of Westwood Net Lease Advisors at 314-757-1031, jgitt@westwoodnetlease.com, or visit http://www.westwoodnetlease.com/about-us/contact/ to use our contact form.
April 30, 2013 | Unregistered CommenterChris Schellin