Fractional 1031 Investment Benefits
Real estate investors contemplating a 1031 exchange must make many decisions regarding their choice of replacement property. Investors must determine the type of property, location of the asset, and whether or not to reinvest into multiple assets. Investors then have to thoroughly evaluate their options and select just a few potential choices -- all within 45 days from selling their investment property!
Six Benefits Of Single-Tenant Net-Leased (STNL) Properties Investments
A single-tenant net lease property is one which, as the name implies, is fully leased to one tenant on a net lease basis. The lease is often a triple net lease , meaning the tenant is fully responsible for all property operating expenses. A single-tenant net lease (STNL) offers investors the opportunity to own a (typically) freestanding property occupied by a single tenant. New leases for these properties are often longer-term (10 to 25 years) and tenants frequently include household-name businesses such as Walgreens, McDonald’s or Starbucks. In addition, net lease properties may provide the following investment benefits:
Real Estate Risk Profiles
The relationship of risk and return is a core concept to any investment decision. Nearly every investment (apart from keeping money under your mattress) is designed to produce an expected return - typically through income, capital appreciation , or some combination.
Four Ways Real Estate May Build Wealth
You’ve probably seen the late-night infomercials, reality TV shows and get-rich-quick books on real estate investing. Most focus on buying properties for peanuts, making a few minor cosmetic upgrades and flipping the property for big bucks. Unfortunately, for the average investor, it seldom works this way.
What Is A Net Lease?
If you’ve ever considered investing in commercial real estate, you’ve likely heard the term “net lease” or “triple-net” mentioned. Unfortunately, these terms can have different interpretations depending on the context and market. They are also amongst the most commonly misused terms in real estate, which can be quite confusing for potential investors.
Pros And Cons Of Various Property Types
Although most commercial real estate properties have the ability to produce income, the strengths and risks in their potential cash flows differ by type of property. Traditional commercial property types are generally considered to consist of multifamily, retail, office and industrial, however, several other property types are becoming more accepted by investors. Let’s take a quick look at different investment property types along with their relative pros and cons. It should be noted that this post is a generalization and that all properties are subject to asset-specific traits.
Pros and Cons of a 1031 Exchange
A 1031 exchange is a tax-deferred exchange of one investment property for another. The IRS permits investors to sell an investment property and defer capital gains, provided they reinvest the proceeds into a replacement property. If you are currently investing in real estate, this probably seems intriguing. In determining if a 1031 exchange is right for you, consider the following pros and cons:
Is Your 1031 Money Safe? Know Your Qualified Intermediary Risks.
The name “qualified intermediary” (QI) — or 1031 exchange accommodator — is somewhat of a misnomer. When I hear something is “qualified,” I tend to think that it has been limited, or is less-than-positive . But when it comes to a QI, most of the time this is not the case..
Tax Benefit Of Real Estate Investing - Examples
When properly structured, real estate can be an extremely tax efficient investment. Benefits are produced by the following three components: Depreciation Interest Deduction 1031 Exchange
Is a Reverse 1031 Exchange Right For You?
You find a property that you really want to purchase, but you know you have to move quickly to take advantage of the investment opportunity. The problem is you haven’t sold your existing property yet. A Reverse 1031 Exchange might be the answer and could save you thousands of dollars in capital gains taxes.
