NNN 1031 Exchange Blog

Florida NNN Properties for 1031 Exchanges

Net Leased Properties Can Provide Reliable Income for Retirement With Little or No Management

Written By: Patrick Moorton - Mar• 18•12
Freestanding Walgreens and Freestanding CVS Are Popular With Investors

Tenants of Net Leased Properties

Net Leased Properties with National Credit Tenants can offer reliable income with the security of prime real estate as collateral. The current economic crisis has been very hard on some property owners. Increased vacancies and rent concessions sought out by tenants have lowered property values around the world. If you have been an owner of investment properties like Office Buildings, Shopping Centers or Apartment Buildings you know how intense management can be at times.

   If you have owned these properties for a long time you may want to consider selling them and replacing them with single tenant net leased properties.These types of properties are less likely to have to offer rent concessions due to their single purpose and long term lease structure. You are really buying into the long term stream of income that is guaranteed by a multi billion dollar corporation and collateralized with the land and building.

   Ideally, a self amortizing loan will pay off the property and leave the property free and clear of debt at the end of the 20 year lease period. If the tenant should leaves after the initial 20 year lease, you have a valuable asset that you can sell that is free and clear of debt. In many cases the tenant will have negotiated several options to renew the lease for 5 year periods after expiration of the initial lease term.  If they stay your return on investment increases substantially after the mortgage on the property has been paid off.

   These prime investment properties with long term leases and credit tenants are used often by investors to create income for future generations. Single tenant net leased properties with tenants like JP Morgan Chase, CVS, Walgreens, Bank of America or McDonalds are used by Individual Investors and Institutional Investors to create reliable income streams for retirement and estate planning.

Patrick Moorton is President of Income Realty Advisors Inc. Owner and operator of NNN1031Exchange.com, an online resource for investors buying and selling Single Tenant Net Leased Properties with Credit Tenants in Florida. For more information please visit http://www.NNN1031Exchange.com

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