Spectrus Real Estate - Net Lease Information

What is a NNN lease and how does it correlate to 1031 exchange properties?
A NNN (or triple net) lease is a lease in which the tenant is to pay all operating expenses of the property, and the landlord receives a net rent. For example: Big Buy Supermarkets enters into a NNN lease. They are to pay for all the taxes, utilities, insurance, repairs, janitorial services, and license fees; any debt service, major capital expenditures, and the landlord's income taxes are the responsibility of the landlord.

Most often, properties that contain NNN leases are also properties that qualify for a 1031 exchange. A 1031 exchange is rule under Internal Revenue Code (IRC) Section 1031 which provides that a real property owner can sell certain property and then reallocate the proceeds in ownership of like-kind property and defer the capital gains taxes. 1031 exchange properties with a NNN lease have proven to be very beneficial to those seeking 1031 exchange investment real estate. This is because not only do 1031 exchange properties with a NNN lease provide potential buyers with the ability to defer capital gains, but also grant them the ability to take advantage of benefits associated with a NNN lease—benefits such as paying for the major operating expenses, etc.

NNN leased 1031 exchange properties can be found through investment real estate companies such as Spectrus Real Estate. Spectrus offers 1031 exchange properties to whole buyers under their unique Net Lease PLUS™ program, which combines the benefits of a master lease with fixed monthly rental payments.

Learn more about Net lease investments at www.spectrus.com.