NNN Deals are beneficial for a variety of reasons.
In addition to paying the Lease, they also pay for the taxes, insurance, and property upkeep.
When you buy residential real estate, the lender looks at you and your credit first and the property second. With commercial properties, the lender looks first at the cash flow.
In most cities in the U.S., you now can buy real estate for less than its replacement cost. Considering the current downturn in the Stock Market, many Investors recognize the stability of commercial real estate as an important consideration for a diverse portfolio.
Real estate offers tax advantages and leverage advantages that are not easy to obtain with most stock investments.
The IRS allows you to write down the value of improvements over 27.5 years for apartments and 39 years for other commercial properties. An investor also can take depreciation of a property as a tax-deductible expense to shelter other income.
Also, by using a tax-deferred exchange, investors can invest the full proceeds from the sale of one or more buildings that have appreciated in value into the purchase of one or more other buildings without paying capital gains taxes.
Submitted by: "NNN Commercial Real Estate"
NNN Florida Exclusive
