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Why Buy Net Leased Property?
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- Guaranteed income by a well known corporation.
- Sometimes financing is in place on net leased properties which can be assumed to meet the debt/equity requirements of Section 1031.
- New financing is usually available from a variety of commercial lenders on a variety of terms and conditions. Amortization schedules can run from 20 to 30 years with a call on the loan at 10, 15, or 20 years.
- Equity can be refinanced tax free after a 1031 exchange is complete.
- Net Leased Properties usually are located in superior locations, therefore the residual value of the real estate is usually quite good.
- Estate taxes can be favorably affected. Ask your attorney for his advice.
- Net Leased Properties can relieve you from management headaches associated with other types of income real estate.
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