Financial Resource

Are you interested in purchasing a net leased property but not sure this is the right time? The current economy has many people questioning once sound business decisions when it comes to investing in real estate. Real estate is one of those investments that is rarely bad to go into in general. Timing though is everything and now, if you buy wisely, is an excellent time to invest in commercial properties of all kinds. NNN lease properties are no exceptions.

Here are a few times when it can especially advantageous to take the plunge and dive into a net lease property investment.

Retirees Love NNN Lease Properties

Why, you ask? Because net leased commercial properties represent the ultimate freedom in ownership. You can travel the country to play 18 holes at every golf course visited by the PGA tour, spend your summers with the grandkids and winters at the beach. You can sit at home testing out the warranty on your favorite recliner with no worries over your investment properties falling down around your ears, paying insurance bills every month, or even making the property tax payments when they come due. Those worries are left to someone else while you’re free to cash the checks that roll in every month.

Consider Net Leases for Consistent Monthly Income

If you’re trying to establish a specific standard of living or a minimum monthly income for your retirement years, so you can go back to school, or just so you can attempt a new business venture without worrying about providing for the family, a net lease investment might be ideal for you. These leases are generally much longer term leases than the average tenant is willing to give. On the downside the income is a little less than traditional leases but you can depend on this income for a longer period of time and you’re eliminating many of the other expenses that property owners face as part of the terms of the lease.

Need an Excellent 1031 Property?

When the time comes to “exchange up” into the next level of a 1031 investment situation, it’s a good time to sit back and evaluate the potential value of going with a net leased property for this particular investment. You can get a much larger property than you might be able to afford in ordinary circumstances by applying all the proceeds and equity from the “sale” of your existing investment property to the purchase or “exchange” to the new property. You can’t deny the appeal of tax deferrals. Building a solid monthly income during the meantime is nothing to turn your nose up about either.

The only question that remains is this: is now the right time for you to purchase a net leased property?

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