C — March 14 - 27, 2014 — Mid Atlantic Real Estate Journal
www.marejournal.com
§ 1031 E xchange By Alan Fruitman, 1031tax.com Everyone wants NNN Property!
N
thought the predictable cash- flow fromNNN properties was boring. However, in 2014,
properties are keywords for danger and foreclosure. Guaranteed income, a ten-
and Poors, a long-term lease, no property management, no property maintenance, and a prime location are what inves- tors now crave. These are the attributes that make NNN properties so desired and hot. NNN properties are one of the only investments that yield stable and guaranteed income with a relatively high rate of return. Multi-tenant properties have sporadic va- cancy, management hassles and continuous maintenance requirements. Dividend yield on stocks is miniscule. 10
year US Treasury bonds yield less than 3%. Bank savings accounts yield less than 0.2%. Income has become scarce; risk has not. In contrast, most NNN properties yield between 5% and 7%. Investors often purchase NNN properties for the pas- sive / retirement income. In addition to retirement income, it is very easy for a spouse, child or charity to inherit a NNN property since minimal real estate expertise is needed to own this type of invest- ment. Robust investor demand for NNN properties has created a challenging marketplace. The inventory of available prop- erties is low and properties sell fast. It is not uncommon for a quality property that is properly priced, with a long- term lease (15-25 years) from a financially strong tenant, to receive multiple offers the first day the property comes to market. Receiving and promptly re- viewing NNN properties the first day the property comes to market, or before the property officially comes to market, is one key to your purchasing success. Another key to your purchasing success is being decisive. Once you find the right NNN property, you must quickly submit a Letter of Intent (LOI) to purchase the property. If you wait, another buyer will secure the property before you do. 1031tax.com receives and reviews more than 100 NNN properties from its network of developers, owners and real estate brokers every day. 1031tax.com selects the best of the best and sends between 5 and 12 confidential NNN prop- erties to its select principal buyers every weekday. Here are a few examples of credit worthy companies (ten- ants) that 1031tax.com sends to its clients: Walgreens - $63 Billion, CVS Caremark - $86 Billion, McDonald’s – $94 Bil- lion, AutoZone – $18 Billion, Dollar General – $19 Bil- lion, JP Morgan Chase - $221 Billion, Wells Fargo - $248 Billion. Market caps have been rounded. Source: www. finance.yahoo.com on March 6, 2014. A l a n F r u i t m a n a t www.1031tax.com. n
NN leased properties are hot. 1031 exchange buyers, baby boom-
ers, retirees, doctors, law- yers, REITs and s e em- ingly every- one else who has money to invest wants to own NNN property.
NNN properties are one of the only investments that yield stable and guaranteed income with a relatively high rate of return.
Alan Fruitman
Before 2008, many inves- tors desired shopping centers with high vacancy and upside potential. These investors
“high vacancy” and “upside potential” with multi-tenant
ant with an Investment Grade Credit Rating from Standard
NNN Properties Nationwide
ALAN FRUITMAN www.1031tax.com 800-454-0015
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