20A — March 15 - 28, 2013 — 1031 Exchange — Mid Atlantic Real Estate Journal


1031 E xchange

By Alan Fruitman, www.1031tax.com Everyone wants NNN Property!


NN leased proper- ties are hot. 1031 exchange buyers,

able cash-flow from NNN properties was boring. How- ever, in 2013, “high vacancy”

Credit Rating from Standard and Poors, a long-term lease, no property management, no

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 2%. Bank sav- ings accounts yield less than 0.2%. Income has become scarce; risk has not. In con- trast, most NNN properties yield between 5% and 7.5%. 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 investment. Robust investor demand for NNN properties has cre- ated a challenging mar- ketplace. The inventory of available properties is low and properties sell fast. It is not uncommon for a qual- ity property that is prop- erly 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 reviewing 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 suc- cess is being decisive. Once you find the right NNN prop- erty, youmust 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 properties to its select princi- pal buyers every weekday. Here are a few examples of credit worthy companies (ten- ants) that 1031tax.com sends to its clients: Walgreens - $38 Billion, CVS Caremark - $64 Billion, McDonald’s – $96 Bil- lion, AutoZone – $14 Billion, Dollar General – $16 Billion, JP Morgan Chase - $189 Billion, Wells Fargo - $188 Billion. Market caps have been rounded. Source: www. finance.yahoo.com on March 3, 2013. Contact Alan Fruitman, Jim Slinkard or Elizabeth Laesecke at www.1031tax. com. Alan, Jim and Elizabeth are available to discuss your specific property require- ments and will send a na- tionwide inventory of NNN properties to you. Alan Fruitman is presi- dent and managing bro- ker at 1031tax.com. n

baby boom- ers, doctors, l a w y e r s , REITs and s e emi ng l y e v e r y o n e else who has money to in- vest 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

and “upside potential” with multi-tenant properties are keywords for danger and foreclosure. Guaranteed income, a ten- antwithan InvestmentGrade

property maintenance, and a prime location are what investors now crave. These are the attributes that make NNN properties so desired and hot.

Before 2008, many inves- tors desired shopping cen- ters with high vacancy and upside potential. These in- vestors thought the predict-

NNN Properties Nationwide

ALAN FRUITMAN www.1031tax.com 800-454-0015

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