Can a Triple Net property be used to complete a Real Estate Exchange?
Yes. A Triple Net Leased property can be an excellent replacement property in completing an Exchange transaction. Many real estate investors dispose of their management-intensive properties such as rental houses, apartment buildings, duplexes, and office buildings, hoping to find management-free properties producing long-term, predictable income. If you are thinking of disposing of your business or investment-held property, would like to pay no capital gains tax and reinvest into a management and headache-free property, the purchase of a Triple Net Leased property through a Real Estate Exchange can be just right for your investment portfolio. What about financing? Most investors will purchase a Net Leased property by leveraging their cash outlay — putting twenty to fifty percent down and obtaining a long-term bank loan (15 to 20 years) for the balance. Because of the financial standing of the credit tenant, these loans are usually obtained at a more favorable interest rate and a lowe
