If the 1%-2% returns that you are receiving in the current market are not satisfactory, you may want to consider a NNN Lease Investment.
An NNN leased investment is a real estate investment that includes a long term lease with an established credit tenant.The tenant is obligated to pay all of the expenses that go along with the owning property. (The NNN refers specifically to taxes, insurance and common area maintenance). THERE IS NO MANAGEMENT NEEDED.
The advantages can be substantial; a new depreciation schedule becomes a significant tax benefit not available with corporate bond holdings. Best of all, you own real estate, and not paper.
If there’s a silver lining in this cloud of confusion that has absorbed our collective attention; it’s that all of us have been forced to take a good hard look at how we invest and hold our money. Such scrutiny may reveal opportunities that were never before considered, or maybe didn’t exist in the past.
“Will the capital gains tax be raised?” Currently capital gain tax rates are at an historic low, hovering at 15% with the Feds. This may or may not change as the administration takes aim at reducing the record deficit. Still this may be a good time to sell and reposition your equity. Fortunately, the 1031 Tax Deferred Exchange Option remains a reliable and secure vehicle for building wealth. Now is a good time to evaluate the income to appreciation ratio in the property you own and determine how your property’s cash flow is actually performing for you. If you’ve owned your property for an extended period of time, you may discover that your property’s appreciation is eclipsing the cash flow. Now may be time to liquidate that asset and take advantage of the historically low prices that exist in the marketplace. Seek and ye shall find.
Annette Cooper, Top Ten Keegan & Coppin Commercial Real Estate Agents List, is based in Santa Rosa, CA specializes in 1031 Exchanges.