Investors with a long-term outlook, and a keen eye on stability of cash flow, can use the bond-like behavior of mostly passive, triple net lease investments to grow wealth. Truth be told, investors don’t have to be accredited to buy NNN properties! With as little as $400K – $900K in capital, they can leverage sound choices in net lease properties with the assistance of adept advisors, and begin their run toward financial independence.
In today’s low interest environment, NNN investors who wish to grow wealth can be further thrilled by the fact that the possibility of free cash flow is greatly enhanced since property returns exceed costs of capital! However, even if and when interest rates rise, NNN properties experience a compensating rise in asset prices, making the NNN sector highly resistant to market cycles.
Building wealth is a long-term endeavor, and NNN net lease investments have built-in characteristics that facilitate this. Consider this: NNN properties are commonly used by family offices because of the long terms (15-30 years), with built-in inflation hedges i.e. rent escalations, and the hands-off, lower-risk nature of investing since all expenses – maintenance, insurance and taxes – except structural issues, are the responsibility of the tenants. Often high-credit or investment grade tenants, be they grocery, dollar, fast casual restaurant, medical, or pharmacy, are sought for growing portfolios, because of reliable corporate guarantors, predictable, cash flows and thus, freedom from active property management. This passivity that occurs in the net lease investment process allows hungry, growth-minded investors to mimic family offices in their own wealth-building with focus and concentration. Investors can gain expert knowledge about net lease investing, diversify, partner, and build relationships and networks that further accelerate their efforts to grow wealth. All of this becomes possible because of their stellar choice of passive management and returns using NNN investment properties.
Many residential and multi-family investors looking for better a.k.a passive investment solutions to grow wealth turn to NNN net lease properties. Often, when looking to net lease investments, investors realize the immense benefits that NNN properties pose from a taxation perspective. However, building wealth and portfolios does not occur in an investment return only vacuum.
Tax management is huge component of growing wealth be it using accelerated depreciation and basis strategies or Starker 1031 exchanges. And when single family or actively managed multi-family properties are sold, capital gains taxes can be deferred infinitely, using 1031 or 1033 exchanges into NNN properties. This allows investors to buy larger and larger properties, meaning income AND appreciation will grow. The process allows investors to accumulate wealth without having to pay taxes every time a profit is realizable. This deferment of capital gains turbo-charges the growth of wealth like nothing else, so that combined with the buy and hold effect on NNN property values, property values multiply exponentially. Some analysts go so far as to say that the average investment returns of net lease properties that are in the 5-7% range, receive a huge tax-advantaged boost that can translate into double-digit IRRs and become the envy of many hedge funds!
So now investors know that you will need someone trustworthy and experienced on your side who can address in the complexity of building a portfolio and grow wealth using NNN properties. The best thing to do it take action, and speak with the expert agents and brokers at the Triple Net Investment Group. Call today.
