Monday, March 21, 2005

The Net Leased Investment

Net Leased properties are considered by many to be the most liquid and secure real estate investments available. Now with the ability to "exchange" properties and deferring capital gains many investors view these as a "must".

Credit-grade tenants are assigned a rating based upon the S&P credit scoring system. The net leased S&P "Credit" is inversely related to the net leased Capitalization Rate (CAP). Thus, the higher the net leased credit, the lower the net leased CAP and the lower the credit, the higher the net leased CAP.

Here are a few important points:
  • Net Leased investments can offer a relatively hands-free method of investing in real estate.
  • Nearly all net leased properties tend to sell very quickly, especially the high net leased credit grade.
  • Nearly all net leased properties sell at or VERY NEAR their offering prices.
  • Net Leased properties close fast with a short due diligence since most of the tenant's research has already been verified for creditworthiness.

Let us know if you need help performing a 1031 exchange or if you are looking for a net-leased investment property? Send us an email with your requirements.

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