1031 Exchange Passive Income and NNN Investment Series by 1031 Navigator

Listener Q&A: Can you 1031 exchange a business or liquor license? What is "like kind" in a 1031 exchange?

Listener Q&A: How common are 15 year lease term NNN deals? How long are triple net leases? What tenants sign which leases?

Shout out to listeners: Melinda, Sharon, Kamal, Lucy and Ron! Thank you for your engagement in the show!

Also announcing the new short form 1031 Q&A show format!

Ask your own 1031 exchange, triple net, passive income or other commercial investment real estate question at http://1031navigator.com/ask or leave a direct voicemail at the podcast hotline at 970-300-1994

Get FREE answers to your most pressing 1031 and real estate investing questions. Leave a direct voicemail at the podcast hotline at 970-300-1994

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Thanks for listening! Your host, Thomas Morgan, CCIM

1031 Navigator helps investors nationwide find the best 1031 Exchange replacement properties in the shortest amount of time. Our focused expertise, experience and daily triple net NNN market presence enables clients to complete their 1031 Exchanges with peace of mind and certainty. NNN properties provide low risk passive income.

1031 Navigator has been involved with over a billion dollars of 1031 Exchange NNN Properties in over 35 states. 1031 Navigator is a service of Andrus & Morgan Co., a national commercial and investment real estate brokerage specializing in 1031 exchanges into passive income and triple net NNN investments.

For a free, no-obligation 1031 Exchange NNN Property Strategy session for your 1031 Exchange visit: http://www.1031navigator.com

As always, make sure to check with your legal or tax advisor before relying on this information.

This is show is for informational purposes only and is provided without warranty. Common sense is the best practice.

What is all the buzz about Opportunity Zones?

If you are a real estate investor or concerned about how much tax you pay then you have heard of Opportunity Zones.

The bipartisan Opportunity Zone Legislation was part of the 2017 Tax Cuts and Jobs Act.

Like a 1031 Exchange, the OZ legislation is meant to spur economic growth by providing capital gains tax relief. Yet, there are some key differences in each tax deferral process and investment strategy that investors should know about.

I was fortunate to be a guest this week on Jimmy Atkinson's popular Opportunity Zones Podcast. In this episode, we discuss:

- What are the similarities and differences between a 1031 exchange and an Opportunity Zones investment? - How do the investor profiles of the two programs differ?

- We also touch on triple net properties and dive a little into my back story.

I appreciate Jimmy having me on his show. Jimmy is a great guy. Make sure to check out the value he brings to the Opportunity Zone space over at OpportunityDB.

The interview is two parts.

Part One covers 1031 v. OZ and is here on our show in entirety.

Part Two covers impact investing and our separate business COMPOUND global. COMPOUND is a global impact investment fund creating triple bottomline returns from real assets. Triple bottomline refers to positive social and environmental impact returns alongside financial returns. Part Two can be found here.

OpportunityDb (The Opportunity Zones Database) provides world-class tools, education, and analysis to help individual investors, family offices, real estate developers, and industry service providers navigate the ins and outs of the Opportunity Zone program — empowering them to help create positive social impact in under-invested areas of our country.

Listener Questions - 1031 Exchanges

Today I answer the following:

1) should I do a 1031 exchange?

2) do you offer free 1031 NNN consultations?

3) do you work with brokers?

4) do you require an exclusive agreement?

5) do you require a written agreement?

6) besides NNN / triple net properties, what do you think of multi family apartments and/or mobile home park / trailer park investments?

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1031 Navigator helps investors nationwide find the best 1031 Exchange replacement properties in the shortest amount of time.

Our focused expertise, experience and daily triple net NNN market presence enables clients to complete their 1031 Exchanges with peace of mind and certainty. 1031 Navigator has been involved with over a billion dollars of 1031 Exchange NNN Properties in over 35 states.

1031 Navigator is a service of Andrus & Morgan Co., a national commercial and investment real estate brokerage specializing in passive income and triple net NNN investments.

For a free, no-obligation 1031 Exchange NNN Property Strategy session for your 1031 Exchange visit: http://www.1031navigator.com

Does the highest price win the deal?

It's not just me asking the questions. Good seller's brokers want to know who they are working with and assess the certainty of closing the deal.

Today, I discuss questions I ask new clients and share a list that a seller's broker asked when we presented an offer on a NNN Dollar General.

Here is the long list from the broker representing a large national REIT seller:

Thomas, Do you mind answering the questions below about the buyer real quick? Feel free to call me and go over verbally. Info on Buyer Where is buyer from? What’s their primary business? What other assets do they own and where? Do they own properties with the same tenant as this deal? Is the Buyer apart of a partnership? If so, how many partners are involved in the decision making process? Do you have an exclusive with this Buyer? Have you worked with the buyer before? Have they toured the property or been to the property? Are they familiar with the lease structure? All cash offer? If so, where are the funds coming from (sale of other property, investment account, etc)? Are they 1031? What is the total amount to replace and how much cash? If yes, what is their remaining time to ID? If yes, how many other properties have they identified and what are those assets? Do they have other outstanding offers? Who is their lender? What are their proposed terms/leverage? What would prevent the buyer from closing this deal?

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1031 Navigator helps investors nationwide find the best 1031 Exchange replacement properties in the shortest amount of time. Our focused expertise, experience and daily triple net NNN market presence enables clients to complete their 1031 Exchanges with peace of mind and certainty. 1031 Navigator has been involved with over half a billion dollars of 1031 Exchange NNN Properties in over 30 states. 1031 Navigator is a service of Andrus & Morgan Co., a national commercial and investment real estate brokerage specializing in passive income and triple net NNN investments. For a free, no-obligation 1031 Exchange NNN Property Strategy session for your 1031 Exchange visit: http://www.1031navigator.com

Today Thomas speaks with David Sobelman the author of two books on triple net lease investments: "The Little Book of Triple Net Lease Investing & The Little Book of Urban Net Lease Investing."

David is a true expert on triple net lease properties and NNN investments. David is the founder of Generation Income Properties a NNN REIT, Verum Properties which is the first net lease valuation tool and 3 Properties a triple net lease investment brokerage firm.

I am excited to share this helpful episode which has good insights into the biz, properties, the process and even jargon as well as some more advanced ownership examples and strategies.

The $1,500 psf example is a NNN Starbucks in Florida. The Starbucks was purchased by Generation REIT for $3,463,500 which was 14.60% below is appraised market value.

More info on David and his companies can be found at:

Books: https://amzn.to/2n0uhR2

https://www.linkedin.com/in/davidsobelman/

https://www.gipreit.com/

http://verum.properties/

https://www.3-properties.com/

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1031 Navigator helps investors nationwide find the best 1031 Exchange replacement properties in the shortest amount of time.

Our focused expertise, experience and daily triple net NNN market presence enables clients to complete their 1031 Exchanges with peace of mind and certainty. 1031 Navigator has been involved with over a billion dollars of 1031 Exchange NNN Properties in over 30 states.

1031 Navigator is a service of Andrus & Morgan Co., a national commercial and investment real estate brokerage specializing in passive income and triple net NNN investments.

For a free, no-obligation 1031 Exchange NNN Property Strategy session for your 1031 Exchange visit:

http://www.1031navigator.com

Today I answer a listener’s questions related to 1031 exchanges and triple net properties. I also give a quick update of a couple recent NNN deals I worked on including a Walgreens, CVS, Pizza Hut and Family Dollar; all of which were 1031 exchanges.

Here are the listener’s questions, we will call him “Dave” to protect his privacy:

“We are reaching out to you to hire your services to find 1-2 income producing commercial properties totalling approx $​5​MM . ​

I listened to all of your podcasts (1031 Navigator). I visited your website and wanted to ask you the same questions that you suggested on your podcast! and a few others.

1) ​How long have you been doing 1031s?

2) Are you​ CCIM and/or SIOR? ​

3) Are you a member of local or national organizations?

4) What deals are you currently working? (we're looking for apartment buildings Class C or better, NNN or absolute NNN Commercial Income Producing Properties)

5) Should I educate myself in a certain area, website, read a specific book while doing the 1031 exchange?​ Or do you or someone in your office offer explanations or education on how our potential purchase is evaluated? ​

6) ​I noticed that you asked me if I was representing my family as broker/agent. Just want to know why and if that effects our relationship / deal preference etc... ​

7) How will you be getting paid, by the listing agent or the buyer?

8) ​What is typically the 1st income producing property that your clients, who have little property management experience, exchange into and feel comfortable with?”

Thanks for listening!

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1031 Navigator helps investors nationwide find the best 1031 Exchange replacement properties in the shortest amount of time.

Our focused expertise, experience and daily triple net NNN market presence enables clients to complete their 1031 Exchanges with peace of mind and certainty.

1031 Navigator has been involved with over a billion dollars of 1031 Exchange NNN Properties in over 35 states.

1031 Navigator is a service of Andrus & Morgan Co., a national commercial and investment real estate brokerage specializing in passive income and triple net NNN investments.

For a free, no-obligation 1031 Exchange NNN Property Strategy session for your 1031 Exchange visit: http://www.1031navigator.com

I feel very fortunate to work with the clients I do.

Many thanks to everyone who has made these last several years such a success!

Two clients were kind enough to call in and share their experiences in working with me and 1031 Navigator.

Their calls and words almost brought tears to my eyes!

As I say 1) "I can toot my own horn, but my clients do it better!" and 2) "A referral is the best compliment I can receive." So, thank you to Terry and Nancy for calling in.

And thanks to all the listeners out there!

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1031 Navigator helps investors nationwide find the best 1031 Exchange replacement properties in the shortest amount of time.

Our focused expertise, experience and daily triple net NNN market presence enables clients to complete their 1031 Exchanges with peace of mind and certainty.

1031 Navigator has been involved with almost a billion dollars of 1031 Exchange NNN Properties in over 30 states.

1031 Navigator is a service of Andrus & Morgan Co., a national commercial and investment real estate brokerage specializing in passive income and triple net NNN investments.

For a free, no-obligation 1031 Exchange NNN Property Strategy session for your 1031 Exchange visit: http://www.1031navigator.com

Triple net investments are the most passive form of real estate ownership available.

That’s why we call NNN properties arm chair Investments and mail box money.

I ended up covering a lot in this episode.

Here is a quick run down:

- how to do due diligence - internet tools - do people not really go see a multi million dollar property before buying it - property inspections - do I travel? - each transaction is has a gaggle of players - big data v. Gut feel - counting cars and customers - age of NNN investors - do people really tell you “I’ll be dead when the lease expires anyway” - do people still use fax and snail mail? - and more.

And, like covered in the show, if you are in Aspen or Vail this winter and want to talk 1031 and NNN shop let me know.

As always, call or text with your questions. 970-618-4086

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1031 Navigator helps investors nationwide find the best 1031 Exchange replacement properties in the shortest amount of time.

Our focused expertise, experience and daily triple net NNN market presence enables clients to complete their 1031 Exchanges with peace of mind and certainty.

1031 Navigator has been involved with over half a billion dollars of 1031 Exchange NNN Properties in over 30 states.

1031 Navigator is a service of Andrus & Morgan Co., a national commercial and investment real estate brokerage specializing in passive income and triple net NNN investments.

For a free, no-obligation 1031 Exchange NNN Property Strategy session for your 1031 Exchange visit: http://www.1031navigator.com