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Net Leased Investments and
Tax Deferred Exchanges

 
     Did you know that many of the country's largest companies often do not own their business real estate?  Companies such as national drug store chains, national auto parts chains, national restaurant chains, gas station / convenience stores and numerous other businesses frequently long-term lease their business real estate from others.  Such leases often extend for 10-20 years or even more. The reasons businesses do this are myriad, but the most fundamental one is usually for the company to preserve its capital for funding and growing its core business - and that normally isn't real estate.

These properties occupied by national "credit tenants" make attractive investments for many reasons. 

  • CASH FLOW AND HIGHER RETURNS The most important objective of investment real estate is to create a long-term predictable return on an investment that features regular cash flow, often-favorable tax treatment, and the build up of additional equity over time.  The level of returns available are normally dictated by market conditions, the quality of the tenant (and their credit), and the specific attributes of the real estate and lease agreement.
  • ABILITY TO LEVERAGE CASH  For such properties, commercial lenders will often look to the credit and quality of the tenant occupying the property for determining the loan terms and conditions.  This frequently allows an investor to consider controlling real estate with values far in excess of what they might believe or consider to be within their financial means.  The value of the real estate may be as much as 4-5 times the amount of cash that one has available to invest. 
  • LITTLE OR NO DAY-TO-DAY MANAGEMENT Another attractive feature of Net-Leased Real Estate Investments is the lure of hands-off management.  In most cases, the owner / investor has limited or no responsibilities for maintaining the property -- everything is handled by the tenant -- taxes, insurance, maintenance, etc. 

A primary attraction is that a Net-Lease property investor can create above average, tax-sheltered income, and often has little more to do than collect a rent check, pay the mortgage if any, and turn the financial information over to his tax preparer at the end of the year.  

 The principal of the Crest Group has facilitated the purchase or sale of well over $100 Million worth of transactions for net-leased investment properties.  We also handle on a fee basis, the management of properties for clients who do not wish to deal with even the limited day-to-day responsibilities of overseeing their portfolios.  Whether you are a first-time buyer of investment real estate or seeking a property to replace one you have sold or are intending to sell,  the CREST Group should be one of your first calls. Good Net-Leased Investment Real Estate can often be purchased with as little as $100K-$300K cash down payment.  Naturally, the more cash that one has available to invest, the broader the range of opportunities that can be explored.  An investor's total borrowing power can be greatly expanded by the quality and credit of the tenant. 


TAX DEFERRED EXCHANGES   -  The 1031 (Tax Deferred) Exchange is one of the last great tax shelters and it is also often one of the least understood.  Many clients that we've met -- even some of the most successful and sophisticated business people, are unaware of their opportunity to take advantage of this great wealth compounding strategy, often believing that they cannot qualify for it.   If you're considering selling a property that you have used for either your business or investment purposes, speak to us before you list or sell that property to preserve your tax-deferring opportunity.   Measures have to be put in place early in the deal, but proper planning can save you from paying tens, if not hundreds of thousands of dollars in taxes and also offer you much greater upside in the future growth of your wealth.

THE CREST GROUP  --  THERE IS NO SUBSTITUTE FOR EXPERIENCE
 

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Contact Information


The Crest Group, Ltd.
458 Saunders Ave. # 100
Akron, OH  44319-2248
PH  (330) 644-3200

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