NNN properties are described to be a very lucrative real estate investment today. A triple net or NNN property means that the tenant or the lessee will be responsible for all of the maintenance and repairs of the property, and payment for all taxes and insurance requirements. These types of commercial properties are the cost-effective way of availing a building especially for business purpose, as the tenant does not have to spend huge money on buying land and then constructing a building on this. He/she has to just pay the rent to the owner for using the property for business. Such types of commercial estates are ideal for hotels, retail business, travel and hospitality, IT services and other sorts of businesses.
NNN properties are highly beneficial to the owners. They do not have to manage and maintain the property. They even do not have to pay for insurance and taxes, because the tenants handle all these responsibilities. Tenant will work as the second owner of the property and will look after everything like repairing roof, removing all trash, cleaning the parking lot, repairing the parking lot, handling the maintenance of the landscaping, taking care of plumbing problems, paying for all electricity taxes, insurance etc. He/she is also supposed to pay the rent of the building to the property owner within the specified time. Thus, landlord are free from the hassles of maintaining or repairing the building.
About 1031 Exchange
This actually refers to an exchange provision allowing investors to put the extra money that they get from the sale of real estate into another equal or higher value property without the need of paying taxes on the capital gains. It means that if you have raw land, you can buy a commercial property for business purpose. A 1031 exchange is usually sought after to defer income taxes. This type of property is the stable way of generating income. Since banks are easily financing exchange properties, they have become popular real estate investment products especially in the United States and Europe.