About 1031 Exchanges
A 1031 exchange allows property owners to avoid paying capital gains taxes when selling investment property. The proceeds from the sale must be reinvested within certain time limits in a property, or properties, of like kind and equal or greater value.
The 1031 exchange process differs significantly from a typical purchase. In addition to the typical escrow process, it requires the seller to identify a replacement property (called the “upleg”) within a 45-day period from closing the original investment (called the “downleg”) and engage an exchange accommodator to work with escrow during the downleg’s closing process. The exchange purchase must be completed within 180 days. Given the time constraints, it is crucial to control the process effectively, and the Century Partners team is highly adept and experienced with executing the transaction smoothly and professionally.
About Triple Net Leases
Net leases are highly sought after by 1031 exchange investors. An absolute triple net lease is a lease agreement in place between Landlord and Tenant where tenant pays Landlord a fixed amount of money, usually monthly, and the tenant is responsible for paying all expenses associated with the property. The landlord benefits from a predictable income stream with minimal, if any, asset management required on their part. During the closing process, Century Partners Asset Management can advise the new owner on the management of the property and/or take over management needs.
Benefits of net lease assets:
Defined lease terms
Simple, hands-off management structure
Credit tenants
Tax deferment