Is that "Net" or "Net-Net" (NN) or is the investment Triple Net (NNN)? The term "Net Investment" means different things to different people. Sometimes the "Net Investment" is really a "Double-Net" investment and not actually a NNN or Triple Net investment.
To determine if the real estate investment you are considering is NN or NNN, ask the listing broker if they have read the tenants lease(s). Or, better, read the lease yourself to determine what operating expense items the tenant is responsible for and those for which you, the owner, will be responsible.
If the lease is well-drawn, the paragraph pertaining to who pays what operating expeneses should be easliy understood. If it is not clear, have your attorney read the lease before you invest.
The key timelines in any Tax-deferred exchange of real estate generally are the 45-day rule in which the seller must identify (usually) three (3) possible target investment properties to acquire in exchange for the property of which the investor is disposing.
The second timeline rule is that the investor, in order to properly effect a Tax-deferred exchange under the IRS 1031 code, must close on one of the selected or "targeted" properties within six (6) months after the sale of his property. Not six months and one day, but six months period -- or the Tax-deferring option is lost.
A "Qualified Intermediary" (QA) must hold the sale proceeds of the sold property and convey them to the closing attorney of the Seller of the acquired property. Selecting a QA, broker and/or a closing attorney with Tax-deferred exchange experience and background are very important to the success of the 1031 Tax-deferred exchange transaction.
Look who's getting into Real Esatate! Deere & Co., the international tractor manufacturer, has announced they will enter into a real estate joint venture with closely held St. Lawrence Homes, Inc. of Raleigh, N.C. They will create a "John Deere Signature Community" in Durham, N.C. The $375,000 to $500,000 homes will come with a garage full of John Deere gear, including a lawn tractor with two years of free maintenance, a hand-held leaf blower, a trimmer plus garden and cleaning tools. Deere estimates the package is worth $4,000 to $5,000.
Home Buyers will also get to choose from three Deere-designed landscaping packages for the plots ranging from one-half to one acre. The plants and shrubs will come from John Deere Landscapes, a landscaping-supply wholesaler and Deere unit.
John Jenkins, Deere's president for commercial consumer equipment, stresses the venture isn't a real-estate play. "It's a way of showing the customer that John Deere can be one source in having beautiful land." ....See the "deere" run!