Simplify your life
The tenant takes care of everything.
Defer your gain recognition
You may be able to complete a trade with less equity than your capital gain tax would have been.
Diversify from real estate to bonds on a tax-deferred basis
Effectively replace real estate exposure with a corporate bond. Low leverage property leased to highly rated credit tenants offer the opportunity to 1031 exchange higher risk real estate into a long term bond equivalent security. This can be powerful personal financial and tax planning if used appropriately. This type of bond equivalent property also can allow for enhanced liquidity with improved access to the credit markets to raise cash levels.
Debt Component to a multi-property exchange
Replace the debt component of a multi-property 1031 exchange with 10% equity or even less and free up surplus exchange cash to acquire other unleveraged real estate with value added potential in a multi-property exchange.
Partnership planning approaches
Solve a myriad of partnership restructuring issues when partners have divergent goals and income tax planning objectives.
Permit tax deferred distributions
Add basis to your holdings with little equity.
Defer foreclosure gain recognition
The IRS considers a non-recourse foreclosure to be a sale. If your loan balance is more than your tax basis, you have capital gain and potential tax to pay out of pocket. Defer the tax by using the tax dollars to purchase net lease assets to maintain your before tax net worth.
Add basis to your partnership
Cash distributions are a return of basis, until you run out of basis. Affordably add basis to your partnership.
The tenant can pay off your debt, securely year by year.