Investor · Chicago, IL · Member since 2016 · 9 posts · 1 vote
Like to know where to invest in 1031 exchange ? We are almost at the retirement age and want to have steady income without having too much involvement in day to day operation. Heard lot about triple net. Any advice on that ?
1031 exchange is where you sell an asset and buy a new one within a certain amount of time. The benefit is no tax on sale. So to know where is the best to invest 1031, what current assets are you currently trying to sell and about how much are they worth?
Triple Net is when you rent out commercial property and the tenants pay (1)net real estate taxes on the leased asset, (2)net building insurance, and (3)net common area maintenance. Essentially, landlord does nothing but collects rent. It is a very nice scenario, just slightly more risks and barriers to entry for commercial real estate. Not impossible though.