Triple Net Lease Guide: What DST Investors Need to Know
A Guide to Understanding NNN Lease Structures, Tenant Credit, and Cap Rates for DST Investors
Investors moving toward passive real estate will inevitably encounter triple net leases, either directly or through Delaware Statutory Trust (DST) offerings. It is important to understand how NNNs function and how NNN leases vary in meaningful ways. The mechanics of a specific NNN lease directly affects the stability of your cash flow and the risks you assume as an investor.
This guide explains what triple net leases are, why they are so common within the DST world, and how to evaluate NNN properties when reviewing your options for a 1031 exchange (both inside a DST or direct ownership). We focus on the practical implications for investors who want to understand the structure rather than simply accept sponsor or broker projections at face value.
What Is a Triple Net Lease?
A triple net lease is a commercial real estate lease where the tenant pays base rent plus three categories of operating expenses: property taxes, building insurance, and common area maintenance. The term "triple net" refers to these three expenses that are covered by the tenant, thus making the rent "net of" these costs for the landlord.
This expense structure differs fundamentally from gross lease properties, where the landlord receives a single rent payment and covers all operating expenses from that income. In a NNN lease, the tenant pays these expenses directly or reimburses the landlord, creating a clearer separation between rental income and operating costs.
Base rent in NNN leases typically runs lower than comparable gross lease properties because the rent figure does not need to account for expense variability. The landlord receives predictable rental income without surprise deductions for property tax increases, insurance premium spikes, or unexpected maintenance costs.
The Three "Nets" Explained
Property Taxes
The tenant pays the full amount of real estate taxes assessed on the property, or their proportional share in multi-tenant buildings. This payment occurs either directly to the taxing authority or as a reimbursement to the landlord who pays the bill. Property tax reassessments that increase the tax burden fall entirely on the tenant, not the property owner.
Building Insurance
The tenant covers property insurance premiums, including coverage for the building structure and liability protection. Tenants may procure their own insurance policies meeting the landlord's requirements, or they reimburse the landlord for policy costs. Premium increases due to market conditions, claims history, or property location risk (coastal areas, fire zones) become the tenant's responsibility rather than reducing the landlord's net income.
Common Area Maintenance (CAM)
The tenant handles expenses for shared property areas including parking lot maintenance, landscaping, repairs, trash removal, snow removal, and utilities for common spaces. In multi-tenant properties, these costs are allocated proportionally based on each tenant's leased square footage. In single-tenant properties, the tenant covers all maintenance expenses for the entire property.
Most NNN leases make tenants responsible for operational maintenance, repairs to building systems like HVAC and plumbing, and routine upkeep. However, standard NNN leases typically leave major structural repairs with the landlord. Roof replacement, foundation work, and major building envelope repairs often remain landlord obligations unless the lease specifically transfers these risks.
Absolute NNN leases take the structure further by assigning even structural repairs to the tenant. These leases are sometimes called "bondable" because they create a pure income stream for the landlord with virtually no expense obligations. Many DST offerings feature absolute NNN properties because they provide maximum income predictability for passive investors.
Why This Structure Creates Predictable Income
The NNN structure emerged in the 1950s and 1960s following World War II, when a commercial real estate boom created demand for clearer expense allocation. National retail chains expanding across the country sought long-term leases with operational control over property expenses. Landlords gained predictable income streams without the management burden of fluctuating costs.
By the 1980s and 1990s, NNN leases became the dominant structure in single-tenant commercial real estate investments. Real estate investment trusts adopted the NNN structure for stable cash flow, and sale-leaseback transactions surged as corporations sold properties to investors while maintaining operational control through NNN leases.
For DST investors, this predictability matters because sponsors project quarterly distributions based on contracted rental income. When tenants absorb property taxes, insurance, and maintenance costs, the sponsor can forecast distributions with greater accuracy. Unexpected property tax increases or insurance premium spikes do not reduce the cash available for investor distributions.
This does not mean NNN properties are risk-free. Tenant defaults are not unheard of, and depending on how the lease or the guaranteeing entity is structured, your tenant might not be as financially robust or creditworthy as the name on the sign suggests. But during normal operations, the expense pass-through structure creates more stable cash flow than properties where the landlord bears operating expense risk and less predictable expenses.
Why DST Sponsors Prefer NNN Properties
When you review DST offerings, you will notice that many feature NNN lease structures. This is not coincidence. Sponsors structure DST offerings around properties that support predictable income projections, and NNN leases provide that foundation better than any alternative lease type.
Expense Predictability for Income Projections
DST sponsors must project distributions to investors across a 5-10 year hold period when they bring an offering to market. These projections appear in the private placement memorandum and form the basis for investor decision-making. Accuracy in these projections depends heavily on the lease structure.
In gross lease properties, the sponsor must estimate future property tax increases, insurance premium changes, and maintenance cost inflation. These variables introduce uncertainty. A property tax reassessment increasing annual taxes by 20% directly reduces cash available for distributions. Insurance premiums in coastal markets or fire zones can double in a single renewal cycle, cutting into projected returns.
NNN leases eliminate most of this projection risk. The tenant contractually absorbs these expense fluctuations. The sponsor projects distributions based on contracted rental income, which typically includes modest annual rent escalations of 2-3%. This creates a reliable baseline for distribution projections.
Institutional tenants prefer NNN leases for their own accounting clarity. A national drugstore chain leasing 200 locations wants direct control over property expenses at each site. They can manage costs, choose vendors, and maintain consistent standards across their portfolio. This preference means the highest-quality tenants gravitate toward NNN structures, which further improves the risk profile for DST investors.
Institutional-Quality Tenant Relationships
The tenant roster in NNN DST offerings differs markedly from typical commercial real estate. You will see Walgreens and CVS instead of local pharmacies. McDonald's and Starbucks instead of independent restaurants. FedEx and Amazon instead of regional logistics operators.
These tenants carry investment-grade credit ratings from agencies like Standard & Poor's, Moody's, and Fitch. Their financial strength provides reasonable confidence that rent payments will continue through economic downturns. This tenant quality results directly from NNN lease dynamics. Institutional tenants seek NNN structures for operational control, and sponsors seek institutional tenants for income reliability.
The combination creates a self-reinforcing cycle. Strong tenants sign NNN leases, which attracts institutional capital to NNN properties, which increases competition for deals with quality tenants, which reinforces tenant bargaining power and preference for NNN structures.
For DST investors, this means access to tenant credit quality that would be difficult to achieve through direct property ownership. A $100,000 DST investment might provide fractional ownership of a $10 million Amazon distribution center with a 15-year lease.
How NNN Lease Structure Creates Predictable DST Income
Understanding how rental income flows from tenant to investor helps explain why NNN properties dominate DST offerings. The structure creates fewer points where cash flow can be disrupted by expense variability.
Expense Pass-Through Mechanics
Most NNN leases require monthly expense payments alongside base rent. The landlord estimates annual property taxes, insurance, and CAM costs, divides by twelve, and bills the tenant monthly. At year-end, the landlord reconciles actual expenses against estimated payments and issues a bill or refund for the difference.
This monthly payment structure means the DST receives relatively consistent cash flow throughout the year. Property tax payments due in lump sums do not create cash flow gaps because the tenant has been paying monthly installments. Insurance renewals do not force the DST to dip into reserves because the tenant reimburses the premium.
Compare this to gross lease properties where the landlord receives fixed rent while expenses fluctuate. A $50,000 property tax bill in December creates a cash flow gap if reserves are insufficient. A 30% insurance premium increase reduces net operating income, which may force the sponsor to reduce distributions or draw from reserves.
In NNN structures, the DST sponsor typically holds modest reserves for unexpected expenses that fall outside the NNN lease terms. But these reserves remain largely intact during normal operations because tenants cover virtually all routine costs. This reserve stability provides a cushion for the relatively few expenses that might affect investor distributions.
Distribution Stability for Investors
DST sponsors typically project annual distributions as a percentage of invested capital which is paid monthly or quarterly depending on the offering. These projections are not guarantees, and actual distributions can fluctuate based on tenant performance, property expenses, and market conditions. Investors use these projections to plan retirement income, estimate tax obligations, and evaluate whether the return justifies the risks.
NNN lease structures support these projections because the income component is contractual. If a tenant signs a 15-year lease at $500,000 annual rent with 2% annual increases, the sponsor can project rental income with reasonable confidence across the entire hold period. Barring tenant default, that income will arrive as scheduled.
Distributions may still fluctuate due to reserves, capital expenditures, or property-level debt service changes. But the rental income component remains stable, which anchors the distribution projection. Sponsors can model different scenarios for expenses that might affect distributions without needing to guess whether property taxes will increase 10% or 30% in year three.
For investors comparing DST offerings, this predictability allows more accurate evaluation. You can assess whether the projected distribution aligns with the tenant credit risk and lease term rather than trying to predict sponsor expense management competence.
Types of NNN Properties in DST Offerings
DST sponsors acquire different property types based on tenant demand, market conditions, and investor appetite for specific risk-return profiles. Understanding the major NNN property categories helps you evaluate diversification across your DST portfolio.
Retail NNN Properties
Retail properties with NNN leases dominate DST offerings because long-term leases with creditworthy tenants create ideal passive income profiles.
Drugstores
Walgreens and CVS properties appear frequently in DST offerings. These tenants sign 15-25 year leases for strategically located corner sites. The essential nature of pharmacy services provides recession resistance, and the long lease terms create stable income across full DST hold periods. Investment-grade credit ratings (BBB from S&P for CVS) support lower cap rates, typically 5.5-6.5% in recent markets.
Dollar Stores
Dollar General and Dollar Tree operate over 35,000 combined locations, providing numerous acquisition opportunities for DST sponsors. These tenants typically sign 10-15 year leases for 7,000-10,000 square foot buildings. New construction deals often feature 15-year absolute NNN leases with 10% rent increases every five years. Properties trade at 6.5-8.0% cap rates depending on location and tenant credit specifics.
Quick-Service Restaurants
McDonald's, Starbucks, and similar brands occupy high-traffic locations with drive-through access. Sponsors prioritize sites with 20,000+ daily vehicle counts, which support premium rents and property values. Lease terms typically run 10-15 years, with corporate guarantees preferred over franchise tenant credit. Cap rates generally range from 6.5-7.75% depending on brand strength and site quality.
E-commerce impact on retail remains a consideration. Drugstores and dollar stores have demonstrated relative resilience because their products (prescriptions, everyday essentials) support store visits despite online alternatives. Quick-service restaurants obviously require in-person transactions. But broader retail trends warrant attention when evaluating retail NNN properties in DST offerings.
Industrial and Warehouse NNN
Distribution centers and logistics facilities represent growing segments of NNN DST offerings. E-commerce expansion drives demand for warehouse space near population centers, and tenants like Amazon, FedEx, and UPS sign long-term leases for purpose-built facilities.
These properties typically feature single tenants occupying large buildings (100,000+ square feet) with specific operational requirements like high ceiling clearances, numerous dock doors, and substantial parking for delivery vehicles. The specialized nature creates re-tenanting challenges if the original tenant departs, but strong initial tenant credit and long lease terms mitigate this risk during the DST hold period.
Industrial NNN properties typically trade at 5-6.5% cap rates in current markets, reflecting strong tenant demand and investment-grade credit profiles for major logistics operators.
Medical and Healthcare NNN
Medical office buildings, dialysis centers, and urgent care facilities offer recession-resistant tenant demand. Healthcare utilization continues through economic downturns, providing income stability that appeals to conservative DST investors.
Dialysis center tenants like DaVita and Fresenius sign long-term leases for specialized facilities. The cost of relocating dialysis equipment and the captive patient base create tenant stickiness that supports long lease terms. Medical office tenants, particularly large physician groups backed by hospital systems, also sign extended leases matching their practice growth plans.
These properties often feature absolute NNN structures because medical tenants want full operational control. Sponsors hold these assets through 15-25 year periods matching lease terms, making them suitable for DST investors seeking maximum hold period stability.
Single-Tenant vs Multi-Tenant NNN
Single-tenant properties dominate DST offerings because they match the passive investment structure. One tenant, one lease, predictable income. The sponsor manages one tenant relationship rather than juggling multiple leases with different expiration dates.
This simplicity creates concentration risk. If the single tenant defaults or vacates at lease expiration, income drops to zero. Re-tenanting can take 6-18 months, during which the DST must cover all property expenses from reserves while distributions to investors cease or decline substantially.
Multi-tenant properties distribute this risk across several tenants. Staggered lease expirations mean the property maintains partial occupancy during turnover. But multi-tenant properties require more active management, which conflicts with DST passive investment restrictions under IRS Revenue Ruling 2004-86.
Single-tenant properties typically trade at higher cap rates than comparable multi-tenant properties with similar aggregate credit quality. This cap rate premium compensates investors for concentration risk. When evaluating single tenant NNN properties in DST offerings, pay particular attention to remaining lease term, tenant credit rating, and renewal option terms.
Evaluating NNN Tenant Credit in DST Due Diligence
The tenant's financial strength matters more than the building's condition or location in NNN property valuation. A Walgreens with a 20-year lease in a secondary market often trades at a lower cap rate than a non-investment-grade tenant in a prime urban location with a 5-year lease.
Credit Rating Basics for Investors
Credit rating agencies provide independent analysis of corporate financial strength. Standard & Poor's, Moody's, and Fitch evaluate companies' ability to meet financial obligations and issue public ratings ranging from AAA (highest quality) to D (default).
The investment-grade threshold falls at BBB- (S&P/Fitch) or Baa3 (Moody's). Tenants rated at or above this level are considered investment-grade. Ratings below this threshold are classified as speculative or high-yield.
S&P's rating scale provides a framework for understanding tenant credit:
- AAA: Extremely strong capacity to meet financial commitments
- AA: Very strong capacity to meet financial commitments
- A: Strong capacity but somewhat susceptible to economic conditions
- BBB: Adequate capacity but more subject to adverse economic conditions
- BB and below: Speculative, with increasing default risk at lower ratings
Most NNN tenants in DST offerings carry BBB ratings or higher. CVS and Dollar General hold BBB ratings from S&P. McDonald's holds a BBB+ rating. Home Depot carries an A rating, while Walmart achieves AA.
Investment-Grade vs Non-Investment-Grade Tenants
Investment-grade tenants command lower cap rates because their default probability is lower. A CVS with BBB rating and 20 years remaining on its lease might trade at a 6.0% cap rate, while a non-investment-grade tenant in an identical building with the same lease term might require a 7.0-7.5% cap rate to attract buyers.
This spread compensates investors for increased default risk. Credit rating agencies estimate that BBB-rated companies have roughly a 0.2% probability of defaulting within one year, while BB-rated companies face approximately 0.7% annual default probability. These probabilities compound over longer periods, but the relative risk difference persists.
Non-investment-grade tenants are not inherently poor investments. Many regional operators and growing companies lack investment-grade ratings simply because they don't meet the size or disclosure requirements for rating agency coverage. Some investors accept higher credit risk in exchange for higher cap rates and yields.
The key is matching tenant credit risk with your portfolio objectives. Understanding NNN investment risks helps frame these decisions. If you are building a DST portfolio for retirement income, investment-grade tenants provide greater confidence in distribution stability. If you are allocating a smaller portion of capital to commercial real estate and can tolerate higher volatility, non-investment-grade tenants offering 100-150 basis points of additional yield might fit your strategy.
What Anchor1031 Looks for in Tenant Quality
Beyond credit ratings, several factors influence tenant evaluation for DST offerings.
DST sponsors conduct this analysis before acquiring properties for offerings. As an investor, you can review their conclusions in the offering memorandum and assess whether their tenant credit evaluation aligns with your risk tolerance.
NNN Cap Rates: What to Expect in DST Offerings
Cap rates provide a starting point for understanding NNN property returns, though your actual DST returns will differ due to leverage, fees, and hold period considerations. For a deeper dive into calculating NNN returns, see our dedicated calculator guide.
Understanding Cap Rate Fundamentals
The capitalization rate equals net operating income divided by property value. For NNN properties, this calculation simplifies because operating expenses are minimal. If a property generates $400,000 in annual rent and the landlord pays $10,000 in property management fees and reserves, the NOI is $390,000. Divide that by a $6 million purchase price and the cap rate is 6.5%.
Cap rates move inversely with property values. Rising values push cap rates lower. Declining values push cap rates higher. Interest rate changes affect cap rates because real estate competes with bonds and other fixed-income investments for capital. When 10-year Treasury yields rise from 3% to 5%, investors demand higher cap rates to maintain an attractive spread over risk-free returns.
From 2022 through early 2025, rising interest rates pushed NNN cap rates from the low 5% range to 6.5-7.0% as the Federal Reserve raised its policy rate. By late 2025, Fed rate cuts brought the federal funds rate to 3.50-3.75%, which helped stabilize cap rates, with some compression in the highest-quality assets.
How Cap Rates Translate to DST Returns
DST sponsors acquire properties at specific cap rates, then project investor returns after accounting for leverage and fees.
Current market data shows NNN cap rates ranging from 5.5% to 7.5% depending on tenant credit quality and property type:
- Investment-grade tenants (CVS, Kroger, Dollar General): 5.5-6.5%
- Non-investment-grade tenants: 7.0-7.5%
- Single-tenant retail: 6.5-7.5%
- Industrial/warehouse: 5.0-6.5%
These cap rate ranges reflect recent market data and are not indicative of future property values or investment returns. Property-level cap rates also differ from investor-level returns for several reasons.
Leverage
Many DSTs use 40-60% loan-to-value financing. If debt costs 6% and the property yields 6.5%, the modest spread creates positive leverage that increases cash-on-cash returns to equity investors. However, leverage also magnifies losses if property values decline.
Fees
DST sponsors charge acquisition fees (1-3% of purchase price), annual asset management fees (0.5-1% of property value), and disposition fees (1-3% at sale). These fees reduce investor returns below the underlying property cap rate.
Hold Period
Projected total returns depend on exit assumptions. If the sponsor acquires a property at a 6.5% cap rate and expects to sell at a 7.0% cap rate in seven years, the property value will decline even if rental income remains stable. Conversely, cap rate compression to 6.0% at exit would increase property value and boost total returns.
NNN DST Year 1 cash-on-cash distributions have historically ranged from approximately 5% to 7%, though actual distributions depend on tenant credit quality, leverage, and property performance and can change over the hold period. Total investor returns also depend on proceeds from the eventual property sale, which are not guaranteed and vary based on market conditions at disposition.
Red Flags in Cap Rate Projections
Several warning signs suggest cap rate projections may be overly optimistic or reflect hidden risks.
When evaluating DST offerings, compare projected cap rates and returns against recent transactions in the same property type and tenant credit quality. Material deviations warrant additional scrutiny.
Direct NNN Ownership vs DST: Which Path Is Right for You?
Investors seeking NNN property exposure face a choice between direct ownership and DST investment. Each path offers distinct advantages and limitations.
When Direct NNN Makes Sense
Direct ownership provides maximum control over property selection, tenant selection, lease negotiation, and exit timing. You decide whether to accept a tenant's renewal proposal or pursue alternative tenants. You can sell when market conditions favor sellers rather than waiting for a DST sponsor to make disposition decisions for all investors.
This control requires capital and expertise. Quality single-tenant NNN properties with investment-grade tenants typically trade between $2-10 million. Financing typically requires 25-40% down payments, meaning you need $500,000-$4 million in equity capital for a single property.
Building robust diversification through direct ownership requires even more capital. A five-property portfolio diversified across different tenants, property types, and geographic markets might require $3-5 million in equity capital. This concentrates significant wealth in commercial real estate, which may not align with overall portfolio construction goals.
Direct ownership also demands time. Tenant correspondence, lease administration, property tax appeals, insurance renewals, capital expenditure decisions, and eventual sale management all require active involvement. Many investors seeking passive income discover that "triple net" and "passive" are not synonymous in direct ownership contexts.
When DST Is the Better Path
DST structure solves several challenges that direct NNN investors face.
The tradeoffs are control, flexibility, and liquidity. DST investors cannot influence management decisions, cannot force property sales, and cannot modify the investment strategy after closing. The trustee manages the property according to the offering terms regardless of individual investor preferences. DST interests are illiquid securities with no guaranteed secondary market, and sponsor fees (typically 5-10% upfront plus ongoing management and disposition fees) reduce net returns compared to direct ownership.
Frequently Asked Questions
What is a good cap rate for a triple net lease?
NNN cap rates typically range from 5.5% to 7.5% depending on tenant credit quality and lease terms. Investment-grade tenants like Walgreens and FedEx command lower cap rates (5-6%) because their strong credit ratings reduce income risk. Non-investment-grade tenants require higher cap rates (6.5-7.5%) to compensate investors for increased default probability. When evaluating DST offerings, remember that your Year 1 cash-on-cash return will differ from the property cap rate due to leverage and fees, and actual distributions can change over the hold period.
Who pays for repairs in a triple net lease?
In standard triple net leases, tenants pay for most repairs including HVAC systems, plumbing, electrical, and routine maintenance. Landlords typically remain responsible for major structural repairs like roof replacement and foundation work. Absolute NNN leases transfer even these structural obligations to tenants, creating pure income streams with minimal landlord expenses. DST offering documents specify which lease type applies to each property and detail the exact allocation of repair responsibilities.
What is the difference between NNN and absolute NNN?
Standard NNN leases require tenants to pay property taxes, insurance, and maintenance, but landlords handle structural repairs like roof and foundation work. Absolute NNN leases (also called bondable leases) transfer all expenses and repairs to tenants, including structural components. Landlords in absolute NNN arrangements receive pure rental income with virtually no expense obligations. Many DST offerings feature absolute NNN properties because they provide maximum cash flow predictability for passive investors.
How long are typical triple net leases?
NNN leases typically run 10-25 years, with 15-year terms common for new construction properties. Longer lease terms generally correlate with lower cap rates because they provide greater income certainty. Shorter lease terms create re-tenanting risk that investors price into higher cap rates. When reviewing DST offerings, pay attention to remaining lease term rather than original term, as this affects both income stability during the DST hold period and exit value when the sponsor eventually sells the property.
Can I do a 1031 exchange into a triple net lease property?
Yes, NNN properties qualify as like-kind real estate for 1031 exchanges. You can exchange into direct NNN properties or into DST interests that own NNN properties. DSTs specifically qualify for 1031 exchanges under IRS Revenue Ruling 2004-86, which holds that an exchange of real property for interests in a qualifying DST is treated as an exchange of real property (not a certificate of trust or beneficial interest) under Section 1031. DST investments are particularly popular for 1031 exchanges because they eliminate the property identification hunt, require no personal loan guarantees, and close quickly within the 180-day exchange deadline.
What happens when a triple net lease expires?
At lease expiration, three outcomes are possible: the tenant renews the lease (typically at market rates), the property re-tenants to a new occupant, or the owner sells the property. For direct NNN owners, lease expiration creates significant work and risk around negotiating renewals or finding replacement tenants. DST investors do not face these decisions directly because the trustee handles all lease negotiations and re-tenanting efforts. If a lease expires during the DST hold period and the tenant vacates, distributions typically decline until a replacement tenant is secured.
Are triple net lease investments passive?
Direct NNN ownership requires more involvement than commonly portrayed. Property owners handle tenant correspondence, coordinate property inspections, manage tax and insurance renewals, approve capital expenditures, and eventually manage property sales or re-tenanting. While less demanding than gross lease properties, direct NNN ownership is not truly passive. DST investments in NNN properties qualify as passive because professional trustees handle all property management and operational decisions. Investors receive quarterly distributions and annual tax documents without involvement in day-to-day property matters.
Next Steps for DST Investors
Understanding triple net lease mechanics provides the foundation for evaluating DST offerings effectively. When you review offering documents, you will recognize how lease structure affects distribution projections, how tenant credit quality influences risk, and why certain property types appear more frequently in DST portfolios.
The next step involves applying this knowledge to specific offerings. Compare tenant credit ratings across different DSTs. Evaluate whether cap rates align with current market conditions for similar properties. Consider how remaining lease terms match your investment time horizon. Build a portfolio diversified across different tenants and property types rather than concentrating in a single offering.
DST investments are illiquid and hold periods typically span 5-10 years. The decision to invest requires confidence in the underlying property fundamentals. Because NNN DST investments involve both tax planning and real estate analysis, consulting with a CPA or tax advisor familiar with your situation is an important step before committing capital. Triple net lease structure creates income predictability, but tenant credit quality, lease terms, and property location ultimately determine whether that predictable income continues throughout your investment holding period.
Every investor's situation is different, and the right structure depends on your goals, tax position, and risk tolerance. The Anchor1031 team can help you evaluate specific options with that context in mind. Reach us at (502) 556-1031 or schedule a call at anchor1031.com.
About Thomas Wall
Thomas Wall is a Partner at Anchor1031, where he specializes in helping clients navigate 1031 exchanges, Delaware Statutory Trusts, and alternative real estate investments. With extensive experience in commercial real estate and capital markets, Mr. Wall is committed to providing clear, honest guidance that puts client interests first.
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Disclosure
Tax Complexity and Investment Risk
Tax laws and regulations, including but not limited to Internal Revenue Code Section 1031, bonus depreciation rules, cost segregation studies, and other tax strategies, contain complex concepts that may vary depending on individual circumstances. Tax consequences related to real estate investments, depreciation benefits, and other tax strategies discussed herein may vary significantly based on each investor's specific situation and current tax legislation. Anchor1031, LLC and Great Point Capital, LLC make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about all tax aspects with respect to your particular circumstances. Please note that Anchor1031 and Great Point Capital, LLC do not provide tax advice.
The information contained in this article is for general educational purposes only and does not constitute legal, tax, investment, or financial advice. This content is not a recommendation or offer to buy or sell securities. The content is provided as general information and should not be relied upon as a substitute for professional consultation with qualified legal, tax, or financial advisors.
Tax laws, regulations, and IRS guidance regarding 1031 exchanges are complex and subject to change. Information herein may include forward-looking statements, hypothetical information, calculations, or financial estimates that are inherently uncertain. Past performance is never indicative of future performance. The information presented may not reflect the most current legal developments, regulatory changes, or interpretations. Individual circumstances vary significantly, and strategies that may be appropriate for one investor may not be suitable for another.
All real estate investments, including 1031 exchanges, are speculative and involve substantial risk. There can be no assurance that any investor will not suffer significant losses, and a loss of part or all of the principal value may occur. Before making any investment decisions or implementing any 1031 exchange strategies, readers should consult with their own qualified legal, tax, and financial professionals who can provide advice tailored to their specific circumstances. Prospective investors should not proceed unless they can readily bear the consequences of potential losses.
While the author is a partner at Anchor1031, the views expressed are educational in nature and do not guarantee any particular outcome or create any obligations on behalf of the firm or author. Neither Anchor1031 nor the author assumes any liability for actions taken based on the information provided herein.