Tax Strategy · 1031 Exchange

Defer Capital Gains.
Preserve Your Wealth.

The 1031 exchange is the single most powerful tool available to real estate investors — and NNN triple net properties are the ideal replacement asset.

A 1031 exchange (IRC Section 1031) allows you to sell an investment property and reinvest the proceeds into a "like-kind" replacement property — deferring all capital gains taxes in the process. Done correctly, exchanges can be rolled forward indefinitely, building generational wealth without a single dollar lost to the IRS at the time of sale. NNN properties — with their passive income, corporate tenants, and long lease terms — are widely regarded as the cleanest, most reliable replacement assets available.

The Exchange Timeline

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Day 0
Close on Relinquished Property
Your property sells. Proceeds are transferred directly to a Qualified Intermediary (QI) — you cannot take constructive receipt of the funds.
Exchange Begins
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Day 45
Identify Replacement Property
You must submit a written identification of your replacement property (or properties) to your QI. No extensions — this deadline is absolute.
Identification Deadline
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Day 180
Close on Replacement Property
You must close on your identified replacement property within 180 days of your original sale. Taxes are deferred — your equity rolls forward intact.
Exchange Deadline

You Have Three Options for Identifying Replacement Properties

Most Common
3-Property Rule
Identify up to 3 properties of any combined value. You may close on one, two, or all three. This is the most commonly used rule and the simplest to comply with.
Flexibility Option
200% Rule
Identify any number of properties, provided the total fair market value of all identified properties does not exceed 200% of your relinquished property's value.
Advanced Strategy
95% Exception
Identify any number of properties at any total value, provided you actually close on at least 95% of their combined fair market value. Rarely used, but available for complex portfolios.

Why NNN Properties for a 1031 Exchange

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Zero Landlord Obligations
In an absolute NNN lease, the tenant is responsible for all property expenses — taxes, insurance, and maintenance. You collect the check. That's it.
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Corporate-Grade Guarantees
Your lease is backed by Fortune 500 companies — McDonald's, Walgreens, 7-Eleven, Chase Bank, Dollar General. Investment-grade credit at the corporate level.
⏱️
Close Within Your 180-Day Window
NNN transactions close in 30–45 days — no construction, no renovation, no surprises. The tight exchange deadline is rarely an obstacle with net lease.
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Predictable, Long-Term Income
Leases typically run 10–25 years with built-in rent bumps of 5–10% every 5 years — or 1–2% annually. Contractual income that compounds over time.

Ready to Begin Your 1031 Exchange?

We specialize in identifying and closing NNN replacement properties within your exchange window. Our service is completely free to the buyer.

📞 954-296-6955  |  11015 Gatewood Dr Suite 102, Lakewood Ranch, FL 34211

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