The benefits of triple net lease investment properties for retirement
Investors in retirement realistically need to plan for hundreds of thousands of dollars in medical expenses. One dire alternative to not having sufficient income for lifestyle and medical expenses means asset forfeiture to the state – and who wants that?!
Aside from the ability to plan around their medical expenses, retiring investors need to become more hands-off from their portfolios so that they literally take a step back and begin to enjoy the fruits of their lifelong endeavors. Many investors also have legitimate concerns about leaving “appropriate” assets for their heirs – who may be even less interested than their parents in owning management intensive real estate properties. At the same time, any investor worth their salt, has the overarching objective of maintaining and growing inter-generational wealth! Triple net lease properties are the best asset class for all these sound objectives. Thus, as soon as retiring investors arrive at significant net worth they should not crave high yield; instead stability, predictability and passivity of returns/income should be their beacons. High net worth investors can always buy large NNN properties for incremental cap rates and can accomplish double-digit returns factoring in mortgage reduction and tax advantages. Investing cannot get better than the scenario described above in any asset class, especially since an NNN investor controls the land, which always appreciates over long periods of time and adds a sizeable ‘balloon’ to the net lease investment.
Investors should take particular note that generating stable yet exciting IRRs from property types other than triple net lease NNN requires extensive experience in specialized and highly nuanced asset classes e.g. strip centers, or self-storage or senior living or industrial, etc. Alternatively, some investors contemplating retirement may regards stocks, bonds and annuities as ‘safe havens’ for retirement. However, they should realize that these are only “paper” assets, and for those who have been lifelong “real” asset investors, “paper” assets should not form a core portfolio, as it will be a huge psychological shift. Therefore, triple net properties should be the automatic go-to for core portfolios for investors in or near retirement. The mantra for retiring investors should be: collect “mailbox rent”, travel, and enjoy life without actively managing any properties! Relish the peace of mind knowing your assets are on “auto pilot” and your income is stable and your asset will greatly appreciate for a couple of decades.
The key mechanism to achieve a great retirement end-game is a smooth 1031 exchange into triple net lease assets. And, Robert Gamzeh and his team at The Triple Net Investment Group can expertly guide you into replacing your management intensive assets with net lease replacement properties that will grow your wealth with an immediate, stable, predictable, income stream with predetermined rent increases and the possibility of double digit, tax-advantaged cap rates. For years, Robert and his team have skillfully guided clients in or near retirement, into exciting yet passive-income, NNN assets. Meet us and get to know the world of difference we will make for your retirement world. Call 202-361-3050 today and reach Robert directly for a complimentary consultation.
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