Do individual investors most often hold NNN leases in their own names or do they set up corporations? Why

In Buying Property - Asked by Dave K. - Jul 30, 2010
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Cstore X.
Broker/Agent
Germantown, TN

They'd set up a corporation / biz entity to 1) Maximize tax benefits and/or 2) Minimize liability. Every situation's different, so it's hard to know the tax benefits to the individual investor controlling the NNN lease (consult CPA), but liability would probably be a bigger issue. A NNN lease is usually a pretty solid investment, and something the investor wouldn't want to broadcast to the world (by holding in his/her own name)... though some people don't care and just carry umbrella insurance to protect them from liability.

Jul 30, 2010
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Rob B.
Chandler, AZ

It depends greatly on the individual investor. One must consult with his or her own real estate tax specialist, ie: financial planner, CPA or combination thereof). There are several considerations that can only be applied on an investor-by-investor basis.
Rob Baird, CA RE Lic. #544165, (one of the oldest active licenses in CA)

Aug 2, 2010
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Rob B.
Chandler, AZ

There are many considerations with regard to how one should hold title. With regard to NNN properties it is highly recommended that you seek the advice of a good real estate financial expert, such as a CPA, a certified financial planner or a combination of both. Through an analysis of the deal and the investor, in their opinion they can provide the best answer to an individual's need.
Rob Baird, CA RE Lic #544165, (One of the oldest active RE licenses in CA)
951-515-5855

Aug 2, 2010
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Monica M.
Owner/Investor
Valencia, CA

I have yet to see a single commercial property that has been purchased by an individual investor. It's not smart to invest in commercial property without buying it under an LLC for tax purposes and asset protection reasons.

Sep 8, 2010
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