Master Lease
We work with owners and can master lease an apartment building or mobile home park and can practically turn a very management intensive asset into a NNN leased asset.
We are finding many owners may not be interested in selling today, but have many goals that are not currently met with their investment. Some of the key goals we consistently hear from owners are a desire to 1. Ensure long term cash flow 2. Eliminate management responsibility 3. Effectively estate plan 4. Eliminate the risk and hassle of finding a 1031 exchange property.
We can help an owner achieve each of these goals by executing a master lease of their property. A master lease program effectively transforms an owner’s existing asset into a NNN lease property. They will receive their current income with no work from them and increases over time. They will receive NNN lease payments each month, so not only will their income grow over time, but also we will be fully responsible for all property operating expenses, property management, and capital expenditures; this provides they a turnkey investment without having to find a 1031 exchange. Moreover, we are ready to invest up to millions of dollars into a property, which will provide them with even greater security and with a clear path to grow their current income. We have a fully staffed management team and have the expertise of owning more than 3,600 units and professionally managing for our own account.
We often find that a Master Lease work best for investors who want to :
- Ensure long term cashflow – Cashflow their current net operating income with increases over time, without any work on their part
- Effectively estate plan – Purchase option that can only be executed no earlier than Seller-elected life event, with the potential of future favorable tax treatment
- Eliminate management responsibility – Master lease requires us to immediately take all property management responsibilities
- Eliminate the risk and hassle of a 1031 Exchange – Master lease eliminates the risk and need to find an exchange property; we are able to convert their investment into their own NNN asset. We will continue to improve their own security for the asset they know best!