Learn

The questions exchangers actually ask.

Short pieces on the clock, the lease, tenant credit, boot, and the rest, written the way a broker would explain it across the table.

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  The clock

  The 45 and 180 day clock, in plain English.

  Two deadlines decide whether your exchange holds. Here is how each one actually works, and what happens if you miss them.

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  The search

  National search, or your own backyard.

  Where the right replacement tends to be, and how wide to cast before the clock starts running.

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  The tenant

  How to read tenant credit.

  What a rating tells you, and the three things it leaves out of the rent check you are buying.

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  The intermediary

  The intermediary we send you to, and the credit we hand back.

  Deferred is a modern qualified intermediary that pays interest on your exchange funds while they are held. Deferred pays a referral of 15 percent of that interest, and Shop brokers credit it straight back to you off commission. We do not try to make money servicing your exchange. We try to make sure it is done well.

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  The return

  Cap rate is not your return.

  What cash-on-cash and the dollar walk show that a cap rate quietly hides.

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  The lease

  Absolute net, or modified net.

  What you are actually on the hook for, building by building, after you close.

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  The term

  Why lease term is the whole game.

  What WALT measures, and the year the clock on your rent really starts to matter.

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  The tax

  Boot, and how to avoid an accidental tax bill.

  Replace your equity and your debt, and the gain stays deferred. Fall short on either, and the difference is taxed.

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  The risk

  One building, one tenant.

  How to think about putting it all behind a single roof and a single signature.

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  The passive route

  When you would rather not operate.

  The DST option: passive income for buyers who do not want the toilets and the tenants.

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  The income

  The rent you will actually collect in year ten.

  What escalations do to your income over a long hold, and why the year-one number is only the start.

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  The exit

  Refinance, or sell, when the loan comes due.

  Two ways to handle a maturity, and what each one does to your basis and your next move.