How to Buy a NNN Property in a Tax Free State

Hi, my name is Alex Casablanca, Managing Broker at Casablanca Triple Net Lease Advisors. We are a boutique brokerage firm based in Orlando, Florida specializing in Selling NNN Investment Properties Nationwide USA. We represent Buyers, Sellers and 1031 Exchange investors in finding and negotiating the best NNN property according to their investment goals and risk tolerance.

Today I’m going to talk to you about How to Buy a NNN Property in a Tax Free State. Buying a NNN Property in a Tax Free states is an excellent opportunity for investors that are looking to get the most on their investment income without having to pay state income taxes. NNN Properties in Tax Free States are also for a 1031 Exchange replacement property. 

According to Investopedia there are 9 States without some sort of No Income State Tax, which are. Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, New Hampshire, and Wyoming do not levy state income taxes, while New Hampshire doesn’t tax earned wages.

Particularly Florida and Texas are the Tax Free states that NNN investors prefer the most. Both states have a strong economy, strong population growth, and all-year-long warm weather, among some of the other considerations of investors to invest in Florida and Texas

It is important to highlight that every State and the IRS have their own Tax Code, Rules & Regulations. Before considering buying a property in one of those states or any other state you should consult with your Accountant or Tax Attorney to make sure if your investment would qualify according to the particular state tax laws

But now the question is, how to buy a NNN Property in one of those tax free states? Here are 6 simple steps on how to buy a NNN property in a Tax Free State.

  1. Hire a knowledgeable and experienced NNN Buyer’s Broker with comprehensive knowledge of the NNN Market in Tax Free States with access to on and off the market properties for sale in Tax Free States. 
  2. Define your Investment Criteria – Your investment criteria is comprised of several important key elements, such as: your Price Range, Cap Rate Expectations, Risk Tolerance, Target Locations, Tenants of Interest, Years Remaining on the Lease, Lease Guarantor, among others.  
  3. Start Looking for Properties that are in line with your investment criteria in the tax free states that you are interested the most. As your Buyer’s Broker we will do that job for you. We will assist you with market research, property evaluation and selection, offer submissions and negotiations, due diligence, and closing. We work quickly and decisively towards finding for your consideration as many properties as possible within your criteria. 
  4. Start submitting Offers for the property or properties that most closely match your criteria. As your Buyer’s broker we will do that job on your behalf as well. Once you decide the price that you want to offer, we put together a Letter of Intent for your signature, then we will submit it to the Seller and will negotiate the offer on behalf of you.
  5. Have your #1 property selection under contract. Once you have your #1 property selection under contract, then hire an experienced Real Estate attorney with previous experience with NNN transactions. Once your offer is accepted, your attorney will review the Purchase Agreement, the Lease, the Title, and the rest of the due diligence documents on your behalf.
  6. Close on your NNN Property in a Tax Free State – Once the Purchase Agreement is signed, and the due diligence period is complete, you are now ready to close on your transaction. The title agent will circulate copies of the closing statement before closing, you will review it with your attorney and then you will be ready to close.

Although Buying a NNN Property in a Tax Free state could be seen as stressful and overwhelming, the key is to start early and hire the key competent professionals to assist you. If you do that, the process can really become really straightforward and stress-free.

At Casablanca, we are a Florida Licensed Real Estate Broker. We can also represent you as a Buyer in any of the Tax Free states. We have extensive knowledge and experience in the NNN market in Tax Free states with over $100 million in NNN transactions closed. We can guide you along the way through a successful NNN property acquisition. We will assist you from the early stages of market research, identifying potential properties, submitting offers and negotiating them, due diligence, up to the closing table. We have helped many NNN Buyers and 1031 Exchange Investors in finding and negotiating the best property according to their investment goals and risk tolerance.

Moreover, we represent our Buyer’s for Free since we get paid from the Seller, so you get our expert advice and representation at no additional cost to you. In addition, and We pay for our Buyer’s Closing costs up to a maximum of $10k. This incentive will offset or cover completely the major Buyer’s closing costs expenses such as Title Fees, Attorney Fees, Recording Fees, among others. We are the Brokers that give you more in exchange for your trust. 

If you have any questions about how to buy a NNN Property in a Tax Free state or in any other state feel free to contact me directly at 407-205-7570 or you can also email me at [email protected]. Feel free to call me anytime at your convenience, I’m always available for my clients. Thank you very much for watching this video and I’m looking forward to being your Broker in your next property acquisition in a Tax Free State.

NNN Properties for Sale Tax Free States