1031 Exchange
The term 1031 exchange refers to a section of the Internal
Revenue Code dealing with Tax deferred exchanges. This code provision states
that property owners can sell their Investment property and then reinvest those
proceeds in another property without incurring a taxable incidence at the time
of sale.
NN Lease
Tenant is responsible for all CAM, Taxes, and Insurance.
Landlord responsible for roof & structure, occasionally parking.
NNN Lease
Tenant is responsible for all CAM, Taxes, Insurance, including roof & structure and parking.
Absolute NNN Lease
Tenant is responsible for all expenses including roof &
structure. However, Lease can be cancelled for certain acts of god.
Bond Lease
Same as Absolute NNN except Tenant is responsible for
everything and under no circumstances can Tenant cancel the lease.
Gross Lease
Tenant pays only Base rent. Landlord is responsible for
all expenses.
Modified Gross Lease
Same as Gross Lease except expenses designated in the Lease.
In addition, some Gross Leases have expense stops. In these cases tenants pay
all expenses above a preset number.
CPI Increases
Some leases contain rental increases during the term of the
lease. These increases can be either fixed specified amounts or they can be
variable (CPI) based on cost of living indexes specified in the lease. These
usually have annual and Total limits.
N.O.I.
Net Operating Income = Income after any operating expenses and
any reserves
Cap Rate
N.O.I divided by the Purchase Price Indicates yield on a
non-leveraged purchase
COC (Cash-on Cash)
N.O.I minus Debt Service divided by the down payment.
Indicates yield on cash invested. (COC = Cap rate on non-leveraged purchase)
Triple Net Investments LLC 
