Off-Market CRE Specialists

1031-1033 Zero Cash Flow Solutions

Off-Market Investment Opportunities
1031 & 1033 Exchanges,
Foreclosure, Deed-in-Lieu

Prime Net assists in deferring capital gains taxes resulting from a 1031 or 1033 exchange or from foreclosures or deeds given in lieu. Our zero cash flow program may also be of interest to you if you seek to acquire underperforming loans on heavily depreciated properties.

1. Estate Planning - Maximize Tax-Deferred Equity

Acquiring an undivided fee simple interest in long-term, bond net leased, credit tenanted properties, on a securitized basis, provides an excellent solution to certain 1031 or 1033 requirements. Depending on the debt and equity characteristics of your relinquished property, it could be the best approach for you to use in order to extract significant equity on a tax-deferred basis.

2. Foreclosure/Deed in Lieu - Capital Gains Tax Relief

We provide debtors properties with long-term, non-recourse mortgages, which will be fully amortized by rent paid on absolutely net leases by strong investment grade companies. The debtor - now able to avoid current capital gain taxes - gives a deed in lieu of a foreclosure.

Federal, state and local capital gain taxes (where applicable) are based on the difference between the depreciated basis of a property (from the original acquisition price) and the face amount of the "forgiven" loan. The federal rate is increased from 15% to 25% to the extent a property has been depreciated. The out-of-pocket saving can be substantial.

Another way we can be of service to you is if you are acquiring non-performing mortgages, specifically, non-performing mortgages on properties that have been heavily depreciated. We can assist the borrower to structure a "Deed in Lieu" transaction, thus helping you to avoid the costly and time-consuming foreclosure process.