The O’Shea Net Lease Advisory provides net lease advisory services for IRC 1031 exchange clients and other risk-averse Investors. Our proprietary 76,500+/- NNN investment property data base, combined market intelligence and deal-making relationships, affords our clients a "BRC Market Edge." We serve multi-family investors and taxpayers who may wish to defer their substantial capital gain liability by utilizing IRC 1031 exchange provisions. We specialize in credit tenant net leased assets which we view a "fungible commodities" to provide solutions for 1031 Exchanges; partnership basis solutions and foreclosure strategies in an increasingly volatile investment market. These assets afford an investor a stable, secure, predictable source of a return on their equity to diversify their portfolios from higher yield, more risky investment vehicles. A credit tenant assets with fixed-rate, long term debt and an investment grade tenant, in place, is more like buying a bond equivalent than a more speculative real estate investment. Many of our clients report that they have never slept better in their lives.
Over sixty (60%) percent of all 1031 Exchanges that are completed come out of our client base in Southern California. We have a very demanding client base. We are required to have a national scope for our products and services. We specialize in these credit tenant NNN properties which provide a predictable, stable and secure income stream in which the tenant has the sole responsibility for operating and management expenses that often erode the net income streams of income-producing properties.
This net lease niche of the real estate investment industry presents a risk-averse alternative for investors, many of whom are transitioning from management-intensive investments, like apartment buildings to a relative 'coupon clipping' option with predictable income streams and no management operations like their other real estate assets.
IRC 1031 provisions allow a taxpayer/investor to defer their gain and preserve their wealth. In choosing a net leased asset as a sound and conservative investment, a taxpayer/investor has a predictable income stream from tenants are effectively financed on their creditworthiness; as well as, the real estate intrinsic of more speculative investments. This is an important consideration in our changing real estate landscape.
The O’Shea Net Lease Advisory, essentially views its role as playing an ancillary role to the accounting community of professional who provide services to your own client bases whether a IRC Section 1031 Exchange process, reviewing their tax profile to determine disposition strategies or whether to acquire additional basis with a highly leveraged credit tenant net leased property for a better tax profile or even some estate planning. Accounting professionals also play a central role in the cost segregation process, referenced above. Acquisition candidates must be reviewed in the context of all of the implications of ownership from a tax-motivated perspective as one of the many data points when considering an acquisition on behalf of a client. They are the most likely people to recommend use of the technique to their clients or employers. An accountant also will review and implement the findings in the required engineering report.
The benefits of cost segregation overwhelmingly outweigh the drawbacks. When it comes to real estate acquisitions, the jewel of cost segregation is that it yields enhanced depreciation deductions. As evidenced by the above example, there can be astounding differences in outcomes between using and not using it. The major advantage of cost segregation is not necessarily that it will produce more depreciation deductions (except, of course, to the extent depreciable basis has been allocated away from the land element of the purchase). Instead, due to the time value of money, the advantage of these front-loaded deductions will be quantifiably greater than had the deductions been spread over longer periods of time using slower depreciation methods.
Family Office advisors determine how their clients can meet lifelong financial goals through management of resources. They examine the financial history-past and current-of their client's assets and suggest exactly what steps the client needs to take in the future to meet her goals. Although other professional financial advisors usually focus on one area of a client's financial life, the broad-based approach to financial advice that financial planners offer distinguishes them from the rest of the profession. In this sense, financial planners are jacks of all trades, but they do not work alone. Financial planners will inevitably meet with their client's other advisors-attorneys, accountants, trust officers, investment bankers - in order to fully understand their client's financial goals.
At the O’Shea Net Lease Advisory, much like the relationships that we have cultivated with the accounting and legal communities, we, as we define our role, "are not here just to sell your real estate". We readily admit that we are, in fact, licensed real estate practitioners in a number of states; but, the O’Shea Net Lease Advisory recognizes that NNN properties, particularly the Credit Tenant Assets, as "fungible commodities" which can serve as risk-averse investment vehicles to accomplish the goals that you set out for your clients. Whether retirement planning, education trusts, estate planning, we can provide the investment product to accomplish your client-specific solution as you deem it.