In this episode of Commercial Real Estate Now, Karly Iacono breaks down zero cashflow investments; what they are, how the debt is structured, and why sophisticated investors specifically seek them out.
Topics covered:
-How self-amortizing, non-recourse, assumable loans make these deals work
-The pay down readvance feature and why it matters in a 1031 exchange
-Depreciation and interest expense as ongoing tax deductions
-Phantom income risk under Section 467 and how to plan for it
-Who should (and shouldn't) own one of these
Zero cashflow deals aren't underperforming assets. They perform differently and for the right investor, they're one of the most efficient structures in the net lease market.
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#commercialrealestate #netlease #ZeroCashflow #1031Exchange #CREInvesting #TaxStrategy
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