As with any business, understanding the clientele is instrumental to mastering the trade. When it comes to net lease investments, we can roughly separate investors into three primary segments of interest:
Segment A – 1031 & 1033 Exchanges
- Interested in cost segregation and business expansion
- Looking for real estate exposure and capital gains
- Concerned with hedging for inflation and wealth preservation.
You can view a chart illustrating this here.
This classification schema is helpful because it gets at the roots of an investors interest. There will be numerous situations when these interests overlap and understanding how they interact is vital.