The Zero Cash Flow sector is a very active niche market. The investor composition is typically focus on tax and financial planning solutions including highly leveraged 1031 exchange transactions.

Check in to better understand the elements of a Zero Cash Flow Deal:

  • Real estate investment subject to high leverage (approx. 90%), non-recourse, long-term loan based primarily on the creditworthiness of the tenant
  • Absolute NNN leased, single tenant property, no landlord responsibilities
  • High credit, investment grade rated tenant of a retail, commercial, medical or industrial property
  • Long term lease (20+ years)
  • Rent structured to equal debt service (DSCR = 1.0). Loans are self-liquidating.
  • Required equity is priced as a percentage of the debt