Frequently Asked Questions
13) What is a Ground Lease?
An un-subordinated Ground Lease is the ownership of the land which someone leases for a period of time. All improvements are constructed and paid for by the tenant and the tenant retains ownership until the lease terminates. At the end of the lease by termination, default or expiration, the improvements are turned over to the landowner at no cost. Since the tenant has invested their funds in the improvements, there is additional incentive to pay rent on time. This is one of the more secure single tenant investments you can make. One drawback is there is no ability to depreciate the land. This is ideal for investors with little or no depreciable tax basis.
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