Triple Net Investing 2017: Benefits of Triple Net “NNN” Deals
In commercial real estate, triple net or “NNN” deals is one of the most popular property types, which are typically single-tenant retail properties that are leased to tenants with high credit ratings. The tenant is responsible for insurance, real estate taxes, maintenance and all cost relating to the property being leased in a triple net lease agreement. The term “NNN lease” refers to the lessee having to pay three types of costs which are net real estate taxes, net common area maintenance and net building insurance. For investors who are seeking steady income, triple net is really ideal for them because it only has minimal risks. Triple net lease investments are usually offered as a property portfolio that are consists of three or more high-grade commercial establishments which are fully rented by a single tenant with current in-place cash flow. It includes shopping malls , office buildings, free-standing buildings operated by restaurant chains or banks and industrial parks.
The benefits for real estate investors include long-term and stable income with possible capital appreciation of the underlying property. High-quality real estate investment can benefit investors as the don’t need to worry about management operations, tenant improvement costs, leasing fees and vacancy factors. Through a 1031 tax-deferred exchange, once underlying properties are sold, real estate investors can roll their business capital into another triple net lease investment without having to pay taxes. Triple net investment offers great benefits including passive source of investment, enable to leverage competencies, make money while handling other businesses, long-term lease financial security, and have time to spend and enjoy with families and friends.
Engaging in passive investments involve a discipline of acquiring assets that typically offers long-term appreciation and requires a limited maintenance. Passive investing is also called as “couch potato investing”, especially for people who want to gain financial benefits without having to attain a higher degree of knowledge and skills of being a responsible owner to handle operations. In real estate, the excellent option for real estate investors who want passive investing is acquiring triple net investment properties. In triple net properties, the day-to-day operations are handled by business owners occupying the property, so the investor becomes the landlord without having to deal with the problems of traditionally managing an owned property.
In a triple net investment, a broker can help you acquire the right property, and you don’t have to know much about business or real estate investment to have high return of investment. It is great that you now know the benefits of triple net investing, so if you are looking for the best triple net investment for you, you can count on us to you with all the things you need to know, including the best broker for you. For more information feel free to visit our website or homepage.