Triple Net Properties

The Benefits

The reasons for which the investors are forced to consider investing in triple net properties is the potential benefits these properties can offer. Given below are the advantages of investing in triple net property.

1. Income

Under the triple net, it is the tenant who is responsible for paying all the necessary expenses. The investor’s cash isn’t depleted in the operational costs, and he enjoys a stable income stream.

2. Predictability

While signing the triple net lease agreement between two parties, the cost to be paid by the investor and the investor is fixed. Which means when the investor invest in these properties, he knows how exactly his cash flow is going to be until the end of the term.

3. Location

The area where the investor’s property is located has a direct impact on its performance. So, if the investor’s investment property exists in an area that is known for its predictable growth rate, then the investor’s property worth increases automatically.

4. Low Pricing

As the triple net properties are mostly single-tenant places; therefore, the entry costs for investing is very low. The starting cost of triple net properties is as low as $500,000, and investors will get their returns immediately.

Let’s have an example

This is a success story of my parents for 1031 Exchange

My parents had a house in Pittsburg. It was a rental property, and they were determined about selling it. But they knew, if they did sell it, they would have to pay a huge capital gain taxes. So, they decided to opt for 1031 Exchange. Therefore, they came to know about the rules. Their total calculated earning was approx $3.5 million. However, they couldn’t buy “like-kind property” in the Bay area and actually make a profit. That’s when they met with the experts of triple net property, and what the experts  told them sounded too good to be true. It did.

They were very skeptical when they met the experts for the first time. So, they delayed a bit but eventually trusted them. The experts main objective was to let them know how to be a great investor, and it works. I mean, they’ve learned so much more about rental properties in the last year or so than they ever knew.

It was amazing how farther their money went from the Bay Area. They knew the old thumb rule, “You have to be around your rentals.” But with technology, the internet, and a trustworthy team like that of, this isn’t true anymore. At least it wasn’t true for them.

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