Expand your Investment, Invest in NNN properties
It’s great that you’re eyeing a NNN investment at this point in time in your investment career. Whether you’re looking for your 1031 exchange replacement property or just want to expand your investment by investing in different grade properties, NNN investment can fulfill all your requirements.
NNN Investment comes with no management responsibilities…
A triple net lease, also written as NNN lease, is usually a single-tenant arrangement that removes the burden of property management from an investor’s shoulders by asking the tenant to pay all required property expenses along with the base rent. What we see in a standard or gross lease doesn’t follow in the NNN lease. For example, in a standard or gross lease the tenant only pays the property rent, a part of which is then invested by the investor on property’s maintenance (if required) as well as for paying property expenses such insurance fee, property taxes, etc. On the other hand, a NNN lease requires the tenant to pay these property bills along with the base rent. In addition, a NNN lease requires a long-term commitment and may lock the tenant for a period of 10-15 years. As a result, NNN investors enjoy a regular flow of income for a long time.
NNN Tenants cover three major property expenses – insurance fee, property taxes, and maintenance cost
The reason why NNN lease is called so is that it includes all three big property expenses including property taxes, insurance fee, and maintenance cost. These expenses are together known as the three nets and hence the lease agreement is called a triple net lease. However, there are other types of Net leases as well that may not require the tenant to pay all these expenses.
Double Net Lease – A double net or NN lease is also a single-tenant arrangement, but doesn’t require the tenant to pay all three property expenses. Instead, NN tenants are only responsible for paying any two property expenses, which generally are property taxes and insurance fee. Whereas, the investor still looks after the maintenance of the property.
Single Net Lease – A single net lease, also written as a Net lease, requires the tenant to pay one property expense along with the base rent. The tenant could either pay the insurance fee or property taxes, whereas the investor takes care of the other two expenses.
Note: As NNN tenants are also responsible for paying property expenses, the rent under a NNN lease is slightly less than that under a standard or gross lease.
Finding an authentic NNN tenant list isn’t an arduous task…
What you need to have to make the most out of your NNN investment is an authentic NNN tenant list. There are a few real estate companies that provide NNN tenant lists to investors (you may have to pay for it). Another way is to surf the internet until you drop. Possibilities are very rare that you’ll find NNN tenant list this way. However, if you reach out to an experienced advisor or NNN expert, they can help you in getting your NNN tenant list (free of cost).
To speak to an advisor, you can call 888-993-2835 or email us at firstname.lastname@example.org