Look no further than NNN Properties! With long-term leases and minimal landlord responsibilities, these properties offer a stable cash flow and the potential for substantial returns.
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Investors seeking steady income with low risk are increasingly investing in triple-net leased properties. Triple net lease investments typically consist of several high-grade commercial properties fully leased and have existing cash flow. A commercial property may include an office building, a shopping mall, an industrial park, or a free-standing building operated by a bank, pharmacy, or restaurant chain. There is typically a contract for escalating rent at the end of a lease term of 10 to 15 years.
For investors, the benefits include long-term, stable income and capital appreciation of the underlying property. Investors can invest in high-quality real estate without worrying about vacancies, improvement costs, or leasing fees. Through a 1031 tax-deferred exchange, investors can roll their capital into another triple-net-lease investment without paying taxes.
To invest in triple net leases, investors must have at least $1 million in net worth (excludes primary residence) or $200,000 in income ($300,000 for joint filers). There are real estate investment trusts (REITs) where investors can use their own triple net lease properties with smaller portfolios to participate in triple net lease real estate.
Triple net leases can be a good option since they offer both landlords and tenants several benefits. Landlords can handle various property expenses, enjoy a stable source of income, and focus on their own business, whereas tenants can benefit from lower monthly rents. However, landlords and tenants should consider other leases, such as single and double net leases.