NNN Investment provides –
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Triple-Net Lease Investment
A triple-net or NNN lease is a single-tenant arrangement that requires the tenant to pay all necessary property expenses instead of the investor or the property owner. Unlike a standard or gross lease, where the tenant is only responsible for paying the property rent, NNN lease requires them to cover property expenses along with the base rent. It’s a great investment option for investors who want to get rid of the burden of property management and save those extra dollars, which otherwise they would spend on the maintenance of their property.
Variation in NNN leases -
So, what kind of property expense is covered in a NNN lease? Well, it entirely depends upon the lease type.
- Absolute Triple-Net Lease – An absolute triple-net lease or a typical NNN lease requires the tenant to pay three major property expenses, insurance fee, property taxes, and maintenance cost. These three expenses, together, are known as the three-nets and the lease that requires the tenant to pay these three-nets, is known as a triple-net lease.
- Double-Net Lease – A lease agreement that requires a tenant to pay two property expenses along with the base rent is known as a double-net lease or NN lease. Though these two property expenses could be any, they mostly include property taxes and insurance fee, whereas, the investor is still responsible for paying the maintenance cost of the property.
- Single-Net Lease – As the name suggests, a single-net lease requires a tenant to pay just one property expense along with the base rent. It could either be property taxes or insurance fee, whereas, the investor is required to pay the remaining two expenses.
As you can see, an absolute NNN lease entirely frees an investor from property management, whereas, a double or single-net lease provides some relief. However, this isn’t the only reason why investors prefer NNN investment, there are a lot more things in the offering.
Benefits of NNN Investment -
- No Property Expense – As mentioned earlier, NNN investors don’t need to bear the burden of property management as the tenant is responsible for paying major property expenses along with the base rent. As a NNN investor, you’ll receive a free flow of income without any deduction.
- Tax Advantage – Only a few investors know that one can use NNN investment for completing their 1031 exchange. An investor can exchange any investment property for NNN properties and defer up to 100% capital gains tax using the tax-deferred exchange.
- Little-to-No Risk of Default – The majority of NNN tenants are big established multi-national companies, which means there is barely any risk of default in NNN investment and the vacancy rate isn’t high either.
Make your first NNN Investment with triplenetlease.com
If it’s your first NNN investment, it should be a perfect one and only a set of experienced hands can help you in handling the transaction properly. Our impaneled advisors, with their vast experience, can guide you throughout the transaction. In case you’re planning a 1031 exchange and looking to get hold of a NNN property as your 1031 exchange replacement property or directly want to acquire a NNN property, whatever it is, all your requirements will be fulfilled here. In addition, you can also reach out to us in case you’re struggling to find a lender for your investment.