There are all sorts of real estate investments. One that is a carefully guarded favorite is known as the NNN Lease. Some people refer to it as a triple net lease or just a net lease. This type of property is one in which you own the property in question but grant a long-term lease to a business that has a large degree of autonomy over the property and responsibility for the property.
You might be wondering how a NNN lease property can benefit you. Well there are quite a few ways. Take a look at these to get an idea as to whether or not this is the type of real estate investment you'd be interested in owning.
Ownership of Net Leased Properties Delivers Security
For those thinking about the long haul, the long-term nature of a net lease property offers a great deal of stability and future. Even in this economy the businesses that decide to enter into a net lease are generally businesses that are secure and able to withstand a little bit of market instability and even shaky consumer confidence. What this means for you is that you have a long-term tenant and a dependable monthly income.
Net Leased Investments are Low Maintenance
If only all things in life could make that claim. This is one investment that you won't need to know a lot about commercial property ownership in order to get started with. The net lease option takes many of the more tedious tasks involved in commercial property ownership from you and places those tasks and responsibilities in the hands of the tenant. This means that you get to enjoy relatively worry free ownership without pesky things like cosmetic features, water heaters, insurance, and property taxes.
So what's the Downside of NNN Lease Ownership?
Depending on whom you are asking, you might hear that there are no downsides. Here are a few things that some people consider negatives about net leased properties.
• Hands off (some people are control freaks if left to their own devices). Other people prefer the freedom to island hopping to constantly looking over and managing a property.
• High buy in by comparison. The other downside is that you'll need a little more money up front to buy into this type of deal. It's an attractive package if you have the initial investment.
• Lower than normal monthly income. The final downside will ultimately depend on what your financial goals from the property are. If you're looking to bring in big bucks each month this isn't the choice for you. If you're working to build a long term real estate portfolio this is a great launching pad to bigger and better future deals.
In the end, only you can decide if an NNN Lease means something terrific for you or if you'd rather pass.
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