Real estate investors buy NNN properties to generate stable, passive income(invest in NNN larger assets, 1031 exchange in nnn). Consider these top 10 reasons why Triple Net Lease properties are a great investment:
1. Higher Property Value
Property values can escalate by virtue of the improvements that tenants, not investors, may make to the land. Tenants come and go, however, their improvements typically are left behind, adding to property value. NNN property can also escalate in value if market conditions are favorable.
2. Easy investment financing
Bankers like to finance triple net lease properties for the same reasons as investors like them – stability of cash flow and the asset-type, which is real estate, is easy to collateralize.
As a result, financing is available for NNN lease properties. Even if an investor cannot finance an NNN property, a future buyer may be able to secure financing, making the property easy to relinquish.
3. Stable cash flow
Triple Net Lease properties are usually stable assets with strong leases. Often, such NNN properties are highly visible, located in busy areas with high vehicle and foot traffic. They are often near big box tenants like Aldi, Walmart, Lowes etc.
4. Absent Property Management
NNN leases are structured to make the tenant responsible for actively managing the investment property, not the investor. This means investors avoid vacancy expenses, and they can also escape the hassle of tenant search.
Also, tenants also pay all property operational expenses, including:
- Taxes and Insurance,
- Capital improvements,
- Maintenance, etc
5. Entry point for investing
A large percentage of NNN properties are available for less than $5 million. For investors who want to invest in NNN larger assets but do not have the money, investment structures like a Delaware Statutory Trust can be a possible option.
6. Quality Tenants
NNN Leases often involve good quality tenants. This offers more security to a lender and to the investor, in terms of income stability. Triple Net Lease properties, for example, can involve well-known national and regional companies like CVS, Chick Fil A, Starbucks, and Burger King.
7. Passive Income
To earn income actively, an investor must first do the work and then get paid. On the other hand, earning passive income, implies little or no work on part of the investor, plus an investor need not be physically present in the location of an NNN investment property, either!
8. Liquidity
Due to all the benefits listed above, Triple Net Lease properties appeal to a variety of real estate investors (from individual investors to institutions). This means that, if an investor must liquidate a property, there may be a large number of potential buyers.
9. Possible Sale-Leaseback
NNN property is the best vehicle for sale leaseback transactions where a property owner can sell an NNN property and lease it back from an investor, on NNN or other terms, as needed.
10. Lower Tenant Turnover
A lower tenant turnover rate helps minimize property management expenses. So, lenders may offer better financing terms, absent a focus on investor personal guarantees. That is due to the fact that lenders are more concerned about the financial stability and personal or corporate guarantees of tenants.Fee simple single tenant triple net lease for 1031 exchange in nnn.
Call or email your trusted advisors at Triple Net Investment Group to obtain the best NNN Triple Net properties for investment.
