What are NNN properties? Is this a type of real estate investment you want to be part of? Your real estate agent can show you what makes these properties different than others, and you can decide if this is a commercial real estate investment that works out well for you.
What are NNN properties?
Basically, NNN properties are triple net lease properties. This means that they are properties where, when leased out, the person leasing the real estate pays not just their lease on the property, but the real estate taxes, insurance, and maintenance costs associated with the building. This is a common practice in commercial real estate and has many benefits for both the person who owns the real estate and the person who is leasing it.
Why buy NNN properties?
If you want to buy commercial real estate, then NNN investment properties can be ideal for you. The reason for this is simple: you have all your expenses related to the property paid for, plus the profit of whatever rent the lessee pays, and you get to continue to own the property while its value goes up.
What's in it for your tenant, and why would your tenant want to pay all your real estate fees? The reward for your tenant in getting involved in your NNN property is this: they get to have a guaranteed rental agreement for long-term use, which is usually a decade but can be much longer.
If you aren't wanting to sell your real estate investment anytime soon and you want long-term renters while building capital in your commercial real estate investment, then look at NNN properties.
What to consider before investing in NNN properties
There are several benefits in investing in this type of real estate, but there can be some considerations to take. First of which is this: how long do you intend on owning your building? Once you gain a tenant under your NNN investment, you cannot back out of it. If you plan on flipping the real estate soon, then this might not be the style of investment for you.
Also, if you plan on using some of the real estate for your own business use, look for NNN properties that have multiple offices or buildings in them. This way, you can have an easier time finding tenants who are willing to get involved in this type of investment, which in the end, should be mutually beneficial all around.
For more information, contact a local real estate office, like Income Realty Advisors Inc.
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