10/08/2014
3 Reasons why you should invest in Triple Net Leases:
To better understand the reasons why you should invest in Triple Net Leases, it helps first to know what a Triple Net Lease is.
By definition, a Triple Net Lease (NNN) is one that binds the tenant with the responsibility of paying the three net charges: propriety taxes, insurance fees, and maintenance costs. Besides, the propriety investor also receives a monthly rent payment from the Tenant. There are many reasons to invest in Triple Net Leases but for the sake of brevity, we will limit ourself to three:
1-Hassle free:
Hitherto, it is evident that NNN leases are attractive as they are almost hassle-free. You would not have to worry about repairs to your estate; paying insurance is none of your matter and you can stress less about taxes for your propriety.
2-High Flexibility:
A little analogy results in the realization that NNN lease structure is bond-like. Indeed, these leases can be considered bonds. In fact, just like bonds, NNN leases offer you the option to sell the property down the road.
3-Relatively Secure Investment:
Similar to bonds, NNN leases are risk-aligned investment vehicles. They offer a higher margin of safety because the future expenses are not dependent on the investor. Also, there are many things you can do, as investor to make sure that your risk is as minimized as possible. For example, you should make sure that the estate is purchased properly, with a long-term corporate lease that includes options that guarantee constant income during the term of investment. Also, make sure to consult with Commercial Real Estate consultants as they will guide you through it all to ensure that you are winning on your investment.
Go ahead and invest in Triple NNN Leases now. Contact TriState CRE to request more detailed explanations or to get started on your Triple Net Lease investment.
Moussa Sarr
CTO, Social Media Director TriState CRE