Most older investors worn out from dealing with stress and worry related to tenants and the properties they occupy have all gone toward the triple net properties that don’t require any work or a call from their tenants. Of course, this has caused Triple Net properties to soar in value and costlier to purchase.
The terms Triple Net, Net Net Net, and NNN stand for no landlord responsibility for anything to do with the real estate taxes, insurance or any repair to the building during the term of the long-term lease.
Most tenants are good credit with leases that last between 10 and 20 years and have some increases in the rental income stream along with options to renew.
The 1031 exchange rule allows the present investor to trade from a troublesome property with many tenants and tons of responsibility, to a simple structure with one tenant and no responsibility. This appeals to mostly older investors that desire a simpler lifestyle that can be passed on to their heirs in an easy fashion.
There is little reason to have a manager or leasing agent, repairman or service provider for lawn or parking lot since the tenant is responsible for these duties. If not done by them, the landlord can intervene to get them done and charge the tenant for all the work.
Locating a NNN, triple net properties, or net net net properties in any city or state is quite easy, for Westwood Net Lease Advisors is a true professional in this arena along with 1031 exchanges that work hand in hand with these properties.
Real estate attorneys, CPAs, and intermediaries are still important in the 1031 exchange along with guidance when buying or selling commercial properties.
Retail, warehouse, medical, office all can be selected as triple net properties and a diversification of the groups is always a great option.
Loans are easily obtained for most are based on the tenant more so than you the purchaser.
