Triple Net Leases (NNN)
Real estate investors usually consider triple net properties as a high-quality investment because they are one of the most secure due to the fact that they sell quickly based on tenants who and are highly qualified and credit-worthy.
When investing in a Triple Net Lease (NNN), the tenant pays all the ongoing operating expenses, property taxes, utilities, insurance premiums, maintenance, and repairs! Meanwhile, you (the landlord) collect monthly net rental income (after your mortgage payment) the same as with a traditional real estate investment. These leases are normally extended over the long term because financially strong corporate entities (i.e. Wal-Mart, Office Depot, CVS drug stores, Jiffy Lubes, Jack-in-the Box, etc.) guarantee a long term period of 10 to 25 years.
A Triple Net Lease is ideal for an investor wanting to avoid management intensive rental property. Instead of selling and then reinvesting…1031 exchange into your new investment and bypass the capital gains tax, which gives you the ability to roll over all of your gain thereby improving your return in a higher grade, stable, triple net investment.