Triple-net Lease (NNN) Investing Basics

Triple-net Lease (NNN) Investing Basics

The basic idea of the triple-net lease investment is simple: the property owner nets a monthly or quarterly rental income while the commercial tenant covers the costs of operations and upkeep. The NNN property lease means that tenants, as it is stated in the lease; assume the major operating expenses of a property, or the three nets: insurance, property taxes and maintenance.

How NNN Investing Works

The basic idea of the triple-net lease investment is simple. The property owner nets a monthly rental income while the commercial tenant covers the costs of operations and upkeep. The NNN property lease means that tenants, as it is stated in the lease; assume the major operating expenses of a property, or the three nets: insurance, property taxes and maintenance. Depending upon the lease, a NNN property owner may be responsible for exterior features such as the building’s roof or may have no responsibility over the building or land whatsoever.

A property with a reliable tenant and a solid lease determines its profit potential and yield. For the commercial tenant, NNN offers stability and control of the property. Grocery chains, fast food restaurants, hotels and chain drugstores are all examples of the typical NNN tenant but other tenants such as governmental entities and agencies can also serve as superior tenants in such properties. Net-net-net investing helps both commercial tenants and investors leverage their capital efficiently.

The SMARTCAP Group focuses on properties with quality NNN tenants.

SMARTCAP
info@thesmartcapgroup.com


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