Why You Should Consider Triple Net Investment Properties For Your Portfolio

According to a recent article in Forbes, NNN investment properties have long been desirable options for real estate investment trusts (REITS), insurance companies and high-net-worth individuals because they yield long-term steady returns. Unlike multi-family investments, NNN investment properties have no landlord responsibilities making them even more attractive.

"Imagine what it would look like to have a multi-billion-dollar company send you a check every month for the next 25 years. Is the idea of having companies like Walgreens, McDonald's, or Bank of America sending you a monthly rent checks enticing? It should be- the peace of mind this could give you is likely far superior to that offered by a local or regional commercial business tenant. With a publicly traded tenant, you could look at its stock ticker to track what condition it's in."

-Forbes

1031 Tax Deferred Exchange

After the sale of a labor-intensive investment property like a multi-family investment, smart investors are now looking to use the capital gains from that sale to their advantage by purchasing a NNN investment property through a 1031 Exchange. In a triple-net-lease, commonly referred to as NNN lease, the tenant is fully responsible for operating expenses, maintenance repairs for the entire land and building without limitation. The buyer then receives lease payments from the seller over the long-term lease, and these tenants pay their rent like clockwork every month. The steady cashflow permits you as the property owner to build equity over the term of the lease.

Tax Advantages

There are some tax advantage as well. The buyer of a NNN investment property is able to use depreciation as a tax deduction to offset the income.

Finding The Right Broker

The article advises that if you are interested in purchasing a triple-net-lease investment, to contact a brokerage that specializes in these NNN investment properties.