A triple net lease, sometimes known as a NNN lease, is a kind of investment where the tenants agree to cover the lease agreement running costs, such as maintenance, building insurance, and real estate taxes. Although it is one of the best investments, there are some things that one should know before investing.
Determine your preferred investment return
Triple net lease investments can come with various returns based upon the tenant, location, term remaining on the lease, landlord responsibilities, year of construction, and so much more. Two investments will not be the same in the same context. So, try to determine your investment return plan so you can have an idea about the business. If you’re looking for a 5.5% cap rate, don’t settle for a 5% cap. There will be many types of options to choose from.
Find a Triple net lease advisor
Once you have a general idea about the investment, you need to talk to a professional NNN agent to get further about the business. A triple net lease advisor is a commercial real estate broker or brokerage that has experience in the world of NNNs investing. So, they are going to be the best person to provide investment ideas to the investors. Just talking to a professional will be able to provide you with enough knowledge to start investing.
Set You Tenant and the criteria
Not all tenants or triple net leases are created equally. Some NNNs offer attractive cap rates. Every tenant has different ratings. So, it is necessary to know the details about the renters. As they are going to be here for a long time, it is necessary to know their details.