It would not be wrong to assume that NNN properties are currently one of the most attractive commercial real estate investments for providing a steady stream of income. Commonly, triple net leases are found in retail and commercial properties such as offices, restaurants, malls, etc.
Furthermore, triple-net properties are famous for generating low-risk revenue streams and providing lucrative income opportunities. Most investors want to know if it is a wise financial decision to invest in Net, Net, Net (NNN) properties.
Expert Tips for NNN Investments
In such lease agreements, the tenant not only pays a fixed monthly rental amount but also additional property expenses like insurance, property maintenance costs, and taxes.
Not all NNN properties offer the same benefits and consistent stream of income, therefore, when buying, choose the best location and option to get the desired returns. As you start hunting triple net properties, here are some expert tips to help you with the process.
Physical and geographical location is the most important factor when it comes to NNN investments. Earning potential of the business will increase manifold if the NNN property is located in an area with good traffic and accessibility.
Businesses thrive better and get more customers in highly populated areas having a healthy economy and positive employment rate. In such areas, there will be more customers visiting restaurants, grocery stores, and pharmacies frequently.
Get Advice From Triple Net Lease Advisor
For new investors, it can be quite complex to find the ideal location fit for their business. Fortunately, there are many reputable triple-net lease advisors in the market with years of experience in the NNN investment world.
These commercial real estate brokers will help you find an ideal location and draft a lease agreement with the landlord. With experienced and credible NNN advisors on your side, you will find an ideal NNN investment with a higher earning potential.
Compare and Make an Offer
Make a list of potential investment opportunities and gather information on the various sites you have shortlisted. Make a Google Drive or Dropbox folder to store all the valuable information about the ideal NNN properties.
Since it is not possible to tour each site in person, hence, the stored data will help you review them quickly, weigh the pros and cons of each investment, and invest in whatever works for you.
Do not Sign the Lease Agreement Quickly
Once you have found an excellent investment option, go through the tenancy agreement to see what businesses had been operated here and how profitable such businesses were. Before exchanging contracts, negotiate the terms and conditions, monthly rent, and property expenses with the landlord.
If you can not draft a NNN lease agreement, seek assistance from a professional to help you with the contract.
High net-worth investors can invest in these relatively low-risk properties to build equity and earn steady income over time. Once you have decided on the business you want to establish, it is easy to find an NNN property that fits your requirements and finances.