What is a TRIPLE NET INVESTMENT(NNN)? NNN= Tenant is responsible for all maintenance of the property, all taxes and assessments, and all insurance Achieve higher returns, leverage your money, diversify your portfolio and have total control. These benefits may not be available from many other investments. A regular stream of income payments with scheduled increases (rent bumps) over the life of the lease. Arm Chair Investment requiring no daily management on the part of the landlord. Landlord / Investor receives all of the benefit of appreciation over the life of the property. Depreciation deduction from taxable income, see your Accountant. Tenant Benefits:
A net leased investment property is one that is owned by an investor, then leased by a user (tenant) for an extended period of time. Preferred national credited Tenants.
NN= Landlord retains responsibility for the roof, bearing walls, and foundation.
Investor / Landlord Benefits:
The landlord enjoys many benefits from owning a NNN leased investment property:
Reduces up-front capital requirements for business expansion plans. Tenants are usually not in the business of owning real estate. The tenant's balance sheet would show lower liabilities.
Lower liabilities positively affect the credit rating of the tenant.
1031 EXCHANGE INVESTMENTS
Triple net (NNN) leased properties are replacement investments to defer Capital Gains Taxes through the use of an exchange,the typical rules for an exchange apply.