4 Reasons Why You Should Invest In A NNN Property Today

4 Reasons Why You Should Invest In A NNN Property Today

By | July 13th, 2022|Blog|0 Comments

So, you have made up your mind to tackle all landlord responsibilities by investing in NNN properties. Honestly speaking, a triple net lease agreement is an increasingly popular agreement where the tenant is usually responsible for everything, including the rent, property insurance and other utilities.

Moreover, although an NNN lease puts a lot of financial strain on the tenants, it is perhaps a preferable investment medium to earn a regular income, especially for the new investors.

Here are the four reasons why investing in triple net deals is a great idea.

This Type Of Investment Comes With Minimal Management.

One thing that makes NNN properties a great investment option is that it helps you tackle all landlord responsibilities. A NNN lease puts all financial burden on the hands of tenants. From maintaining the property to paying property taxes, property insurance and other utilities, tenants pretty much handle everything when it comes to the expenses of the property.

Though it’s true that these added financial responsibilities might put your tenant in control, NNN properties can be a good option if you are looking for a passive source of income without the thought of getting involved in the actual maintenance process.

NNN Investments Is Favored By Reliable Tenants.

There’s no denying that you must go through the credit worthiness of the tenant before finalizing the lease. However, it’s a fact that NNN leases do attract possible, reliable tenants.

In fact, because the lease agreement states every financial responsibility of the tenant clearly, it is quite obvious that the interested tenant would have the backup to cover all the expenses. Moreover, tenants favoring NNN properties include retailers like gas stations, mattress outlets, supermarts or fast-food chains.

Besides this, with all the financial burden included, the tenants might ask for a lower rent. However, this can be beneficial for investors, given they wouldn’t have to manage the property and would be able to maintain a steady source of monthly income.

NNN Investments Are Stable Investments.

Most NNN lease agreements are long-lasting and reliable. In short, there are greater chances that you wouldn’t have to look for another tenant more frequently. Therefore, the source of income would be continuous, stable and reliable.

In addition to this, because most tenants would value being in one location after being a hit business, there are chances that they might be willing to increase the lease agreement, resulting in better landlord-tenant relationships.

It Helps You Diversify Your Investment Portfolio.

Want to avoid market fluctuations? Investing in triple net deals can be a great way to diversify your investment portfolio. Moreover, because there is no financial burden involved, it can make the management quite easier and promise assured passive income on a monthly basis.

So, besides building an impressive investment portfolio and earning regular passive income, you can find a balance in your business dynamics ad cut through the market fluctuations with ease.

Wrapping Up

Adding to the benefits stated above, NNN properties also qualify as ideal replacement properties when conducting a 1031 exchange. This means you can reinvest the entire proceeds in a NNN property to defer the capital gains taxes.

“Our tax-deferred 1031 exchange programs can save millions in taxes, increase investor equity, and compound annual cash flow distributions and returns”