Get the Best of Commercial Real Estate Using a Triple Net Lease Investment

If you are looking to get involved in commercial real estate but do not want to deal with the headaches or risk, then take into account a triple net lease investment.  Many investors shy away from the lucrative world of commercial actual estate simply because they associate it with tenant hassles, unforeseen expenses, and the fear of leverage working against them.

Many real estate investors have been bogged down with frequent landlord concerns such as maximizing occupancy, handling expenses, and dealing with the headaches of property ownership.  Triple net lease investments minimize the function and risk related with all of these concerns and simplify the task of becoming a landlord.

There are a variety of lease possibilities offered to use in the marketplace right now.  Just like financing, sometimes we investors have to get creative with leases to maximize our investment or even make a deal occur.  Besides the normal sort of lease you could be familiar with from leasing a car, home or apartment, there are a variety of leases that are widespread in commercial real estate and far more advantageous to the investor these are called net leases.   There are triple net (NNN), double net (NN) and single net (N) leases that pass some or all of the variable and fixed expenses of maintaining the property to the tenant, rather than the landlord. These leases put the burden of paying property expenses and rent on the tenant.

There are single net leases that insure that the tenant pays the actual estate taxes in addition to their rent.  Double net leases have the tenant pay the rent, taxes and insurance.  The finest lease for investors though is the triple net lease.  This magical gift from the lease fairy charges the tenant with paying rents, taxes, insurance and maintenance.  With this agreement in location the investor will need not worry about paying for all of the expenses generally associated with ownership.

Some tenants could not like the thought of triple net lease investment.  A lot of cite that with this kind of agreement in place their costs can be hard to calculate or predict.  For example, if they are responsible for repairs and maintenance then their costs may possibly balloon 1 month.  Unlike a standard leases where the tenant would constantly know their fixed rent costs, the triple net lease opens them up to variable expenses they might not be able to predict.

Yet on the other hand a triple net lease investment does not only benefit the investor.  Tenants in a triple net lease will appreciate lower fixed rents.  The situation works greatest in their favor in a new building.  Here they will enjoy the lower rent as well as diminished maintenance and repair fees due to the building’s age.

Of course, a triple net lease works best for us investors.  It frees you from numerous expenses that normally have to be shelled out of our income.  Along with the monetary burden investors are freed from the duties of worrying about covering these costs, paying the bills etc.  All you want to do is make certain the tenants are paying on time and you are golden!

Click here to find out how you can use a triple net lease investment to secure your retirement with a predictable, low risk passive income stream.