What Do You Know About NNN?
Technically, the three Ns of the acronym represents net of maintenance, net of taxes, and net of insurance. This NNN investing method is basically all about having a retail building that will be rented by a tenant who is liable for paying all the taxes, rent, premiums, utilities, repair, and insurance of such structure. Moreover, the tenant will be held liable for all of those listed for at least about ten to twenty-five years, and is not held liable or will not be held liable for short-term leases only.
NNN Investments as compared to that of a Multifamily Property
A huge number of Triple Net Gateway investors have had the experience of owning back then other different kinds of real estate but are most probably seeking out for an investment that will mandate them of less maintenance and supervision for their part. A number of these multifamily investors will want to opt to sell their properties that require too much maintenance on their part and try to invest them in NNN properties, which will then make them have an easier time gaining more profit whilst not really doing that much to maintain said properties.
What are the probable advantages that one can enjoy when investing in NNN properties?
These properties are actually seen as great investments because of how they are easily stabilized, predicted, and have usually made a higher profit. Another reason why it is even more convenient is the fact that tenants can never commit to a short term basis only, thus making it easier for those owners to have to never worry about looking for new tenants. An investor will also be given the privilege to have a background check on their possible tenant's profile in order to make certain that they can be held liable for the maintenance of the property. Know more about investments at http://www.ehow.com/how_4854285_become-an-investor.html.
What could be the possible risks when trying to invest in an NNN property?
The very basic risk that anyone might be afraid of in terms of investing in this kind of property is the probability of having tenants who might not have the means to actually pay up for everything that needs to be paid for. Despite the fact that this kind of investment offers a high risk but with a high reward probability, a number of investors still would then choose more the corporate backed leases when they are looking for safer and more stable investments. Technically, these corporate backed leases give security to triple n investors and still have their tenants held liable for all the expenses during the time duration of their lease period, because of an idea about a tenant who might suddenly decide on getting out of the property and not coming back before their term has even expired, making it hard on the part of the investor.