Investing in any market comes with several risks and benefits. Real estate marketing, mainly the trading of NNN properties, also poses numerous risks and benefits to both the buyer and seller.
However, when the right trade is made at the right time, and with the right triple net lease brokers, you put yourself in a position of immense profit making. This article will provide insight into the major benefits of investing in a triple-net lease. However, let us briefly grasp the understanding of a triple net lease.
What is Triple Net Lease: Definition
A triple net lease, also known as an NNN lease, is an agreement where buyers of lease properties pay some or all of the property’s ongoing expenses. These expenses are usually called the three nets: property taxes, property maintenance, and the building’s insurance.
The agreement involving the buyer, the NNN lease broker, and the seller, stays valid unless it is terminated by either of the parties involved for special reasons.
Why Should You Invest in NNN Lease?
Investing in triple net properties for sale means you have a relatively lower price to pay when compared to gross lease agreements. Below are some of the amazing benefits you stand to gain from a triple-net lease investment.
Division of Costs
In a successful lease property, where there is a relatively low vacancy rate, the prices of the property’s ongoing expenses are divided among the tenants. This means that you only get to pay a small amount when the costs are divided among yourself and other tenants in the leased property.
Lower Base Rent Price
This feature is one of the most important benefits of investing in triple-net lease properties. It means you can get top NNN for sale – Net Lease World at a reasonably lower rental price.
Triple net lease properties always come with a lower base rent than gross lease properties. Since you are to pay a ratio of the property’s taxes, insurance, and maintenance costs, landlords always place the price of the monthly base lease at a lower rate.
“The Better the Structure, the Lower the Cost”
Unlike gross lease properties, where better houses normally mean higher costs, NNN properties are quite the opposite. The maintenance cost of a well-managed triple-net lease property for sale is usually low.
Also, for newer properties with up-to-date facilities, the maintenance cost is low as most of the facilities are in great shape.
Investing in an NNN lease grants you an opportunity to leverage your particulars during further lease negotiations. You can get the price of your monthly base rent lowered if you have maintained a good financial relationship with the landlord.
Leverage your records of financial responsibility and creditworthiness to get a favorable bargain on the base rent’s price.
Financial Benefit for You
Many investors retain the idea that triple net leases are favorable to the landlord only, considering the costs that tenants have to pay. However, that conception is wrong.
NNN lease can be beneficial to you if you plan properly, leverage your advantages, and negotiate well. A good NNN lease broker and a real estate agent can be of great help to ensure your investment yields immense financial benefits for you.
In other to get the most out of the benefit of NNN lease properties, you need a good broker to bank on for all negotiations. So ensure you use the services of a good broker, and we recommend Net Lease World as one of the top brokers you can work with when you need dollar general NNN for sale.