Triple Net Properties - Posted by Brian

Posted by George on August 12, 2006 at 20:57:44:

On the contrary triple net investing is a great strategy for the less experienced RE investor. Beyond getting some help finding an acceptable, safe, decent property, and desirable financing, once the property is purchased, there is no maintenance, no taxes, no insurance, no hassles. The tenant is responsible for everything. A lot of triple net leases run 15 years plus. All an investor does is collect checks and pay their own personal taxes. It’s the easiest RE investment around. The trick is finding the right property. A good, reliable broker can help solve that problem. Of course you do need some capital to even begin to think about this kind of investment, because they start at close to a million plus.

Triple Net Properties - Posted by Brian

Posted by Brian on August 10, 2006 at 10:15:50:

How are Triple Net Lease Properties? Do they have a positive cash flow of return? Do they have a high cap rate? Does anyone own any Triple Net Lease Properties? Any thoughts?

Brian

Re: Triple Net Properties - Posted by ray@lcorn

Posted by ray@lcorn on August 10, 2006 at 11:12:29:

Brian,

I own a number of triple-nets and wrote an article to explain the basics. See http://www.real-estate-online.com/articles/art-286.html

ray

Re: Triple Net Properties - Posted by john

Posted by john on August 16, 2006 at 08:54:24:

I’m currently researching triple net properties and through my research I’m finding that the most improtant thing in evaluating a commercial triplenet property is the value of the land in the surrounding area. You might be able to own a Burger King in a small town for an 8% cap rate, but If there is no other commerical around it may not be a good long term investment. The question you need to ask yourself is at the end of the lease would another commercial tenant like to park their business here. A lot can change in 15-20 years, but I would look at an area where the trend is leaning toward if not already an established commercial development. There is a reason why some areas have a Mcdonalds accross the street, and a Wendy’s next store, and a gas station etc. Good luck in your search.

Re: Triple Net Properties - Posted by Bill Taylor

Posted by Bill Taylor on August 10, 2006 at 15:30:45:

I bought my first on last Sept. and so far so good. We have a pd. manager and he has been able to collect all of the rent since I bought it and every one of the tenants is locally based. We do hae a Quiznos but that is owned by a franchisee. I am not going to say he has always had it perfectly easy but I can say he has taken care of it and I have not had to. I bought another one and it is a work in progress. If things go well we will make heaps of money but reight now progress is slow. We just signed a lease for 5500sf and will start to recive that rent somewhere early next yr.

Re: Triple Net Properties - Posted by james (CA)

Posted by james (CA) on August 12, 2006 at 20:43:05:

What strategies (income, due deligence, exit) did you use for the deal? Did you invest in residential and apartments prior? I think one would need substantial cash and business experience to invest in NNN. Thx