There’s a truckload of options for individuals looking towards making decent passive income in the US today. However, most of these alternatives are overly risky as they tend to depreciate over time. Consequently, people are now turning towards real estate, with this market having a reputation for its ever-growing nature.
That said, this real estate fact doesn’t negate the prospects of risks. Nevertheless, the threats here are low compared to other economic sectors and can be mitigated regardless of your experience in this industry.
Talking about real estate, it’ll interest you to know that there are so many subsections inherent. Albeit new and relatively unknown, one segment of real estate that’s rewarding, in the long run, is NNN properties.
Are you seeking ways to get a hold of this investment form by seeking out several single Tenant NNN properties for sale? Well, that’s a step in the right direction. Nonetheless, you’ll need a foundation to get started.
This article aims to provide you some degree of perspective. In the subsequent paragraphs, we’ll be looking at NNN investments and why staking a claim unto single-tenant NNN properties for sale might come in handy to get that ROI you crave.
NNN Properties: What Are They?
Although you might be wondering what a single tenant net lease entails, it’s pertinent to understand that it means the same thing as the regular NNN properties. Therefore, using these terms interchangeably is feasible.
Here, rather than the landlord taking responsibility for maintenance and other things attached to the property, the lessee or tenant is responsible for footing all the expenses generated by the said property.
How about the landlord? You might ask. Well, these individuals are only available when it’s time to collect rent or perform any property-related transaction.
With this definition, it’s normal for you to have doubts concerning single-tenant NNN properties for sale if you’re a lessee.
Although being a tenant might have its perks, becoming a landlord is more smooth sailing. However, while the results might not showcase themselves quickly, you’re on the way to building a real estate portfolio that resonates.
Single Tenant NNN Properties: Why You Should Invest in One
Have you been thinking of making findings on those NNN properties for sale in California, and you’re wondering if you’re making the right choice? Just like any investment firm, it’s okay to get all fidgety at first. You’re not alone.
By acquiring a single tenant NNN property as an investor, you’re in for so many benefits. Although we’ve given insights into some in the lines above, let’s look at the sole advantages of these property forms. They include:
- Features Huge Returns on Investments and Low Risks
Suppose you’re a commercial investor and you’ve been on the lookout for a property that doesn’t require astronomic capital while being rewarding and low risk all at once. In that case, single-tenant net lease properties fit the billing.
Why? Since lease agreements on these properties are usually between 10 to 25 years, you’re sure of having a great source of passive income when you strike a deal with a tenant.
In terms of risks, the stakes are low with single-tenant net leases. Unlike multiple tenant lease agreements that involve you (the landlord) signing separate lease agreements, purchasing a single tenant NNN nullifies this seeming strenuous activity. Hence, you get to keep everything in context and reduce risks.
- Rent to Conveniently Fend Off Mortgage and Other Fees
One thing about NNN properties is that you don’t need to have the cash at hand to purchase. Instead, you can get a hold of other financing options to help you get a NNN property on sale without much hassle.
Seeking these alternatives is crucial as you can broaden your horizon. That said, when you get the financing you’re looking for, you can now clear the financials involved in the NNN property acquisition.
Since you’ll be paying back the loan or mortgage as time goes on, the rent you receive when you’ve signed a lease agreement is more than enough to settle those charges and any other expenses in-between.
- Positive and Reliable Cash Flow
One good thing about NNN investments is the ease and convenience it provides. When you’ve successfully acquired one and become a landlord, it’s now time to sit back and collect rent accordingly. Depending on the agreement you sign, you’re sure of receiving a cheque monthly, quarterly, or annually.
Apart from that, since you’re not responsible for maintenance and other expenditures, the likelihood of a surcharge due to sudden repairs is practically non-existent. As long as you have a tenant, all you need to do is collect rent. Easy peasy!
- Reduced Management
Unlike other real estate properties where landlords are charged with running daily to weekly checks, this scenario doesn’t apply to NNN properties.
Why? By renting out an NNN property, the lessee is usually an entity that seeks to create a brand or already has an established brand (for example, Walgreens). Consequently, these kinds of tenants are responsible for operation costs, service charges, and taxes.
Since they’re practically running your NNN for you, there’s no need to make time-specific inspections as you’re sure that everything is up to standard since the tenant does everything to maintain their reputation. So, if you’re thinking of relinquishing the duties of regular landlords, getting single-tenant NNN properties for sale is the way to go!
Final Thoughts
With all the illustrations above, you can see why NNN properties are becoming the go-to real estate form for new and existing investors. Here, convenience and low risk are the order of the day.
If you can see yourself as a landlord who does things with relative ease, actualize that vision by purchasing an NNN property.
For the best NNN properties to buy, you might want to take a look at the offerings of buynnnproperties. Besides getting the top offers on this platform, you’re confident of getting your money’s worth in the long run.
