The coronavirus pandemic has put many aspects of business through a difficult time, and triple net leases are not an exception. However, as we have better learned how to manage the pandemic, NNN lease property agreements are doing better than many expected. In fact, the net lease retail sector is expected to be especially popular among private investors.
Of course, not everybody is familiar with a triple net lease loan and what it can do for them. So what exactly is an NNN lease loan and what are the benefits that they can provide? Read on to learn all about this powerful financial tool and the advantages that it can bring to you!
What Is a Triple Net Lease?
There are many kinds of leases, and the triple net lease is optimized to keep landlords from facing risk. Triple net leases put the burden of maintenance, repairs, and rent all on the shoulders of the tenant rather than the landlord.
In many ways, the triple net lease is the simplest lease for landlords. The more properties you own or manage, the more it might be to your benefit to use triple net leases. Even if you have only a few properties, triple net leases are a great way to make sure that you make the most of your properties without having to constantly manage maintenance and other problems.
There are versions of a triple net lease that allow you to ensure that they cannot be terminated before the indicated expiration date. On top of that, many triple net leases are set to last for 10 years or longer. That makes them an extremely stable tool.
Long-term leases like this have advantages over other kinds of simple leases. Even if a lease is simple, if you have to find somebody new to take it over every year or so, it can cause a fair amount of hassle.
With a triple net lease, you can set it up and then mostly forget about it for many years to come. It will turn your property into a profitable investment that requires an absolute minimum of management.
1. Enjoy Greater Real Estate Investment Accessibility
Triple net lease properties are often highly stable investments. The tenants are likely to be highly reliable. As a result, banks and other institutions may be more willing to provide loans to invest in triple net lease properties.
Depending on your situation, you might be looking for an investment that you can easily acquire a loan for. If that is the case, then a triple net lease loan property might be the right choice for you.
2. Use Triple Net Lease Property Investments to Reduce Maintenance Requirements
A triple net lease leaves the maintenance, taxes, insurance, and everything else in the hands of the tenant. It is hard to overestimate how much time this can save a property owner. It is one of the main reasons that people end up using triple net leases.
Most investors are a lot more interested in investing than in management. Many investors accept that they will end up managing properties, but this is not a necessity. Triple net leases allow you to invest in property without having to also become a property manager on this side.
3. Enjoy More Financing Possibilities With Triple Net Properties
Triple net leases applied to commercial enterprises often receive more financing options from providers.
The properties are often written against the credit of the tenant combined with the worth of the commercial property. That gives you a lot of credit to lean on to design your financing option.
4. Make the Most of Higher Property Values
When you are considering investing in triple net lease properties, you should check how close the lease is to its end. If a lease has many years to go, then investing in the property is a great way to get an almost guaranteed source of passive income.
On the other hand, if the lease is about to end, then it will be up to you to find a new tenant before too long. This can be a good thing depending on the housing market.
If the value of the real estate market has increased in recent years, then there is a good chance that you can lease the property at a higher rate. That will also increase the property value.
5. Enjoy High Liquidity
If, down the road, you want to sell your property, do it with a triple net lease loan. Properties with triple net lease loans are often in high demand. That means that it may be easy for you to find a long list of interested buyers if you put up such a property for sale.
Enjoy All of the Benefits of a Triple Net Lease
We hope that you were able to take away something helpful from this brief article. Especially on some of the benefits that you can enjoy when you invest in triple net lease properties. NNN lease properties can seem hard to understand at first, but learning to appreciate the advantages of investing in NNN lease properties is an investment that will pay off time and time again in the future. It is more than worth taking the extra time and effort to make sure that you properly understand the unique qualities of properties with a NNN lease loan.
To learn more about triple net leases and other aspects of real estate and business loans, feel free to reach out and get in touch with us here at any time!
