6 Major Criteria For Triple Net Lease Investment Lease

6 Major Criteria For Triple Net Lease Investment Lease MEDICAL OFFICE What Is A Triple Net ( NNN ) Lease ? A triple net ( NNN ) lease is defined as a lease structure where the tenant is liable for paying all operating expenses related to a property . The triple net or NNN lease considers a " turnkey " investment since the owner isn't accountable for paying any operating expenses . PROPERTY Major Criteria For Triple Net Lease Investment Lease Future Rental Potential Analysis Rent analysis is the very first one needs to do before stepping into a Triple Net Lease Investment . The present tenant and therefore the chosen location might sound perfect to you . Still , you should do an in - depth rent analysis of rent . C Triple net lease vs Gross lease ● Triple net lease pros and cons Credit - Worthiness Of The Tenant Vs. Location Always look over the credit history of the tenant when analyzing Triple Net Lease investments . A tenant who features a good investment grade credit is often advantageous , but not always . • Potential traffic , • Demographics , Market Understanding The main success factor is a thorough understanding of the market area . That's why investors often target markets in which they're conversant instead of markets they don't know well . Estimated increase ● Similar factors that will increase business growth . Understanding Lease Structure NNN investments are considered a passive income opportunity . Hence the property lease must be an Absolute Triple Net Lease . The lease must clarify that the landlord / owner is free from any tax , utility , common area maintenance costs , and building maintenance . wee Call For Information ( 949 ) 669-4230 Lease Term When considering NNN investments , it'd be better to travel for long - term leases , with approximately ten years or more . But if the lease's remaining term is brief and you would like a long - term investment , you would possibly invite a reduced property price from the vendor so that you'll balance the releasing costs . 1031 Exchange Funds Investors can use the lease amount from a relinquished property to shop for another Triple Net Lease property . It is often the wisest way of doing billboard I and investing . [email protected]