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We have been buyer brokers since 1993…utilize our experience to help ensure you purchase the right NNN property.

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NNN Triple Net Investment Property

WHY BUY NNN PROPERTIES?

NNN properties are one of the few investments that yield stable and guaranteed income with a relatively high rate of return. The passive income, preservation of equity and appreciation of value are the primary reasons why investors and 1031 exchange buyers purchase NNN property. Security is achieved when your tenant has strong credit and a great location. Passive income is achieved when your tenant has a long-term lease (10-25 years) and maintains 100% of everything.

Who buys NNN Properties?

You can buy NNN properties as an investor or through a 1031 exchange. Most triple net properties are owned by individuals. However, real estate investment trusts (REIT), pension funds and other institutions also buy NNN properties. Most NNN income properties for sale are priced between $1,000,000 and $30,000,000. Please note 1031 exchange would only apply if you are using proceeds from a sale to acquire property.

What is a NNN Property?

1031 NNN triple net property is a type of income property where the tenant maintains 100% of everything. Everything includes the roof, structure, plumbing, paint, parking lot, HVAC, etc. In addition, the tenant pays for all property taxes, insurance and common area maintenance (CAM).

Where are NNN properties located?

Triple net properties are located on the corner of “main and main” and on heavily traveled thoroughfares in almost every city throughout the United States. Examples of triple net income properties for sale include pharmacies (Walgreens and CVS), banks (Chase Bank and Wells Fargo), restaurants (McDonald’s and Panera), auto parts (AutoZone and O’Reilly), dollar stores (Dollar General and Dollar Tree), big box (Wal-Mart and Target) and many others.

When to review NNN properties?

Now is the time to learn more about NNN triple net properties if security and passive income are your investment property goals. Contact us to receive a list of available NNN triple net properties.

Steps in Purchasing NNN Property

(Time is money. Make sure neither is wasted.)

Identify the Right Property

  • Review many properties.
  • Analyze the demographics (surrounding retail, traffic counts, ingress / egress).
  • Analyze the tenant (credit worthiness, track-record, franchise vs corporate, store sales).
  • Analyze the lease (landlord obligations, rent increases, option periods, termination provisions).
  • Compare and contrast each property.
  • Narrow down to the one right property.

Secure the Right Property

  • Submit a Letter of Intent to purchase the property.
  • Convince the seller you are the right buyer (having closed properties with the seller makes a tremendous difference).
  • Finalize the letter of intent.
  • Prepare for the purchase contract.

Finalize the Purchase Contract

  • Seller’s attorney will prepare a purchase contract shortly after the Letter of Intent is agreed to.
  • Your attorney must be ready to review / negotiate the purchase contract. Your broker must prepare your attorney based on knowledge gained from finalizing the Letter of Intent.
  • Determine what due diligence items the seller has and will provide during due diligence. Line up survey, engineer and environmental providers before the purchase contract is signed (if sufficient reports are not provided by seller). 
  • Sign the purchase contract.

Due Diligence

  • Your due diligence period begins the day your purchase contract is signed. Make sure that you, your broker and your attorney are 100% engaged and ready to confirm you are purchasing the right property. Careful analysis in the prior steps will make this step much easier. Tenant financials, title, survey, engineer report, environmental report, certificate of occupancy, tax certificate, property insurance, estoppel certificate, construction warranties, warranty deed and loan documents (if applicable) must be reviewed and approved before your due diligence period concludes.

Closing

  • Closing is the culmination of proper planning and thorough analysis. You have reviewed many properties and identified the one right property. Now comes the fun part.
  • Now that your due diligence is complete, you want to close the property as quickly as possible.
  • Your attorney will prepare and review the closing documents. 
  • You make money (rent) the day you close!

“One of the things I appreciate the most about owning NNN properties is that it keeps my income stream consistent. For years I owned small apartment buildings and I made good money doing it, but I was constantly at the mercy of changing market conditions. If the insurance industry got nervous about something, my rates would fluctuate dramatically almost overnight. If the local taxing authority assessed my property for too much, I was forced to spend time and money contesting their value and usually did not win. But, with my NNN properties, I no longer have to worry about those issues.”

Vance H

Triple Net Property Investments

Guaranteed Income

You can sell your current property and receive passive income for 10-25 years when you own a triple net leased income property.

Eliminate Property Management – Some investors accumulate several single family rentals, strip centers, shopping centers and/or apartments’ buildings. The ongoing maintenance and management of these property types is overwhelming for many investors and will be lessened by exchanging into single tenant NNN income producing properties.

Estate Planning – Sometimes a number of family members inherit one large property and have different financial goals. Some family members want to continue holding the investment, others want to sell it immediately for cash. By exchanging from one large property into smaller properties, an investor can designate which specific property each heir will receive. Learn More about getting your finances in order for retirement and consult with your financial advisors.

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