NNN Investments: Investment Property Without Risk

NNN InvestmentsPeople often step back from their decision to buy a property, thinking about the cost and time to maintain the property. Everybody doesn’t have the necessary experience or tools to mend leaky faucet, or clean the parking lot during snow. Moreover, it may not be wise to invest in a property outside the owner’s geographical location.

You can simply hire a property manager to handle everything pertaining to your property. Property managers have the relevant experience to work at local, regional, and national level. They have the ability to handle different properties like medical office and multifamily as well. The defining characteristic of a property manager is his or her ability to address the problems of tenants, to retain them for as long as possible. However, there is a setback: you have to pay the property manager 3% of your property’s gross revenue.

You can always go for NNN investments. A triple-net lease dictates that the tenant bears the sole responsibility of performance, maintenance, and payment. This also includes all kinds of operating costs, insurance and taxes for the property. So, NNN investments allow the owners to enjoy the privileges of ownership without bearing the burdens of costs or property management.

NNN investments don’t relieve you of every landlord responsibility. Property tax payment, keeping the property leased, servicing any mortgage loan on the property, and collecting rent from the tenant are duties of the landlord. Any major renovation, like HVAC or roof, involves the landlord too. Besides, insurance related issues are to be taken care of by owners as well. However, when it comes to day by day operations, the owner has little or nothing to do. So, NNN investments are a good “armchair” investment.

Thus, NNN investments let you enjoy the fruit of investment real estate without toiling hard. But before you invest, get to know the degree of complexity and management costs of a prospective investment real estate.

About the Author

Dwaine L. Clarke is the Founder and President of GCT Net Lease. GCT Net Lease is an investment real estate services firm exclusively focusing on Single and Mult-Tenant Net Lease Properties. The firm provides a full range of brokerage and advisory services nationwide to High Net worth Investors, Developers, REITs and Institutional Investment Funds. GCT Net Lease is headquartered in Windsor Connecticut. Dwaine is also a nationally recognized speaker and consultant. He is also the author of three best selling commercial real estate investing books. Mr. Clarke’s experience branches through close to over a decade of working with and for some of the nation’s top investors to purchase, underwrite, develop and manage millions of dollars in commercial investment real estate. For his case, he has not only assisted these investors, but also became a student of theirs. Through careful analysis he started to understand what these investment experts were doing, using top strategies to buy, manage and sell their investment properties for maximum profit. He especially took note of how these investors were leveraging their time and how they made their decisions without interfering with their personal or business lives. Mr. Clarke is also active in investing and creating real estate partnerships, providing a vehicle for high net-worth individuals to own income producing real estate.

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