Triple Net Leased Commercial Properties | A Guide To Management-Free and Headache-Free Ownership

Friday, November 28th, 2008 | local info

Are your real estate investments giving you a management headache?

Are you tired of tenant complaints and property destruction? As a real estate investor, are your goals security and predictable, partially tax-sheltered income with an inflation hedge? If so, then Commercial Triple Net Leased property is an excellent vehicle to create wealth through real estate. This investment requires little or no management, has little risk, and produces monthly income from Lease payments. The Lease Agreement can also provide the opportunity for rent increases as a hedge against inflation.

How this does differ from owning other investment property?

Unlike owning duplexes, apartments, land or an office building, owning a commercial property under a Triple Net Lease Agreement to a business tenant is a passive investment — management and headache free! In other real estate investments such as rental houses, mini-storage facilities, apartments and office buildings you as the property owner must perform the property management duties and pay all operating expenses. You rent the property, collect the rents, refurbish the premises, pay the property taxes, insurance premiums, maintenance, accounting, legal, and other operating expenses. Whereas, under a Triple Net Lease arrangement the Tenant agrees to perform all these functions for you as the owner of the property in return for a long-term Lease Agreement.

With the ownership of commercial property under a Triple Net Lease arrangement, the Tenant operates his business and pays all expenses (tax, insurance, maintenance) in that location for the duration of the Lease Agreement. This type of real estate investment is passive, similar to owning stock in General Electric. And you receive the dividends or, in this case the rent payments, monthly. Further, these types of commercial Tenants are positive business renters. Unlike apartment renters who tend to abuse the property and then move out leaving the owner to refurbish and to find new renters, commercial Tenants have a vested business interest in seeing that a location is well maintained and attractive to customers.

The best way to achieve an education in real estate investing is to take a real estate investing course. There are a number of real estate investing courses available on the internet , however, the 3 Net Lease profits course is often found at the top of the list for all types of investors.

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