What Are NNN Properties? Why Triple Net Leases Are So Powerful for Investors
What Makes NNN Properties So Special?
Now that we have explained the reasoning and power behind our Real Estate investment strategy, lets look at an example property. This property is breaking ground this month and it is what is considered NNN Commercial.
In a NNN property all expenses such as taxes, insurance, lot maintenance, repairs etc. are all paid by the tenant leaving the landlord almost 100% of the rents to use for debt service and profits. Definitely one of the best leasing terms available to landlords.
Just A Few Advantages Of NNN Properties:
- Long-Term Lease Stability: Leases are often structured for 5-20 years
- Creditworthy Tenants: Especially in new builds, tenants are commonly high quality & credit strong
- Inflation Hedge: Our NNN leases include rent escalation clauses providing a natural hedge against inflation
- Tax Benefits: NNN properties are allowed the same tax benefits as other properties such as depreciation, but in addition there are more tax credits/deduction options available through energy efficient building
Project Highlights:
- 9600 SF 6-unit commercial complex
- The overall build time is estimated to be 8 months
- Since it is located in the path of progress we expect to be fully rented before completion
This property will be combined with 7-10 additional properties to create the StoneCrest Prosperity Fund. Investors will share in the cash flow and equity of all the properties combined.
If you would like more specifics please schedule a call and I would be happy to fill you in on the details and brief you on our Industrial Flex project that is coming up next!
I hope you have enjoyed the newsletters so far. If you would like to further your investment education consider joining our StoneCrest Equity Alliance where you will be the first to know about upcoming opportunities, get invited for exclusive site visits and receive even more in depth knowledge on syndications.
As always, we are here to answer your questions and help you achieve more wealth.
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