By Alan Fruitman, author of The NNN Triple Net Property Book
NNN leased properties are hot. 1031 exchange buyers, baby boomers, doctors, lawyers, REITs and seemingly everyone else who has money to invest wants to own NNN property.
Before 2008, many investors desired shopping centers with high vacancy and upside potential. These investors thought the predictable cash-flow from NNN properties was boring. However, in 2013, “high vacancy” and “upside potential” with multi-tenant properties were keywords for danger and foreclosure.
Guaranteed income, a tenant with an Investment Grade Credit Rating from Standard and Poors, a long-term lease, no property management, no property maintenance, and a prime location are what investors now crave. These are the attributes that make NNN properties so desired and hot.
NNN properties are one of the only investments that yield stable and guaranteed income with a relatively high rate of return. Multi-tenant properties have sporadic vacancy, management hassles and continuous maintenance requirements.
Investors often purchase NNN properties for the passive/retirement income. In addition to retirement income, it is very easy for a spouse, child or charity to inherit a NNN property since minimal real estate expertise is needed to own this type of investment.
Robust investor demand for NNN properties has created a challenging marketplace. The inventory of available properties is low, and properties sell fast. It is not uncommon for a quality property that is properly priced, with a long-term lease (15-25 years) from a financially strong tenant, to receive multiple offers the first day the property comes to market.
Receiving and promptly reviewing NNN properties the first day the property comes to market, or before the property officially comes to market, is one key to your purchasing success.
Another key to your purchasing success is being decisive. Once you find the right NNN property, you must quickly submit a Letter of Intent (LOI) to purchase the property. If you wait, another buyer will secure the property before you do.
1031tax.com receives and reviews more than 100 NNN properties from its network of developers, owners and real estate brokers every day, selects the best of the best, and sends between 5 and 12 confidential NNN properties to its select principal buyers every weekday.
Here are a few examples of credit worthy companies (tenants) that 1031tax.com sends to its clients: Walgreens, McDonald’s, Chipotle, Chick-fil-A, AutoZone, Dollar General, JP Morgan Chase, Wells Fargo, 7-Eleven, Wawa, etc.
Visit the 1031tax.com website or call Alan Fruitman at 1-800-454-0015 to receive a list of available NNN property and a complimentary copy of The NNN Triple Net Property Book.