NNN Investments

Triple-net (NNN) properties can provide good deals for real-estate investors. They typically offer stable income without burdensome management responsibilities. NNN properties generally feature long-term leases, and low-risk tenants, as well as attractive financing and tax benefits. However, NNN properties still require due diligence.

Factors such as location, size, use, market conditions, and trends are important to consider. These and other issues must be explored in determining the value of a property. The investor should also take care in considering both positive and negative scenarios for the future. For example, having a property sit vacant for a significant amount of time would be a negative scenario.

Location is important, as a property in a less than optimal area could present problems in terms of obtaining new tenants in the future. Market factors like the demographics, income, and employment trends in an area also figure critically in determining the value of NNN property. Likewise, certain types of buildings may positively or adversely affect property value. Some buildings used for highly specialized businesses may present real difficulties when it comes to adapting them for other types of businesses. Even standard buildings don't escape scrutiny. In certain situations, they too may require extensive work. Costs for such work can be significant and should be included in the valuation analysis.

All in all, NNN deals hold solid benefits for investors. The key to being successful in these deals lies in developing a thorough understanding of a property before purchase, weighing risk, marketability, and value, and choosing accordingly. At TM 1031 Exchange, we strive to make the selection process easier for investors and their brokers or agents. We work to provide investors with information about properties that fit their unique requirements. For more information about NNN investments, contact us toll-free at 877-4TM-1031 or via e-mail team@tm1031exchange.com