Triple Net Lease (NNN) Properties & Trust Deed Investing
After over 38 years of being involved in all domains of the real estate industry, it is both Dr. Lotz’s and TripleNet Investors’s belief, that by investing in Triple Net Leased (NNN) properties and Trust Deeds, in the United States, your long-term wealth creation and preservation plan is built on a solid foundation.
You can avail yourself to our real estate expertise from A-Z, as it relates to finding the best vehicle to suit your risk tolerance level. At TripleNet Investors our mission is to be the premier choice for both Triple Net Properties and Trust Deed investments. TripleNet Investors will use its expertise, in the case of Trust Deed investing, to bring borrowers and investors together to create a lasting, profitable partnership for all parties. Our mission as it relates to Triple Net properties, is to find and acquire the safest assets for your capital preservation.
Leading the way in the safest of all USA real estate investment vehicles, is the triple net lease. The tenant pays for all the maintenance, taxes, insurance and capital repairs of the building while occupying and sends a check, once a month, to the real estate investor regardless of where they are in the world. This is the personification of “Coupon Clipping”. This is why so many foreign investors, love and desire United States commercial real estate income property and compete to own these investments. These investors, while they are collecting their rent, don’t have to worry about the property they have invested in or the tenant, as in most cases the tenant is a credit worthy risk. The majority of leases range from 15 to 20 years or more with increases (COL – Cost of Living) built into the lease or the option periods when renewing. The tenant locations are usually premier retail locations at major or primary locations. Therefore if they decide to leave (they are still liable for the rent), it is usually easy to release this location to another quality tenant.
With regard to expected returns, you need to be cognizant that the preservation of your capital while investing, is weighed heavily in deciding to move forward, so the returns cannot be excessively high or the risk becomes greater of a possible down cycle.
Better credit of the tenant and the stronger or primer location, the lower the return! Therefore a 5% to 7.5% return should be envisioned for higher quality triple net leases in the United States.
Not to be forgotten are those USA tax benefits available to you for the writing off of interest on any loan taken out, along with depreciation of the physical structures if any. The IRR – internal rate of return, therefore varies with each tax holder but it always adds some positive element of increased value to the bottom line when investing in US income property.
The Triple Net Leased property is another advantage of owning property. A 1031 trade or Starker Exchange is also in the mix should you decide to sell or if you want to delay your taxes on any profit you may gain over time while owning these great real estate investment properties. A Caveat; always consult with your tax advisor and real estate attorney when deciding to move forward on any United States commercial real estate income property purchase.
How Easy is This?
We are often asked as to how easy is it to find and purchase a quality Triple Net property or Trust Deed investment property.
TripleNet Investors is in business to provide proper guidance as to the relevant investment, so that your risk reward tolerance level, as mentioned previously, will determine the outcome. We will present to you all possible scenarios and you can decide which is the most comfortable position to take, utilizing your common sense in conjunction with your tax advisers and real estate attorneys.
Unites States commercial real estate income property provides a full menu of tenants, locations, credit standings of tenants, and returns that will allow you to chose your best option from many choices. Commercial real estate options and opportunities are endless, so finding the property is not difficult but choosing among the selections is the harder decision.
A minimum of at least $500,000 will most likely be required to buy a quality investment and financing is available with as little as 25% down payment, though this will reduce your return. TripleNet Investors has access to financing. Of course, you could joint venture amongst family and friends to acquire a property.
Most higher quality United States commercial real estate properties are in the range of one million plus, and thus a healthy down payment is required to finance the balance, in order to purchase, unless you have all cash available.
There are alternative strategies available through real estate partnerships and real estate funds. These are sold by registered representatives, usually charging high fees for their services and compliance is very stringent. These forms of investment vehicles can be set up with and through our Legal & Financial Professionals should you wish to invest in this manner.
In any event, you could go this route with $50,000 usually being the minimum investment and you will need to be an Accredited Investor, meaning having a net worth of over one million or an annual income of $200,000, or if your spouse participates a combined income of $300,000.