Long-term investments do not necessarily mean that your money becomes inflexible. Instead, you should invest in such a way that you can generate a steady income. To ensure this, you need to invest intelligently by aligning your portfolio to your investment goals. Furthermore, you need to ensure that your returns outweigh your risks. One of the surest ways to ensure this is by investing in NNN properties that are for sale. Continue reading to know more about NNN properties and benefits of buying them.
What are triple net(NNN) properties?
NNN properties are pieces of real estate that can be leased to commercial franchises or corporations. Here, the tenants undertake all operational and management responsibilities of the property apart from paying rent to the owner. No investment is risk-free; however, investing in NNN properties has proven to be a highly profitable venture for investors.
To invest in NNN properties, you must have an accredited net worth of at least $1 million. This value is excluding the value of their residential real estate or $200,000 in income. Other investors who have lower net worths can invest in NNN properties for sale by investing in REITs or Real Estate Investment Trusts.
Benefits of buying NNN properties for sale:
- Higher returns, little risk
NNN properties for sale are one of the most secure investments. If done right, these properties will help you earn high returns with very little risk. Generally, the tenants for these properties are franchises such as McDonald’s and Burger King. The leases on such properties are long term, which further reduces risks as you do not have to worry about new tenants anytime soon.
- NNN properties are free of expenses
Generally, while leasing NNN properties, the tenant is responsible for all operating expenses such as taxes, insurance, and maintenance. This grants you freedom from making substantial payments, allowing you to divert your money to other profitable schemes. Additionally, you do not have to worry about any sudden expenses and have a steady flow of income.
- Higher profits, fewer taxes
With all operational expenses paid by the residing tenant, an NNN property becomes your profitable passive investment. All taxes such as property taxes, water taxes, and electricity taxes and borne by the tenants. Moreover, you can file for 1031 and 1033 tax-deferred exchange code and get a further tax deduction on your returns.
- NNN properties allow a diverse portfolio
Apart from being a profitable investment, NNN properties also diversify your portfolio. As a seasoned investor, you know the necessity of a diverse portfolio. Not only does it help you earn higher returns, but also can turn into a dependable source of income when the market is underperforming. Moreover, the best part of it all is that it also provides the same benefits as other real estates.
