Why Buy NNN Properties

Net leased assets have become one of the most sought after investments in commercial real estate, and for good reason. Here are some of the benefits:

• With no daily hassles or management to deal with, net leased properties are a popular choice for investors who prefer a passive income and may not have the time, desire, or experience to deal with the day-to-day responsibilities of managing a property.
• Since most net leased properties involve either Fortune 500 companies or high net-worth franchisees who guarantee the lease, these are one of the least risky of all real estate investments, especially when there are a considerable number of years remaining on the lease, and the tenant is a nationally recognized brand with a proven and reliable concept.
• Location, location, location! National companies such as those mentioned above go through a competitive and painstaking process in selecting the best possible locations. Therefore, when it comes to choosing the best location for your investment, the work has already been done for you when you’re purchasing a NNN property.
• Net leased properties offer a more stable return as compared with other alternatives including multi-family investments, where annual returns can be difficult to predict due to repairs & replacements, vacancy & collection losses, and fluctuating market rents. 
• NNN properties provide investors with a safer and more stable alternative to the highly unpredictable and volatile stock market. 
• Because no management is involved, you can choose from anywhere throughout the U.S., including states that do not levy income tax. While NNN properties do sell fast, being able to choose from locations anywhere in the country will give you more options to choose from, as opposed to waiting and waiting for that perfect property to become available in your hometown.  
• NNN properties are a great estate planning tool, ensuring income stream and appreciation with no need for management expertise for your heirs.  
• Banks like lending on NNN properties, especially those with corporate guarantees. With less risk to the bank, terms are often much better than financing for other types of real estate.
• NNN properties are ideal for 1031 exchanges. Investors using the 1031 exchange strategy make up a large percentage of the NNN market, because this strategy can eliminate your management responsibilities, while simultaneously increasing your cash flow and eliminating capital gains tax upon the sale of your current property. 
• NNN properties remain strong during economic downturns. This is due not only to the financial strength and credit behind the corporation guaranteeing the lease, but also due to the fact most NNN tenants are necessity based businesses such as pharmacies, quick-serve restaurants and auto parts stores among others.