There is a report that we highly recommend reading titled Net Lease Single-Tenant Retail Report: Fall 2009, written by Andrew Fallon, on net leased property in today's market. The comprehensive report details all of the most recent market trends and data available for the retail net leased property industry. Let this be another source of education about NNN Leases and Real Estate Funds. Triple-net leases are a smart investment to consider with current market trends showing CAP Rates growing to 7.75% – 8.75% in the retail Sale-Leaseback market. The article concludes, "Concern about rising vacancy levels and falling rents promote the appeal of single-tenant net lease investment sales. Additional market uncertainty could influence investors to consider more long term wealth preservation strategies. The volatility of Wall Street continues to worry investors who might start avoiding stocks and bonds, and begin evaluating core real estate investments." You can find it online: http://calkain.com/reports/NetLeaseSingleTenantRetailReport-Fall2009.pdf
For investment options please email us: info@IridiumCapLLC.com or visit our website
Thursday, December 3, 2009
Wednesday, December 2, 2009
What is a NNN, or Triple Net, Lease Property?
A NNN Property is an income-producing property which provides rental revenue to the owner Net of all expenses. The tenant is obligated to pay all taxes, insurance, and building maintenance costs, as well as rent. Thus the annual income derived from the property is Net Net Net of all operating costs.
Characteristics: There are several key factors to consider when evaluating a NNN property. The most important is the lease term. While NNN lease terms range from 1 to 50 years or more, a prudent term is one that allows the purchaser to recoup most, if not all, of their acquisition costs through rental income. Since most leases contain pre-established rent escalations, higher rental income is obtained in the latter years of the lease. A reasonable holding period permits multiple rental escalations over the term of the lease. Many NNN leases are signed for 15-20 years and may have multiple 5-year renewal options. To protect the owner of NNN leases from tenant default, it is imperative that the leases include a corporate guarantee, making the corporation liable for rent throughout the term of the lease.
Want to know more? visit our website or email info@IridiumCapLLC.com
Characteristics: There are several key factors to consider when evaluating a NNN property. The most important is the lease term. While NNN lease terms range from 1 to 50 years or more, a prudent term is one that allows the purchaser to recoup most, if not all, of their acquisition costs through rental income. Since most leases contain pre-established rent escalations, higher rental income is obtained in the latter years of the lease. A reasonable holding period permits multiple rental escalations over the term of the lease. Many NNN leases are signed for 15-20 years and may have multiple 5-year renewal options. To protect the owner of NNN leases from tenant default, it is imperative that the leases include a corporate guarantee, making the corporation liable for rent throughout the term of the lease.
Want to know more? visit our website or email info@IridiumCapLLC.com
Triple Net (NNN) Property Investing
Investors looking to diversify their portfolios and elevate returns have historically turned to real property as an alternative to cash, bonds, commodities, and precious metals. Recently, many investors hit the pause button when it came to their investment plans, due to either a risk-averse philosophy, the lack of a trusted adviser, or the seemingly steep cost of real property investing.
However, these is a strong alternative for real estate investing that provides ongoing revenue and reliable safeguards. For a meaningful and affordable investment, NNN properties offer unique opportunities for high returns at relatively low risk.
There are many ways to invest in NNN properties. An investor can purchase a property outright, which usually requires a large capital investment. This form of ownership gives the owner complete control over his investment and responsibility for the tenant's adherence to all lease terms. Investors can also invest in real estate funds which purchase NNN properties. These funds pool resources from many investors to create a diversified portfolio of NNN properties. The funds also attend to all aspects of property and fund management, allowing the investor a passive investment.
For More Info please email us: info@IridiumCapLLC.com or visit our website
However, these is a strong alternative for real estate investing that provides ongoing revenue and reliable safeguards. For a meaningful and affordable investment, NNN properties offer unique opportunities for high returns at relatively low risk.
There are many ways to invest in NNN properties. An investor can purchase a property outright, which usually requires a large capital investment. This form of ownership gives the owner complete control over his investment and responsibility for the tenant's adherence to all lease terms. Investors can also invest in real estate funds which purchase NNN properties. These funds pool resources from many investors to create a diversified portfolio of NNN properties. The funds also attend to all aspects of property and fund management, allowing the investor a passive investment.
For More Info please email us: info@IridiumCapLLC.com or visit our website
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