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NNN Lease Explained


Many real estate investors are choosing to engage in single, larger NNN lease commercial rental real estate investments instead of a sole ownership NNN lease. This form of ownership is known as a tenants in common investment.

NNN Lease-tenants in commons are particularly popular because of their predictable cash flow backed by national credit tenants. Moreover, it is common for a tenants in common sponsor to convert a multi-tenant rental real estate into a NNN lease through a master lease structure where they lease the rental real estate back from the real estate investors on a NNN lease basis.

Consider the Advantages of tenants in common NNN lease rental real estate :

1. Freedom from Management: tenants in common-NNN lease rental real estate are managed by National rental real estate companies on the real estate investor's behalf. With no more rental real estate to manage, you have more leisure time to relax or pursue other interests.

2. Ready Availability: There is usually a steady supply of tenants in common-NNN lease replacement rental real estate for purchase.

3. Own Higher Quality rental real estate : exchangers can invest in larger, higher-quality institutional rental real estate than they were able to invest in as individuals.

4. Assisted exchange Process: You do not have to do the legwork to find the rental real estate that you want to buy.

5. Flexible Investment Size: Variable minimum investment requirements help real estate investors match rental real estate with their equity and/or debt needs.

6. Diversification. Proceeds may be split among several tenants in common NNN lease rental real estate.

7. Non-Recourse Debt: Pre-arranged non-recourse financing limits real estate investor's liability.




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