We all want to profit off of our investments. But sometimes investing can take so much of your time and effort that it is almost like a second job. When you invest in commercial properties, managing that property can take hours of your time and may cost you a lot of the revenue that you hoped you would see when you purchased the property.
But there is a way that you can make your commercial loan a bit more “hands off” – using a triple net lease.
Why a Triple Net Lease?
Triple net leases are leases that put all of the expenses associated with the property onto the tenant. The tenant not only pays rent – they pay for maintenance, insurance, upgrades, and taxes. They make every single payment almost as if they own the property, and you simply need to collect on their payments as needed.
Triple net leases mean that the property owner essentially has no responsibility for the property at all, and since the leases tend to be for significant periods of time (often over 20 years), commercial property owners can sit back and let their investment pay off.
True Setting and Forgetting
In an ideal world, however, you would be able to receive the value of the lease all at once, rather than waiting years for it to pay out. But because triple net leases are so advantageous for property owners, many of them are also appealing to lenders as well.
That’s why many lenders offer “Triple Net Loans.” These are loans that handed out to commercial property owners that pay off up to the entirety of the value of the property in one lump sum. Triple net loans may be used to:
- Pay Off the Property – So that you can collect from the lessee without worrying about loan payments.
- Pay Off Yourself – So that you can cash out the entirety of the value of the triple net lease and use the money now rather than wait the 10 to 30 years of the lease.
Triple net loans allow you to practically forget about your property completely, because it pays off for you almost immediately. With the lessee paying for maintenance and upkeep, you do not necessarily need to think about your property in order for it to benefit you.
If you’re interested in learning more about triple net loans or finding out what your triple net lease can mean for you, sign up with CRE Lender today. We turn your NNN dreams into a reality, and provide you with a low interest loan that will make your investment worthwhile.
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