When you invest in a commercial property, your hope is that you can make enough from the renters that you not only pay off your loan easily – you also profit off of your property. A triple net lease is one of the best tools at your disposal for profiting off of your property, because they take away from one of the most problematic of expenses – upkeep.
In general when you lease out a commercial property, you’re still in charge of maintaining it. You have to cover any costs associated with ensuring the property is up to code, free of damage, etc., and all of those expenses cut into your ability to profit. Yet some business owners are able to get what’s known as a “triple net lease,” which is an agreement where the company or individual renting the property covers every single cost associated with the property:
- Property Tax
- Insurance
- Maintenance
If there is a cost that comes up with the property – whether it’s something minor like pest control or something expensive like repairing property destruction – the company that leases the property is responsible to for paying it, and the property owner gets to take a hands off approach.
What is a Triple Net Lease Loan?
So triple net leases are already advantageous to the property owner. But if you’re already going to take a hands-off approach to running the property, the long term payoffs of the triple net lease may not be providing you with the value that you hoped would come from the property. After all, you already know that you no longer have to worry about costs, so why should you have to wait to see the return?
That’s why many commercial property owners seek out a triple net lease loan. These are loans that provide up to 100% of the value of the property/lease, paid up front with the knowledge that triple net drastically reduces the risks. These are property loans that do not require property as collateral, and a great way to get cash up front with the knowledge that the NNN lease will provide a guaranteed long term payout.
If you’re interested in learning more about triple net loans, sign up with CRE Lender today. We’re the number one source for connecting commercial property owners with lenders that are ready to take on your loan. Sign up today and get instant access to thousands of lenders ready to handle your transaction.
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