Triplet net leases are a fascinating type of lease. For those that own commercial properties, these types of leases are specifically designed to make sure that you are able to collect on your property without very much involvement:
- You do not have to pay for maintenance or repairs.
- You do not have to pay for insurance.
- You do not have to pay for fees associated with land ownership.
There are essentially zero costs to you for the life of the property, because the tenant has agreed to pay for all of them – all three “nets.”
For the tenant, a triple net lease means that they are able to get their hands on a great property, treat it like their own property, and often get slightly lower rate as a tradeoff. It means more control of the property and less landlord involvement as well.
But what about for banks? Why would a triple net lease mean something to banks?
How Banks View NNN Leases
Triple Net Leases matter to banks as well. Banks see them as a great lease type for the commercial property owner, especially if the tenant’s business has an excellent credit rating and/or is a publically traded company.
Even though banks are not typically involved in the lease itself, they are often involved in loans that relate to the lease. Banks may offer what is known as credit-tenant lease loans to commercial property owners. These are loans that pay out the NNN Lease up front so that property owners do not need to wait to collect on the loan. It allows you to see an immediate lump sum of cash, rather than wait decades for slower payments to come in.
Banks and lenders are very fond of triple net leases, particularly because high credit tenants represent very little risk for the bank and the property owner. They are often able to provide these loans at a low interest rate and let property owners relax knowing that they no longer have to worry about their property.
If you want to connect to lenders that provide triple net lease loans, sign up with CRE Lender today. We’re experts at finding you a bank or lender that is ready to cash you out and let you spend that money any way you want. Sign up with CRE Lender now.
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