One of the easiest ways to get cash for your investments is with a triple net lease loan, or “NNN Lease.” A triple net lease is a form of lease that allows property owners to rent out a property to someone that is willing to pay every cost associated with the property. These are the three “Nets:”
- Property Tax
- Insurance
- Maintenance
Essentially, with a triple net lease, the tenant is willing to pay every single cost associated with the property, and the property owner is able to take a hands off approach to the property. If anything breaks, or if anything needs to be built – all of those are in the hands of the tenant/company.
Turning a Long Term Payout Into a Lump Sum
For the commercial property owner, the value of these types of leases is pretty substantial. The property owner needn’t worry about maintaining the property, and instead can simply sit back and let the rent roll in.
The problem for property owners though is that triple net is slow to pay out. You have to continue to collect rent over the course of years. Thankfully there is a better option available – a triple net lease loan, or NNN loan. Triple net lease loans are large cash sums that are given to property owners in advance of their triple net payments.
With a triple net loan, you’re able to receive all of the money that you would on your lease – in some cases up to 100% of the property value – all at once from a bank, while the lessee’s payments go towards paying off the loan, rather than paying you.
Triple Net Lease Loan Applications
These loans – sometimes referred to as “Credit Tenant Lease Loans” – provide full financing to the borrower based on the quality of the triple net lease. Some lessees – like Starbucks, McDonalds, and other well-known corporations – have such a high rating that borrowers can receive the maximum loan possible given the value of the property, and the loan can be undersigned quickly and put in your pocket right away. Others may need more analysis from a lender, but if the NNN Lease is approved, you can receive 60, 80, and up to 100% of your LTV.
Because triple net leases are the basis of these loans, the best thing you can do is sign up with CRE Lender today. CRE Lender is proud to connect property owners with the lenders that will provide them the most value for their property at the lowest rates. Sign up with CRE Lender today to find out more.
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