In this video Joel, Principal Broker gives advice on why an investor should consider triple-net properties vs other types of properties. He states that unlike other asset/property classes such as multi-family, residential houses, etc. triple-net properties are more of a passive investment that tends to generate headache free higher return(s).
What makes triple-net one of the safest investments?
Joel states that “Triple net investments can be a headache free investment with higher returns than with alternative investments”. Alternative investments include options such as savings accounts, CD’s, government bonds, etc. He advises that triple-net investments are generally one of the safest investments because they tend to have national investment grade tenants with long term leases and predictable rental increases with cash flow.
What’s the average cost of a triple-net investment property?
Joel states that you need a minimum of 500,000 down and close to 2 million purchase price to find quality properties in urban to suburban core locations to begin investing in triple-net properties at a lower price point. NNN, for example, can be cheaper to achieve passive returns versus the size and scale needed for other property types.
An example of a more intensive asset class that needs large scale triple-net property is a multi-family building. On average, a larger multi-family building has 90-100 doors or more needed to get to a passive status. If the average costs per door are 60,000 to 80,000 a unit then purchase price could cost 6,000,000 to 8,000,000 and require much more capital then purchasing a retail property where you can get a passive return at a much lower cost and investment.