Are Single Tenant, Triple Net Properties occupied by credit worthy tenants with long term leases great buys for investors in this economy? What are the pros/cons in dealing with these type of properties?
In Buying Property - Asked by Mani J. - Aug 13, 2009
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Gregory G.
San Francisco, CA

Yes, they are the best in my opinion. They are like purchasing annuities and your investment is secure with a set cashflow often as many as 20 years. Get a stable tenant like CVS, AutoZone, etc... and your golden. There are no cons other than having the property tied up.

Aug 13, 2009
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Davide P.
Pinole, CA

I wouldn't say they were great buys, but they would as Lance said be one of the safer ones. The pros are a regular stream of income and no hassle with management. The cons are that you're putting "all your eggs in one basket" - if the tenant files bankruptcy you have to find another tenant for the one single property. The other con I would say is the amount you would receive from your investment. Usually NNN start at a 5-8% cap depending on where you are located. In the same area you can usually find slightly higher returns with more "risky" or management heavy properties.

Aug 13, 2009
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Dan M.
Peotone, IL

A NNN property of a credit worthy tenant is a great buy in today's market. The obvious con is that the tenant would go into bankruptcy and not be able to pay the rent. but the pro is that there are great returns today on NNN propeties from companies that are highly unlikely to go bankrupt. There are new Walgreen Drug Stores with a NNN lease offering a 7.5% return. Walgreens will probably not go bankrupt and it is a safe investment. But today's market offers NNN leases from other solid companies with a 10% return. There is a risk of course in anything, but these are companies that are on very solid ground and will pay that type of return on your money. If you would like more information and a list of such properties, please call me at 708-204-2064, Dan Murray, Broker/Owner First Metro Realty

Aug 24, 2009
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