THE NNN LEASE STRATEGY
This is accomplished by "Triple Net Leasing", which is the process of leasing a property to a third party, usually an institutional investor like a pension fund or university endowment. All of the cash flows pass through the real estate owner's assigned NNN account. The leased property becomes an investment that generates passive income on a regular basis for the owner through long-term leases and ongoing management services.
The Portfolio Building Blocks
The portfolio building blocks are the basic structures that can be used in a NNN strategy. They are designed to provide both long-term stable cash flows and generate returns that outperform the S&P 500 index. The basic structures for all NNN Lease acquisition Strategies will contain Stable long term Anchor tenants which i consider as the empire building blocks for any long term investment.
Anchor Tenant Lease Strategy
The anchor tenant lease strategy is based on a lease to a single anchor tenant, usually an institutional investor. This type of investment provides long-term stable income for the property owner.
The Stable Economic Base Strategy
The stable economic base strategy is designed to provide a stable income and moderate appreciation by leasing properties to any number of institutional or private sector tenants that meet the same predefined criteria. It is limited only by location, property type and size.
The Emerging Markets Strategy
The emerging markets strategy is based on the premise that while emerging economies will grow at a much faster rate than developed economies, they are also more prone to risk in the form of commodity fluctuations, currency fluctuations, war and civil unrest. So retaining or selling these properties will often result in a significant loss in value if there is a change in market conditions. The idea behind this strategy is to provide an investor with capital appreciation while providing a strong income stream.
The Triple Net Lease (NNN) is a unique long-term investment strategy used by real estate owners who seek to generate stable income from investments in the form of long-term leases. It allows owners to make less-risky investments that provide them with steady returns, and it comes with significant tax benefits.