May 24, 2024


Mad about real estate

Are Net Leased Properties Good for Beginners?

New to real estate investing and wondering if net leased properties are a good idea for you. It’s a good question to ask if you’re even thinking about getting involved in the great big world of commercial real estate investing. The more questions you ask at this stage of the game, (when you’re first getting involved), the better prepared you will be to make an informed decision about the best types of investment properties for you.

NNN Leased Properties 101

Getting started with these types of properties can be ideal for someone who knows little about the “ins” and “outs” of owning commercial real estate or even someone that is hoping for a “no hassle” or “low stress” sort of real estate investment. It gives you the benefits of property ownership without many of the worries that go along with it. Most people who invest in this type of real estate wouldn’t trade it for the world, if they have a choice in the matter.

Economic Factors for Investing

The biggest question you’ll have before making an investment in net leased properties is whether or not you can come up with the capital. These are not small investments. However, they are investments that are great building blocks for a secure future in commercial real estate. As a first investment, many new investors will find these properties just beyond reach. If you have the means, however, it is an excellent choice that can be leveraged (with the beauty of a 1031 exchange) into an even more profitable NNN Lease property in the future.

What 1031 Exchanges means for Net Lease Property Owners

If your goals are to build a financially stable future for your family through real estate investing, you’ll have a lot to think about with net leases.  These properties offer plenty of benefits to those who are inexperienced with real estate investing and an absence of hassles that is appreciated by those who do have experience in this market. 1031 exchanges allow you to get your foot in the door with the smallest possible investment along with the ability to build up to larger investments without paying a tax penalty at various stages in between.

When you combine the power of the NNN Lease with the beauty of a 1031 exchange, you get all the benefits of real estate investing with very little of the “growing pains” that many other investors have had to suffer through along the way. If you can start out with this type of investment, it truly is the way to go.

Ultimately, any property investment you undertake will have pros and cons. You and you alone will have to decide if you are interested in starting out with the high cost/high stability NNN lease, if you prefer a lower cost buy in, or even a property that offers greater risk with the potential for greater reward and faster growth.