Triple Net Lease and Commercial Real Estate

2 Replies

Hello friends!

I'm asking if anyone knows of, or recommends a course or training on the topic Commercial Real Estate Investing and Triple Net Lease tenants in an organized course/training? I just learned there are Triple Net Lease brokers out there as well. Any insights or point in the right direction will help me and I appreciate it!

Hi Tommy,

What specifically are you trying to do? Are you a broker trying to learn the commercial retail space? Are you a buyer needing help from a commercial broker to learn how to evaluate properties and purchase one?

I review about 1,000 a week and NNN is my specialty. There are a few books on the internet but not very detailed. Typically my clients learn the process through me when they purchase a property. You can also look through my almost 14,000 historical posts over the years on here many covering NNN properties.

@Tommy Nguyen

I followed your post to see if there are any responses. From what can see, it's a little discussed area. And I don't find many books written about it either.

My dad had commercial property where he rented to commercial tenants, more on a single or double net. I myself bought businesses where I had triple net, or NNN, which is common for free standing commercial structures. I paid the real estate taxes directly, responsible for all repairs, and insurance.

Usually, when you rent commercial properties, landlords like to rent to you on a NNN basis. From my experience, for someone new on this, there are some odds and ends that cost money. I always assumed the landlord is responsible for the structure. The commercial structure I rented had a bad roof, which the previous tenant and I did repairs to. But the landlord wants a brand new one, which I objected to. I finally did it, paid for it, when I finally sold the business. He would not agree to an assignment of the lease unless I did it. The prior tenant, whom I bought the business from even had to pay a $25K fee to get his assignment. There seems to be no hard and fast rules on assignment fees.

For real estate investing, we're talking about long term NNN leases, as I recall, terms of 30 years to 99 years. You can even secure mortgages on long term NNN leases. I attended the NYU school of continuing education that offers a certificate of real estate, and it's covered in one course. The professor was a broker who happens to be a real estate broker specializing in NNN leasing. The course as I recall is on real estate techniques, and he asked students what we want to cover as the course does not have an exact syllabus. Many students wanted coverage of "no money down" investing, such as "subject to". He said that NNN us even better and powerful, and he'll bring in the deal details of a number he did.

One of the misconceptions if long term NNN leases only applies to commercial real estate. It applies to all types of real estate, including residential, but most people are unaware of this technique. I overheard students in the class complaining that it's all BS, how could you make so much money on leases. So I showed the doubters a plaque on the first floor of the NYU school with the names of contributors who contributed $1 million or more to start the school, and this professor's name is on the top of the list. The doubters shut up.

From what I can see, there are brokers who specialize in NNN leases, but a smaller number in long term NNN leases, which is a different investment vehicle in itself.