You don’t know how many times I’ve heard something along these lines from fellow physicians, “I’d love to own a real estate investment property but I don’t want to be called in the middle of the night for plumbing issues. It’s too much of a hassle.”
If this resonates with you, then a great solution for you might be investing in something called a Triple Net Lease (NNN) property. To help me explain what that is, I’ve decided to write this post in more of a question-answer type format.
A triple net lease is a commercial property in which there is most commonly a single tenant and that tenant is responsible for taking care of any and all issues.
So they take care of “the three nets”:
Net #1 – Property Taxes
Net #2 – Insurance
Net #3 – Maintenance
That means that you as the owner will not get called to unclog a toilet in the middle of the night or deal with monthly utility bills. The tenant is responsible for all of that. Typically there isn’t rapid turnover, so you don’t have to worry about re-renting often and you won’t get called about tenant battles like one tenant playing his music too loud late at night.
Hopefully, you’re seeing that it requires very little management. Essentially all you have to do is basic bookkeeping, file tax returns every year, and make the big decisions like when you want to refinance, sell or exchange the property. This makes it very attractive for owners, particularly those