Today we look at if the Lease is really triple net? Is it absolute net, triple net or double net?
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In NNN investing, the lease is one of the most important things. The point of investing in NNN properties is to have a hands off investment.
When buying NNN properties make sure to read the lease to see if it is really true NNN or not.
Many triple net brokers and NNN sellers will advertise the lease as "net leased" or "ease of management" or "minimal landlord responsibilities" . Often times the lease will have more landlord responsibilities that advertised. Thomas Morgan, CCIM of 1031navigator.com talks about absolute net leases, NNN leases, and NN leases.
Beware of opening escrow without having read the lease to see if it is triple net or not. This will save you time and money on your 1031 exchange NNN property purchase.