An NNN property is a parcel (building and/or land) of commercial real estate leased to a corporate tenant who is required to pay rent and all property expenses for the life of the lease. NNN lease agreements usually include regular rent increases over time, ensuring a growing income stream for the property owner and helping to raise values.
Properties with these stable, long-term commitments to pay rent have been bought and sold in the marketplace for many years. They have provided a secure, stable source of income and asset appreciation to wealthy investors and their families for generations. Now with RealyInvest, even beginning investors can participate in NNN investing.
RealyInvest curates select NNN offerings that usually include a parcel of real estate and a purpose-built building on that parcel (a quick service restaurant with drive-through, for example). At the end of the lease, RealyInvest investors own both the land and the building, which can be re-leased to the original tenant or leased to another suitable corporate user.
The kind of NNN properties RealyInvest selects are leased to the best name brands in America. These companies are investment-grade (rated by Standard & Poor's, Moody's or Fitch). We may also offer a property such as a Taco Bell, where the lease is guaranteed, not by Taco Bell Corporation, but by a large franchisee with a successful track record.
These leases are usually ten years in duration-so this is a longer term investment. All the while the owners of the properties (You!) are being paid a dividend income of around 4% to 5% per year (paid to you or reinvested quarterly).
Also, the rent payments go up over the term of the lease. This helps the land and buildings increase in value. While we cannot guarantee any return, at the time we sell the property we are shooting for a total return (dividend income reinvested and capital gain) in the neighborhood of 8%-10% per year. Some properties offered will bring a little bit better return year after year and some of the most desirable properties will bring in a little less year to year but will excel in total return when re-leased at a higher rate.
Still confused how NNN leases work? Here's a hypothetical example:
RealyInvest offers the opportunity to buy an NNN Verizon phone store. Verizon Corporation is rated BBB+ by Standard and Poor's, and has a ten-year lease, including regular rent escalations on the property and three options to extend.
RealyInvest's investors purchase the ground and the building built and occupied by Verizon. Verizon Corporation is solely responsible for all rent, rent increases, taxes, maintenance and all expenses.
Verizon Corporation pays rent to RealyInvest, which provides a yield and dividend income to our investors.
Toward the end of the first 10-year lease, RealyInvest sells the Verizon phone store based on its increased rent revenue and distributes the proceeds to our investors.
NNN properties provide a long term, steady source of income with a much better yield than most other similarly conservative investments.
RealyInvest strives to achieve the most income for our investors. Dividend yield is far higher than a bank or money market account.
NNN tenants are obligated to pay all expenses, as well as rent. Rent payments remain the same and rise as the lease matures, whether the stock market moves higher or lower. Investors can count on a steady and increasing income stream as their properties potentially appreciate over time.
There are no hidden fees or complex formulas. Rent is paid by tenants; we pay our investors in dividends, and pay out proceeds when assets are sold. RealyInvest investors can never be responsible or liable for any funds beyond their initial investment and monthly fees.
Historically, these types of investments have outperformed the stock market. While the S&P 500 stock index appreciated 55% since 2000, premier commercial real estate has appreciated 144%.
RealyInvest plans to offer our investors the chance to buy into a diverse portfolio of premier or investment-grade properties with leases to the best name brands in American business.
Receive a free REIT share worth $20 of our Starbucks-occupied NNN property just for signing up on our waitlist. Limited slots available so hurry up!
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