NNN plus lease
・Leasing contract concluded among representative owner and tenants
The advantage that common real estate investment (TIC) brings is as explaining by "
What is TIC?", "
Safety of TIC", "
Profit that can be expected", and "
Advantage of TIC". The invested people have the following advantages. It is a steady tenant income where one of the elements that enable such an advantageous investment rises every year. It is a leasing contract that becomes the basis concluded among the representative owner and tenants of the entire article. The outline of a triple net and the leasing contract (NNN plus lease) is as follows.
- It is provided that each tenant connects the leasing contract after it agrees that it is
a common real estate property.
- It becomes assumption that secures a tenant income steady because the lease
period is a long-term contract of 20 years.
- It is provided that it is "Triple net" contract. The repair, maintenance, rebuilding, insurance, and the utility bill, etc. are all contracts assumed the load of the tenant, and each investor is not responsible at all to say nothing of representative owner's FOR1031 company. loads of the tenant of all the management expense
- It is provided that the amount of a basic rent plus increase is paid during
year ,divided into 12 portions.
- The property (equity) for the investment can be able to be sold off by the market price in
addition to the tenant income that rises every year.
| Rise of tenant income when $1 milli on is invested(sample) |
| Year |
＄ |
| 1 |
$70,000 |
| 2 |
$71,400 |
| 3 |
$72,800 |
| 4 |
$74,300 |
| 5 |
$75,800 |
| 6 |
$77,300 |
| 7 |
$78,800 |
| 8 |
$80,400 |
| 9 |
$82,000 |
| 10 |
$83,700 |
| 11 |
$85,300 |
| 12 |
$87,000 |
| 13 |
$88,000 |
| 14 |
$90,600 |
| 15 |
$92,400 |
| 16 |
$94,200 |
| 17 |
$96,100 |
| 18 |
$98,000 |
| 19 |
$100,000 |
| 20 |
$102,000 |
