Why you should invest in a Triple Net Lease (NNN) REIT for income

A Triple Net Lease Real Estate Investment Trust (REIT) is a specialized type of REIT that primarily focuses on investing in commercial properties leased under triple net leases. To understand what a Triple Net Lease REIT is, let's break down the key components:

Triple Net Lease (NNN): A triple net lease is a type of lease agreement in which the tenant agrees to pay not only the base rent but also the operating expenses related to the property. These operating expenses include property taxes, insurance, and maintenance costs. Hence, the "triple net" designation refers to the three expenses (taxes, insurance, and maintenance) the tenant is responsible for in addition to the rent.

The main appeal of Triple Net Lease REITs lies in the potential for stable and predictable cash flows. Since tenants are responsible for most property-related expenses, the REIT can generate relatively consistent income for investors.

Triple Net Lease REITs usually have lower operational involvement compared to other types of REITs. The responsibility for property management, maintenance, and expenses typically falls on the tenants, not the REIT itself. This passive nature can be attractive to investors looking for a more hands-off approach to real estate investing.