Quote:
Originally Posted by glassman
Erik, what is NNN? Also, thanx for the new word of the day, "defeanance".
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NNN stands for Triple Net. It means that in addition to rent, a tenant on this type of lease also pays for basically all other expenses related to the property, i.e. property tax, common area management, and any building repairs including a/c units, roof, etc. All upgrades and repairs are still owned (and deductetd) by the property owner though, a nice side benefit. Basically the landlord/property owner has to do nothing other than make sure the money comes in every month.
Quote:
Originally Posted by Vegas69
Sounds solid and complicated...  Can't beat that tenant! I own NNN if you are referring to the stock.
Disclaimer: This is coming from a licensed real estate agent. ha A skilled agent can give you insights that could be a big negotiating factor. I do agree that an attorney is crucial for a commercial deal, but their focus is law, not market dynamics and what should be expected in a negotiation. Bottom line, the money you pay them could be a wise investment. The attorney will ensure the deal is sound. |
I agree that in Rodger's case it would be wise to get a sense of the market from a licensed agent familiar with his type of property, but they do that for free. Since in his case there is already a buyer and a seller there's little else for the agent to do other than draw up a contract (which again mostly protects THEM) which each party should have a lawyer review anyway. If the agent handles the contract I would negotiate a much lower commission from the standard 5-6% which includes marketing, advertising, etc. I'm not against agents at all but on these commercial deals they do everything they can to keep the deal "in house" so they get both the buyer/seller commissions. I've done 3 fairly big deals and every one was a dual representation deal.