Passive Income Through Triple Net Leases
NNN Properties for Passive Income Investors
The same properties institutions own — Walgreens, CVS, Chick-fil-A, Dollar General. We handle tenant vetting, lease analysis, and cap-rate benchmarking. You collect the checks.
✓ Fortune 500 tenants • ✓ 10–20 year leases • ✓ Zero landlord duties
Why NNN Investors Choose Passive Income
Truly Passive
Tenant pays all operating costs. You collect rent. No repairs, no phone calls, no surprises. True hands-off ownership perfect for busy professionals.
Learn More →Predictable Returns
Investment-grade tenants, long-term leases, built-in rent escalators. Your cash flow compounds reliably for 10–20+ years.
Learn More →Financeable
Banks finance 70–75% at favorable rates. Predictable tenant cash flow makes lenders comfortable. Leverage your capital.
Financing Options →The NNN Advantage
Zero Landlord Duties
In absolute NNN, the tenant is responsible for everything: property taxes, insurance, maintenance, repairs, even major capex (roof, HVAC, parking lot resurfacing). You own the property but have zero operational responsibilities. Compare this to apartments or retail where you're constantly managing.
- ✓ No rent collection calls
- ✓ No emergency repair budgets
- ✓ No tenant complaints
- ✓ No property management fees
Income Stability
A 15-year NNN lease with a Walgreens is as close to a "bond" as you get in real estate. Walgreens has been operating for 130+ years, maintains 9,000+ locations, and has fortress credit (investment-grade). Your base rent is contractually guaranteed. Escalators (2–3% annually) compound over time.
- ✓ Contractual rent obligation
- ✓ 2–3% annual escalators
- ✓ 10–20 year visibility
- ✓ Low default risk
Available Investment-Grade Tenants
Walgreens
Pharmacy
CVS
Pharmacy
Dollar General
Discount Retail
Chick-fil-A
QSR
Starbucks
Coffee/QSR
AutoZone
Auto Parts
Chipotle
Fast Casual
Planned Parenthood
Medical
Planet Fitness
Fitness
NNN Properties FAQs
What exactly is an NNN property and why is it passive income?
NNN (triple net) means the tenant pays all three costs: property taxes (1st net), insurance (2nd net), and maintenance (3rd net). You only receive base rent and tenant escalators. No landlord responsibilities—no repairs, no emergency calls, no surprise bills. With long-term leases (10–20 years) from investment-grade tenants (Walgreens, CVS, etc.), your income is predictable and truly passive.
What cap rates can I expect from NNN properties?
Investment-grade tenants (Walgreens, CVS, Dollar General) typically yield 5.5–7.0% cap rate. Smaller regional tenants may offer 7.0–8.5%. Cap rates vary by tenant credit (S&P rating), property location, and lease length. Our analyzer helps you benchmark against current market rates and find deals that meet your return target.
How much can I finance an NNN property?
Banks typically finance 70–75% of NNN purchase price at favorable rates (currently 5.5–7.5%). The predictable tenant cash flow makes lenders comfortable. You'll need 25–30% down payment. Our analyzer shows your required down payment and cash-on-cash return based on your financing assumptions.
What's the difference between absolute NNN and modified NNN?
Absolute NNN: tenant pays everything (taxes, insurance, capex replacements). You're completely passive. Modified NNN: you may share some costs (e.g., roof, HVAC). Absolute NNN is the purest passive income but carries more tenant credit risk. Modified NNN is safer but requires occasional capital outlays. Most institutional NNN investors target absolute NNN with investment-grade tenants.
How do I evaluate tenant credit risk?
Tenant credit is rated by S&P or Moody's. Investment-grade tenants (BBB- or higher) are low-risk and trade at lower cap rates (5.5–6.5%). Speculative-grade tenants (BB or lower) are riskier and demand higher cap rates (7–9%+). Check the tenant's credit rating, revenue, and store count. Fortune 500 tenants like Walgreens or CVS are ultra-safe but have lower cap rates.
What lease terms should I look for?
Longer is better: 15–20 year leases lock in income. Escalators matter: 2–3% annual rent growth compounds over time. Renewal options: multiple 5-year renewals (e.g., '15 + 5 + 5') give you long-term income potential. Termination clauses: check if the tenant can terminate early without penalty. Strong terms = lower risk = better long-term returns.
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