NNN N00b Question,

Hi, I'm a residential guy looking to go commercial and I'm intrigued by the idea of NNN. The question is NNN sounds too good to be true, what are the downsides of it? I mean as long as your investing in a company with an investment grade credit rating then there appears to be little risk, and if that's the case then why are people fooling around with residential rentals???

Think of it from your tenant's point of view.

You keep relaying all the costs to the mom-pop shop w/o any regard for THEIR cashflow. If they can't pay your rent b/c you became a stickler for relaying every damn dime of costs, eventually, they might break and move out.

I never do deals that's not a win-win for ALL parties involved, including tenants. You try to save every dime, and that's all you'll get. A dime.