Triple Net (NNN)
One of the most common property investments we recommend are are "triple net," also known as "NNN" deals. These are typically single-tenant properties leased to tenants with high credit ratings on "net, net, net" terms (hence the NNN acronym), meaning the tenant is responsible for real estate taxes, insurance, and all maintenance. As an investor with a typical NNN lease you will have zero operating expenses associated with the building. That doesn't mean you won't have ownership costs related to your investment; those typically being accounting, legal, insurance and of course taxes.
There are variants of Net investments based geography, tenant credit, building construction type and investor requirements. The second most common net investment is considered a "double net" also known as a "NN Investment". In a typical NN investment the owner (you) may be responsible for maintenance of roof, foundation and or structural elements.
As an investor you are almost always better off with a NNN investment yet sometimes NN deals can yield a better CAP rate on a short term basis. Of course your risk increases with NN investments but if you are willing to accept the higher risk the resulting higher CAP rate may be worth the risk.