A triple net lease with a single-tenant building isn’t a real estate investment; it’s closer to buying a bond. The majority of risk is predicated on the ability of the lessee to meet their financial obligations. If the lessee doesn’t meet their financial obligations, there will probably be a significant investment loss.

A secondary influence on the value of the investment is interest rates. Increasing interest rates will lower the value of the investment. Decreasing interest rates will increase the value of the investment.

NetGain believes real estate is a business that can be can be managed and its value improved. A triple net lease is somewhere between an equity and a bond investment. The investor has no managerial control for improving its value. Obviously, NetGain has a bias toward equity ownership of real estate.