How does the tenant pay the NN on a NNN Lease Property?

[Morris Pearson]

I'm about to acquire my first commercial property and at the same time acquire a new commercial tenant. I'm structuring it as an Absolute NNN Lease where the tenant is responsible for repairs, insurance, and taxes for a significantly reduced rent. What do I have to give the tenant so that they can pay the insurance and taxes on time? Do they have to go through me where they reimburse me for payments? Or do they pay both directly?

[Steve Morris]

Directly to the billing place along with their rent.

You want to make sure that each 3rd party that they're paying shows you as an "interested" (name varies) party.  That means, that if they miss a pmt you get a call/notified right away.

NNN deals are nice, but you don't want a tenant putting you in default and then finding out a ways down the road if he doesn't pay.