If you're new to commercial NNN (triple-net) leases, here are the three deal-killers that catch almost every beginner off guard — check these BEFORE you fall in love with the cap rate.

1. Weak or unrated tenant credit

A high cap rate on a tenant with no credit rating or a shaky balance sheet isn't a deal — it's a gamble. Always pull the tenant's financials or credit rating (S&P/Moody's if available) before you even look at the lease terms. A 7% cap on an investment-grade tenant beats a 9% cap on a tenant that could go dark in 18 months.

2. Short remaining lease term with no renewal options

NNN value is built on lease-term certainty. If there's less than 5 years left on the primary term and no renewal options, you're not buying an income stream — you're buying a vacancy risk with a countdown clock. Lenders will price this in too, so your financing options shrink fast.

3. Landlord responsibilities hiding in the "net" lease

Not all NNN leases are created equal. Some push roof and structure back onto the landlord — read the lease abstract line by line for exactly what "net" excludes. A single roof replacement can wipe out years of cash flow if you assumed it was tenant-covered and it wasn't.

Run every deal through these three filters first. It won't tell you if a deal is great, but it will tell you fast if a deal is dead — and that's the skill that saves beginners the most money.