Acquiring a property with Triple Net Lease (NNN) is a common investment practice for investors who are seeking a lucrative source of income. NNN is an ideal venture for both new and sophisticated commercial holding investors. However, when investing in the triple net lease for sale, you need to consider various facets.
Considerations Before Investing in a Triple Net Lease for Sale
Although Triple Net Lease is a remunerative venture, you shouldn’t go blindly about it. You need to evaluate various factors to find out if it’s worth it. Here are vital concerns to pay attention to:
1. The Form of Building and Its Location
The form of the building and the location of the prospective property is an essential long-term consideration. Undoubtedly, tenants will always come and go, but the building should remain attractive to the incoming tenants.
it is imparative buy a property with easy access to amenities like hospitals, shopping centers, and transportation stations.
2. The Creditworthiness of Prospective Tenants
The creditworthiness of tenants is an essential factor when considering investing in a triple net property. You should remember your stream of income will get generated by the tenants through rent. Thus, a creditworthy tenant will pay rent on time to ensure the property generate a constant and steady income.
3. Term of the Lease
You may choose to invest in the triple net lease for a long or short term. The short-term investment plan means you’ll have a reduced income stream. On the other side, you might consider the long-term approach. This way, you can easily bargain for a discounted price from the seller.
4. Engage a Legal Counsel
Investing in a triple net lease can be a lengthy process. More so, you need sufficient protection under buying and sale agreement. In addition, you might find out that the listed property has some defects, which can destroy your investment’s value.
A reliable lawyer guides you through the entire legal process. This lead includes conducting the survey, reviewing the title, and other due diligence requirements.
What are the Benefits and Drawbacks of Triple Net Lease Property?
Benefits
Steady Income- As the owner, you’re guaranteed a steady income.
Reduced Liability– As the landlord, you won’t be responsible for insurance premiums, maintenance costs, and taxes.
The Liberty to Sell the Property– You can sell the property any time you want.
Drawbacks
Fixed Earning Cap– Although triple net lease property has a steady income, the earning cap is fixed. This means you cannot hike rent during the lease period.
High Post-Lease Expenses– The tenant might fail to renew the lease. In such cases, you’ll have a burden of heft expenses before you find another tenant.
Find Lucrative Triple Net Lease for Sale Near You
Are you searching for lucrative commercial real estate investments? Investing in triple lease property will give you financial freedom.
Net Lease World has been helping brokers, agents, and investors like you to unlock new ideas. They offer databases that allow you to find what’s on the market list no matter what you want to invest in.