April 28, 2017

In the long-term triple net lease properties for sale could be your ultimate source of income. It assures a real estate ownership along with the structure: location, asset, lease, ownership, and tenant. In this article we discuss how these components influence the structure of triple net lease properties for sale as a whole.

Location

The idea revolves around the concept: tenant demand and replace-ability. Many ignore the aspects binding to location while investing in triple net lease properties for sale. This is not a practical approach to rely upon the primary tenant to offset the impact of a weaker location. The ideal invest concludes in both a strong location and a strong tenant. Though the net asset cost might be higher in a lucrative location, you are left with the option to attract a flow of clients for the property high on demand.

Asset

The integral part of ideal triple net lease properties for sale is the right conditions and the pricing. In real estate, condition and cost are interdependent. You can buy a low-quality asset at lower prices, but the top locations may cost you a lot; either ways, it doesn’t make your investment foolproof. The viability entirely depends on its ability to place tenants at any given time.

Tenant

When it comes to selecting the right tenant, you should consider those who have a clean credit rating, with no or little credit record. Also, you have to distinguish between franchise-backed and corporate-backed leases.

Lease

Thoroughly analyze the terms of your lease. A lease should accommodate a lease term long enough to offer stability, lease bumps, regularity – free of unfair early termination.

Ownership Structure

The ownership structures play a key role in protecting your interests when investing in triple net properties. Both leased fee ownership and fee simple ownership are recommended. You should own both the improvements and land; instead of owning the improvements only.

About the author 

Dwaine Clarke

Dwaine is the Founder and President of NNN Deal Finder an investment real estate services firm exclusively focusing on Single and Multi-Tenant Net Lease Properties. The firm provides a full range of brokerage and advisory services nationwide to High Net worth Investors, Developers, REITs and Institutional Investment Funds. Contact Dwaine to discuss securing your next investment.

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