A Glimpse Of triple net lease Investment Property Samples
Let's
discuss the NNN
investment property samples for sale along with the
advantages and the entire ways one should approach for a lease agreement such
as Gross lease, Net lease, NNN lease, NN lease, Absolute lease, or Bond lease.
We have explained the basic differences between these common structures here.
These
lease structure agreements define the term of the leases. In case of gross
lease all the gross also known as operating expenses of the property are handled
by the landlord like property insurance fees, maintenance costs, and real
estate taxes are paid by the owner of the property. A net lease should always
have a rent payment that covers the operating expenses net or excluding
individual costs. The more 'nets' the lease will have fewer property expenses,
the lease payment will cover. Now let's understand why NNN investments are
popular among real estate investors and how we should make the choice of
location.
Understanding
'triple-net lease' investment
'NNN
lease' are the contracts under which an agreement is signed between the tenant
and owner of the property. Sometimes these leases are also known as 'triple-net
lease,' under which the tenant of the property pays all the property expenses
along with the base rent — allowing the owner of the property to get relief
from all the burden of paying the maintenance expenses of the property. This is
the best type of investment chosen by the investor for the steady flow of
income from the property they own without spending anything. Under this, the
tenant of the property also pays expenses like utilities and insurance. The
base rent under a NNN lease is quite low as compared with the gross lease.
Before
knowing about Triple net lease Investment Property Samples for sale, an investor should know about the choice of location:
Strong
demographics and the distinct parcel is the key to success. Therefore when the
investor purchases a NNN property, the vital point to be considered is the
location. The property which the investor decides to buy should have a good
number of residents who require the product or the service that the tenants
provide. The property must be reachable from the main road; easy access for the
client should be there to enter and leave. The locations that are close to many
tenants have the benefit of being treated as a destination for shoppers.
Fact
check before purchasing a triple-net property:
* Location – How easy would it be to replace a
tenant if you lose him?
* How experienced is the franchisee and how many
other properties does it have?
* Is the tenant a national chain or a
franchisee?
*
What's the financial performance of the location in the last few years?
* How much time remains on the lease? If there's
more time, the property would be more valuable.
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