Advantages of Triple Net Lease Properties
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What Are Some Advantages Of A Triple-Net Leased Property
There are several advantages. First, the monthly lease agreement provides a very predictable, long term income stream to the property owner. Second, since there are no property expenses (taxes, maintenance, or insurance) to be deducted, the income stream is not impacted by future increases in property operating expenses. The property owner (investor) can enjoy a rental income stream, without property management or property expenses.
Subject to the credit worthiness of the tenant and the terms and conditions of the lease agreement, the investor can enjoy a high degree of security and should expect to have additional rental income over time as the inflation hedge feature of the lease agreement comes into play.
Can a Triple-Net Leased Property Be Used To Complete A Real Estate Exchange? A triple-net leased property can be an excellent replacement property in completing a real estate exchange transaction. Many real estate investors dispose of their management intensive properties such as apartment buildings, duplexes, and office buildings, hoping to find management-free properties producing long term, predictable income. If you are thinking of disposing of your business or investment-held property, would like to “Pay No Capital Gains Tax” and reinvest into a management and headache free property, the purchase of a triple-net leased property through a real estate exchange, can be just what the doctor ordered.
Why invest in Commercial Real Estate? Or Why Invest in Triple Net Lease Properties?
Investing in real estate is a great way to make a lot of money. Commercial real estate on the other hand is even a better way of making money; however, it is important that you know what you are doing.
First of all, it is essential that careful planning is used to determine what you want as an investor. You will also need to use your skills and knowledge to attain those desires. Make sure that you also understand your weaknesses so that they don’t get in the way of your goals.
Not only is planning necessary, but also determination and patience. As an investor, you need to know what type of property you want to invest in. You should also consider the size and the location.
For you to make a lot of money you need to understand the local market and what is hot. The more you know about the latest trends, the more you will know about getting the right property and the right price.
Once you have chosen the property, it must be valued accurately. You will want to determine if the investment will give you enough return. You may want to consider different types of financing such as notes.
Investing in commercial properties can seem really scary. Many investors don’t even try to go into this market even though the returns are normally higher than those of home real estate investing. Ultimately, they just don’t want to take the risks.
The highest risk commercial real estate usually involves properties where there are many tenants. These could include a building that has more than one office or shop. On the upside, these kinds of properties have a lot of money attached to them; however, you will most likely have to deal with the tenants on a regular basis.
More than anything, as you go into commercial real estate investing, you need to be focused and be aware of all the aspects that are involved. You need to make sure that you pick apart all of the documents that relate to the property that are purchasing.
Anything to deal with leases, mortgages, notes, title policies, occupancy certificates, maintenance contracts, parking lot contracts, insurance policies, and tax information should be closely looked at.
You will want to hire an independent surveyor to determine the situation of the property and any equipment. It is also a good idea to hire an attorney to help you with the lease information, title, policies, taxes, licenses, rent roll, bill history, etc. Understand every little element.
You will also want to know about the tenants and if there have been any problems in the past. If you know any issues at hand, you will have a better chance of negotiating your price.
You can also find a firm that gives their assistance and goods to help your investment succeed if you don’t want to do it on your own.
Examples of Triple Net Lease Property
Some Examples Of Commercial Triple-Net Leased Property
If you drive through the business district of any city or town you will see commercial triple-net lease properties: for example all the major restaurants such as; Burger King, Taco Bell, Kentucky Fried Chicken, Pizza Hut, the automotive after-market such as; Goodyear Tire, Pep Boys, Jiffy Lube, retail outlets such as; Toys R Us, K-Mart, and Home Depot to name a few. Most of the real property occupied by these companies are owned by real estate investors and leased to these companies under a triple-net lease arrangement.
Why Real estate investing?
Most people enter a job field because they are interested in making money. Investing in real estate is not much different. If you know how to invest, the real estate market can be a profitable business.
Before you jump into the fire, there are some things that you should know about investing. Just like any other kind of work, there is some education that goes along with it. There are several laws, methods, and different kinds of investments.
It is not that difficult to find local investment groups that meet on a weekly basis to learn about investing. They help each other learn about the necessities of investments.
Nationally, there are also experts you have seminars and training courses that can help you start the investment process.
When you consider real estate investing, there are several different kinds of properties to invest in. Some of them are realtor listings, homes for sale by owner, bank owned properties, auctions, tax sales, and commercial.
Realtor listings are homes that are listed by real estate agents who act for the home owner or seller.
Homes that are for sale by owner are homes that the owner wants to sell without any representation from a realtor.
Foreclosures are the main reason why banks own various properties. These homes are usually sold at a lower price because the bank would rather have you have the home while they loan you the money for it. You will find that many banked owned properties are in need of repair – this could be due to the fact that the homeowner didn’t have enough money to stay current with repairs.
Auction homes are homes put up for sale and put on for bid for a short period of time. The highest bidder after a certain date and time will be able to buy the home.
Tax sale homes are comparable to foreclosed homes; however, they are owned by the city instead of the bank. This is due to default of tax payments.
Commercial real state involves purchasing business property. There is a lot more responsibility that comes with owning this type of investment, but the returns are also a lot higher.
When you think about different ways of paying for the property that you want to invest in, there are many traditional ways of doing so. You can pay cash or get a mortgage.
There are additional creative ways of paying for your investment property. Some investors take over the monthly mortgage payments of the original owner. Or you could even do a rent-to-own option, or lease with option. This is where you pay a monthly rental payment for a specific length of time and then eventually buy the property.
No matter how you figure out your payment methods, investing in real estate is a money-making, low threatening business.
It is just essential that you know what you are doing.
As you purchase properties and then rent them out or flip them, you will be making a great income.

