Guidelines on Triple Net Property Investment
When you are thinking on the way to invest in property, triple net property investment can be one of the most reliable forms of real estate income producing investment. All what you need to have in mind is that it is a long term investment and you must be sure you have the best location, asset, tenant, lease as well as ownership. As you think about location, you should be thinking in line with replace ability and the market demand on the property. The property that is in a stronger location is sure to fetch higher amount.
You need to ensure that the property is in the right condition and fetching the right amount. The condition and the price go together. The right asset will allow you to replace tenants when it is time to do so. When you have a custom-made property for a certain tenant it may be difficult to replace with another one in case there is need to do so.
You also need to think about the tenant for your property. The the current volatile economy, you need to be sure you have chosen your tenant wisely. You need to ensure that your client has a high credit score rating. As you make your choice of tenant, you need to differentiate between the corporate backed and franchise backed kind of lease. You may think that the lease is strong but that would only be the case if the parent corporation is involved. You will need to think about the tenants who are beneficiaries of a more volatile economy.
You need to know all about the right lease before making your conclusion. You can get such information from the internet. The best lease should be long term for stability and provision for lease bumps that take acre of increases in rent. It should be free from any early terminations.
You should make sure that you think about the ownership structure. It is important to make sure that you understand the different types of real estate ownership. There are two important types that are highly recommended. You can choose between a fee simple ownership and a fee ownership lease. It will be better if you can have the ownership of both the land and the property other than the property on leased land. You need to make sure you understand fully how the land you are investing on is fully owned. If you release that the ownership is not clear, you should not put your money on that property. Investing is real estate s a huge investment and you must be sure that you will have nothing to regret about.