Net Lease Investing: 3 Indicators Of A Good Property Investment
If there is one good thing about the pandemic, it’s that it opened our eyes to the importance of a good investment. Unfortunately, investing in traditional high risk-high return investments such as bonds and stocks and modern ones such as crypto and NFTs requires a lot of analysis.
But even then, the risk is high, and no one can tell what will happen to those investments when the economy goes south, which it probably will.
That’s why choosing a reliable investment that can give you a decent and stable return, little to no time to manage, and a low risk of going wrong is crucial. Especially if you don’t have much time to pay attention to your investment and want your money to do the work for you, if that’s what you want, then a triple net lease property investment is the best investment for you.
Benefits Of Investing In Triple Net Lease
A triple net lease investment or NNN is a term of agreement where the tenant will have to pay for all the net expenses the property owner have to deal with, such as property taxes, property insurance, and maintenance plus utility.
At the same time, as the property owner, you have to worry about the property’s outdoor maintenance, such as walls, roofs, and the parking lot.
This investment is best because it’s low risk and can give you a stable income with low to no work for the next 10, 15, to 20 years, depending on the terms of the agreement. It’s a considerably low-risk investment with an outstanding return, but only if you know how to choose the right triple-net lease property.
How To Find Good Triple Net Lease / NNN Property For Sale
So now, how can you pick a suitable property as your triple net lease investment? Here are the three essential things you need to consider.
1. Physical Location
Physical location is one of the most crucial points when choosing a triple net lease. A good one must be in an established neighborhood and relatively accessible from where the people live.
Also, when considering the physical location, you need to consider the businesses near the vicinity to analyze whether the tenant will be able to sustain their business in the area.
2. Geographical Location
For several reasons, geographical location is also important when considering an NNN property for sale. First, an area with a high-growth economic rate and steady increase in population is an excellent option for a triple net lease property. Because the growth of your tenant’s business in the area often is the same as the growth of the economic rate and the population.
Also, steady and healthy economic and population growth means business opportunities are growing. This means that throughout the year, your tenant will be able to sustain their business and gives you a stable income for a reasonably long time (hopefully the entire duration of the terms).
3. Tenants
Last but not least, tenants. Choosing an excellent tenant to rent your property can seem tricky, though it actually is not. When choosing a tenant, you need to think about two main things: the type of business and creditworthiness.
A type of business that deals with the necessities of life, such as food and household appliances, is a good choice because it will be able to sustain itself even during low economic growth. At the same time, creditworthiness is a reasonably good indicator that they will do their responsibility of paying the taxes, insurance, and maintenance on time.
Ready To Find A Triple Net Lease Investment?
Now that you know how to pick the profitable and sustainable triple net lease property for investment, are you ready to make one yours? If so, then NetLeaseWorld is the perfect place for you to start.
In NetLeaseWorld, we have a comprehensive list of nnn properties that are ready to be yours. From convenience stores to banks, from Dollar Stores to Chipotle, from California to Tampa, choices that tick almost all the boxes of a remarkable triple net lease investment option.
Best part? We give you the price comparison of the market price compared to the property price listed so that you can choose which one is a good deal and which one is not.
from Arrest Your Debt https://ift.tt/i29g1v8
via IFTTT
Comments
Post a Comment