Guidelines on Triple Net Property Investment
As you think of the best investment to real estate investment, thinking about the triple net property investment may one of the wisest decisions you can make in terms of real estate investments. All what to know is that, you will be entering into a long term investment, and you need to have the best location, the right tenant, asset, lease and ownership. When it comes to location, you need to think about replace ability and the tenant demand. 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 cost will depend on the condition. The right asset will allow you to replace tenants when it is time to do so. You may not be able to replace your tenants easily if or asset is custom made to suit a certain client.
It is also important to consider the tenant for the property. In this volatile economy, you should think about having the right tenant You need to ensure that your client has a high credit score rating. When you are looking for the right tenant, you need to make a difference between corporate backed and franchise backed leases. The strength of a certain brand may indicate how strong the company is but it may not be an indication of the strength of the leas especially if it is not backed by the parent corporation. You will need to think about the tenants who are beneficiaries of a more volatile economy.
You also need to know all about the lease information before selecting the right lease. The internet can be a good resource when it comes to such information. The best lease should be long term for stability and provision for lease bumps that take acre of increases in rent. It should not also be subjected to early terminations.
You also should be keen on the ownership structure. You need to learn and be familiar with different real estate ownership types. There are mainly two types that are recommended. You can either have a fee simple ownership or a fee ownership lease. You would rather have either the ownership of both the property and the land or at least the land other than a property on a and that is on lease. You need to make sure you understand fully how the land you are investing on is fully owned. You need to be sure before you start on your investment about the ownership structure and avoid anything that is not clear. Before you invest heavily in any real estate investment, you need to be sure that you have done your research well and you are sure it is the right thing to do.