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. You only have to know it is a long term investment and you need the right location, asset. Lease and ownership. You think to know whether you will be able to replace and also whether there is demand for the property. You are sure to fetch more with a property that is in a stronger location.
When you are thinking about the asset, it has to be the right one, in its best condition and fetching the right amount. The cost and the condition depend on each other. You will be able to replace tenants easily when you have the right asset. 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.
The other thing to think about is the tenant. In this volatile economy, you should think about having the right tenant It is crucial to ensure that your tenant has a good credit rating. As you make your choice of tenant, you need to differentiate between the corporate backed and franchise backed kind of lease. 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 need to know all about the right lease before making your conclusion. You can get such information from the internet. The right lease should be the one that is long enough to offer stability and also lease bumps so that it can take care of rent increases. It should be free from any early terminations.
The other important thing that you should consider is the ownership structure. It is important to make sure that you understand the different types of real estate ownership. There are mainly two types that are recommended. You can either have a fee simple ownership or a fee ownership lease. It is important to have the ownership of the ground where the property is other than the property alone. You should be careful when you are making your investment to know about the ownership structure. You should avoid putting your money on a property that you are not sure about. Investing is real estate s a huge investment and you must be sure that you will have nothing to regret about.