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. You think to know whether you will be able to replace and also whether there is demand for the property. When your property is in a stronger location, you are sure it will cost more.
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. 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. .When you are dealing with a volatile economy, it is crucial to choose 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. You may be thinking that a certain lease I strong based on the strength of the corporation but if the particular corporation is not liable for the lease then it will not be as strong as the parent company. It will be wise to consider the tenants who are protected by a more volatile economy.
You should be well guided as pertaining to the right lease before you make your selection. 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. The right lease should not be subjected to any premature terminations.
You also should be keen on the ownership structure. It is important to make yourself familiar with the real estate ownership types. The recommendations are upon two types. The first one is the fee simple ownership and the other is the lease fee ownership. 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 be sure about the ownership of the property that you are investing on. 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.