What to Look For In a 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. You are sure to fetch more with a property that is in a stronger location.
You need to ensure that the property is in the right 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. You may think that the lease is strong but that would only be the case if the parent corporation is involved. It is also wise to think of tenants who are protected or benefiting from the amore 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 not also be subjected to early terminations.
You should make sure that you think about the ownership structure. You need to learn and be familiar with different real estate ownership types. There are two important types that are highly 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 should be careful when you are making your investment to know about the ownership structure. You need to be sure before you start on your investment about the ownership structure and avoid anything that is not clear. Investing is real estate s a huge investment and you must be sure that you will have nothing to regret about.