Tips for Investing In a Triple Net Property
We are familiar with the proverb that money can’t buy happiness, but that happiness alone can’t keep out the rain. The reason behind that is that most of the people choose to invest their money as a way to generate more income. For one’s initial investment commercial real estate industry are considered as a great source. This is because unlike residential real estate the investor has a higher number of tenants and thus a higher source of income for them.
However, it very challenging for the investor to invest in commercial real estate when the investor is not sure of what makes the best investment and where to invest. Therefore we are here with few tips that need to be followed by the investor before investing in triple net properties for sale.
1. Know your worth from the beginning
The First point to be considered before investing in a NNN property and finding a lease rate is that it’s essential to know that investors in NNN property offerings have to be authorized with a net worth of $1 million at the least. This should be without including the value of an investor’s primary residence. If an investor doesn’t have a net worth of $1 million, the investor will still be able to invest if he has an annual income of $200,000.
2. Take great heed of your tenant’s credit
The investors who don’t have the time or don’t want to do the maintenance, pay maintenance fees, file property taxes, etc consider investing in triple-net. These investments are considered as gold mine investment for the investor. However, it’s essential that you choose a tenant that has a great credit score because they’re going to be taking over these jobs for you. You want to be sure the person you let into your building does their job right.
3. Selection of Best Location
It’s essential first to consider the location of the property before the investor considers investing in NNN properties and establishing a lease rate. This is the area where the building is demanded to be high demand? If not, it may not be the best place to invest. This is because the investor’s tenants want to have the right spot on the road to establishing themselves as a business.
Triple net investing is a good option, especially for those investors who are new to the commercial real estate market.
All the information provided above has been researched and thought to be knowledgeable for you. For consultation and assistance regarding 1031 Exchanges, you can call 888-993-2835 or email us at firstname.lastname@example.org