How to Select the Right Triple Net Property Investment
If you are wondering the best investment you can make in real estate, triple net property investment is one of the best income generating projects in the real estate business. 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. The property that is in a stronger location is sure to fetch higher amount.
When it comes to the asset you will need it to be in the right conditions and also asking for the right price. The condition and the price go together. The right type of asset is the one that you can replace tenants when need be. You may not be able to replace your tenants easily if or asset is custom made to suit a certain client.
The other thing to think about is the tenant. 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 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 right lese should be stable enough and also make sure that there is enough provision for the rent increases. 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. The recommendations are upon two types. You can choose between a fee simple ownership and 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. Real estate is a big investment and you need to be sure that you have done your homework well before you put your money there.