When deciding to forego your office building or apartments with multiple duties and time invested efforts, consider Net Net Net properties to either replace them or add to them for your portfolio.
Here is a list why this is true:
- Little to no responsibility except receiving a rent check in the mailbox.
- Make sure when purchasing the net net net properties, tenants, locations, leases and the building itself meet your standard expectations of high quality and long-term durability.
- The tenant needs to have financial strength in order to pay future rent while the location needs to have future expectations of stability and growth. The net net net properties need to be SOLID with the tenant paying and being responsible for everything, and the building should be able to be used for future tenancy without having to spend a fortune changing it.
- The purchase should include due diligence on the area and the loan structure that most lenders will consider based on your tenant. The margin between loan payment and cap rate purchased should give the investor a nice cash flow like 5 percent or better with future increases.
- Net Net Net properties have the least amount of time, effort and worries if chosen correctly for the investor.
- A corner location with curb cuts on two sides with at least 1/2 acre of land is preferred. A major street with good traffic counts of 15000 cars or more a day is respectable.
- Watch out for medians and future road changes that could cause a problem of ingress or egress to your site.
Interested in moving to the next level, and acquiring a commercial income property that will help you reach your passive income goals?
Contact Jeff Gitt at 314-757-1031 for more information, or to find out about the equity and finance options offered by Westwood.Tags: cap rate, loan payment, net net net, Net Net Net properties, Net Net Net property, real estate investment property, triple net lease